Third-quarter profits for the healthcare business at 3M (NYSE:MMM) slipped as the corporate parent today reported flat sales and narrowed its earnings outlook for the rest of the year.
3M Healthcare put up operating income of $429 million, down -0.7%, on sales growth of 1.1% to $1.36 billion. 3M itself logged profits of $1.33 billion, or $2.15 per share, on sales of $7.71 billion for the 3 months ended Sept. 30, for bottom-line growth of 2.5% on flat sales growth compared with Q3 2015.
Although the results met or beat the consensus expectations on Wall Street, 3m narrowed its guidance for EPS of $8.15 to $8.20, compared with prior guidance of $8.15 to $8.30. Organic sales on a constant-currency basis are now forecast for no growth, compared with the prior outlook for 0% to 1%.
“Our 3rd quarter was marked by increased earnings, robust cash flow and a strong, broad-based margin performance – with each of our business groups posting margins of 22% or greater,” chairman, president & CEO Inge Thulin said in prepared remarks. “At the same time, we continued to execute on business transformation while taking several actions to strengthen and focus our portfolio. We were also pleased to celebrate our company’s 100th consecutive year of paying dividends, which we’ve increased for each of the last 58 years.”
Declining sales for the healthcare division were countered by growth in the Asia-Pacific, Latin American, Canadian and EMEA markets, 3M said.
MMM shares were down -3.0% to $166.23 apiece today in mid-afternoon trading.
