3M boosts guidance following robust Q2

(Sharecast News) - Shares in 3M jumped on Tuesday after the US industrial giant raised full-year earnings guidance following a strong second quarter. The group posted sales of $6.5bn in the three months to June end, a rise of 2.4%, or 2.3% on an organic basis, while adjusted earnings per share sparked 11% to $2.40, ahead of forecasts for $2.25. The adjusted operating margin was 40 basis points stronger year-on-year at 24.9%

Growth was driven by 3M's largest division, safety and industrial, where adjusted sales jumped 8.2% on an organic basis to $3.09bn. Transportation and electronics' revenues were also higher, up 5.9%, helping to offset a 2.1% decline in the consumer unit.

Looking to the second half, 3M - which was founded in 1902 as Minnesota Mining and Manufacturing - confirmed that higher pricing would "fully offset" the impact of oil-led inflation. It reiterated guidance for total sales growth of more than 4.5% but increased EPS guidance to between $8.80 and $8.95. It had previously guided for EPS of between $8.50 and $8.70.

William Brown, chief executive, said: "We delivered a strong quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins and double-digit EPS, reflecting the progress we're making on our strategic priorities and building a higher-performing company."

By 1400 BST the New York-listed stock had put on 7% in pre-market trading.