January 11, 2025

3M Beats Estimates, but Sales in Two of Its Three Units Dropped

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Key Takeaways

  • 3M posted better-than-expected results Tuesday, but sales were down in two of its three divisions.
  • Revenue declined at the company’s Transportation and Electronics and Consumer divisions.
  • 3M’s sales were hurt by a drop in global demand for vehicles and consumers cutting back on spending, the company said.

Shares of 3M ( MMM ) lost ground Tuesday as two of the diversified products maker’s units posted sales declines.

The maker of Post-it notes and Scotch Tape reported third-quarter earnings from continuing operations of $1.98 per share, with revenue rising 0.4% to $6.29 billion. Both exceeded estimates.

Transportation and Electronics Unit Sales Slip

Sales at its Transportation and Electronics unit fell 1.5% to $2.14 billion as global demand for automobiles slid, especially in the European market. Consumer segment sales dropped 1.2% to $1.3 billion, which the company blamed on softness in consumer discretionary spending . Sales at the Safety and Industrial division increased 0.5% to $2.77 billion, due to the higher demand for industrial adhesives and tapes.

The company now says it sees full-year earnings per share (EPS) of $7.20 to $7.30 versus the earlier $7 to $7.30. It expects revenue growth of about 1%, whereas 3M previously anticipated a range of down 0.25% to up 1.75%.

Despite Tuesday’s drop of about 1% to $132.76, 3M shares are about 46% higher year to date (YTD) in 2024.

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