Profits for the healthcare unit at 3M Co. (NYSE:MMM) rose during the 2nd quarter, despite a nearly -4% top-line slide, the industrial conglomerate said today.
St. Paul, Minn.-based 3M Healthcare posted operating profits of $440 million on sales of $1.36 billion for the 3 months ended June 30, representing profit growth of 1.4% despite a -3.7% top-line dip.
Overall, 3M reported profits of $1.30 billion, or $2.02 per share, on sales of $7.69 billion for the quarter, beating Wall Street’s earnings expectation of $2 per share but falling short of analysts’ expectations for revenues of $7.83 billion.
“In the face of a mixed economic environment, the 3M team delivered positive organic growth in all geographic areas while expanding worldwide margins by over a full point,” chairman, president & CEO Inge Thulin said in prepared remarks. “We also continued to invest in our future, including strategic acquisitions. In June, we announced the acquisition of Capital Safety, which will bolster our personal safety platform and build on our fundamental strengths in technology, manufacturing, global capabilities and brand.”
3M lowered the top end of its 2015 earnings guidance, saying it now expects to report per-share earnings of $7.80 to $8.00, compared with prior guidance of $7.80 to $8.10 per share. The company also lowered its sales outlook, saying it now expects organic, constant-currency sales growth of 2.5% to 4%, versus prior guidance for 3% to 6%.
MMM shares dipped 2.6% to $151.44 apiece in late-morning trading today.