The St. Paul, Minn.-based company posted profits of $1.3 billion, or $2.22 per share, on sales of $7.2 billion for the three months ended June 30, 2020, for a 14.5% bottom-line gain on a sales decline of -12.2%.
Adjusted to exclude one-time items, earnings per share were $1.78, 2¢ behind Wall Street, where analysts were looking for sales of $7.3 billion.
3M, a major producer of personal protective equipment, namely the N95 respirator mask that has been highly sought-after during the COVID-19 pandemic, attributed some of its financial shortcomings to the ongoing pandemic.
The company noted that COVID-19 affected its EPS with an associated restructuring charge of $58 million. While market demand remained high in personal safety, home improvement, general cleaning, semiconductor, data center and biopharma filtration, markets like healthcare elective procedures, automotive OEM and aftermarket, general industrial, commercial solutions and office supplies experienced downturns during the quarter.
“While our results were significantly impacted by the global economic slowdown, we executed well, managed our costs and delivered another quarter of robust cash flow,” 3M chairman & CEO Mike Roman said in a news release. “We are taking actions to navigate near-term challenges, while relentlessly innovating for our customers and investing for the future to lead out of the slowdown and continue to deliver long-term value for our shareholders.
“Globally across 3M, we continue to fight the pandemic from all angles and help ensure the safety of our employees, healthcare workers and first-responders, and the public. I remain incredibly proud of how our team is leading through these unprecedented times, and I thank all 3Mers for their tireless efforts.”
3M said it will continue to keep its 2020 financial guidance withdrawn due to the uncertainties caused by the pandemic.
MMM shares were down -4.9% at $155.30 per share in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -0.64%.