The nation’s top safety and industrial products company said that its third-quarter results had beaten analysts’ expectations. The company said sales rose 6.9 percent in its Industrial and Safety division compared to last year. Earnings reached $3 billion and topped a $2.93 billion estimate from FactSet. The segment’s growth was driven by personal safety, automotive, and roofing granules sales.
Meanwhile, sales from the company’s healthcare division grew more than 25 percent and reached $2.2 billion. Analysts had only projected $1.36 billion in 3M’s healthcare sales. 3M’s oral care, medical solutions, and separation and purification equipment drove the gains in that segment.
Analysts had expected $8.32 billion in revenue, but 3M’s revenue stood at $8.35 for the period. Its earnings per share (EPS) reached $2.43. Analysts had only anticipated $2.26 a share.
3M said that its operating cash flow was also 23 percent higher than last year’s period from the same quarter. Its cash flow was reported as $2.5 billion.
Even though 3M had good news for its investors, its stock fell 1.5 percent during premarket trading once the company released the quarterly results.
The company’s electronics and transportation division saw falling sales by 7.4 percent, down to $2.3 billion in the third quarter. 3M is also only expecting a tiny single-digit growth for October or perhaps even for sales to be flat.
Mike Roman, CEO of 3M, said: “Our third-quarter performance demonstrated once again the strength of the 3M model as we executed well, served customers, and continued to fight the pandemic. Though economic uncertainty and challenges due to the COVID-19 pandemic remain, we returned to positive organic sales growth with sequential improvement across businesses and geographies.”
Overall for the year-to-date, 3M shares have fallen more than 5 percent.