Shares of 3M Co. (NYSE:MMM) lost nearly 6 percent today after the conglomerate reported a 1.6 percent profit slide for the third quarter and slashed its sales and earnings guidance for 2011.
3M reported profits of $1.09 billion, or $1.52 per share, on sales of $7.53 billion. That’s a top-line increase of 9.6 percent compared with Q3 2010. Wall Street analysts expected $1.61 per share for the latest quarter.
MMM shares were down to $77.37 as of about 1:50 p.m. today, after opening at $76.88.
"The business environment remains challenging, as the economic softening that we experienced late in the second quarter continued into the third," chairman, president & CEO George Buckley said in prepared remarks (PDF). "Looking ahead, early evidence suggests slower growth will persist through year end, therefore we are responding to lower demand with aggressive cost management and operational discipline in developed economies. At the same time, we are bullish on many developing economies and plan to maintain key investments in R&D, sales and manufacturing to capitalize on underlying strength in those regions."
But the potential souring of the global economy still prompted 3M to cut its sales and earnings forecasts for the full year. The company now expects earnings of between $5.85 and $5.95 per share, down from $6.10 to $6.25. Sales growth is now pegged at 3 percent to 4 percent, rather than 6 percent to 7.5 percent.
The Minneapolis-area company’s health products arm, 3M Healthcare, did its part to buck the slide, contributing sales growth of 14.1 percent and operating profits of 12.9 percent. 3M Healthcare logged operating profits of $367 million on sales of $1.25 billion during the three months ended Sept. 30, compared with $325 million on sales of $1.09 billion during the same period last year.
The division’s sales grew at a double-digit clip across the globe during the quarter:
- Asia Pacific: +20%
- Latin America/Canada: +16%
- Europe: +13%
- U.S.: +12%
MassDevice keeps a close eye on public medical device companies, tracking their quarterly sales and earnings reports. For the most recent filings, check out our Earnings Roundup, where we collect each quarter’s reports.
Essilor’s Q3 sales rise 6.4%
Third-quarter sales for Essilor (EPA:EI) rose 6.4 percent to €1.04 billion (about $1.45 billion), compared with €977 million ($1.36 billion) during the same period last year.
The French optical device maker said it expects revenue growth of 6 percent to 8 percent for the full year.
Essilor spent about €11.3 million ($15.7 million) buying back 226,655 shares of its own stock between July and September. Read more
The company reported profits of $43.7 million, or $1.07 per diluted share, on sales of $371.9 million for the three months ended Sept. 25. That compares with profits of $22.2 million, or 55 cents diluted EPS, on sales of $345.0 million during the same period last year.
TFX said it expects sales of between $1.51 billion to $1.53 billion, up from $1.44 billion to $1.47 billion, but lowered the tope end of its adjusted EPS forecast to $4.05 to $4.10, down from $4.05 to $4.25. Read more
The sleep disorder firm reported profits of $50.5 million, or 33 cents diluted EPS, on sales of $314.8 million for the three months ended Sept. 30. That compared with profits of $56.7 million, or 36 cents diluted EPS, on sales of $282.0 million – a bottom-line slide of 10.9 percent despite an 11.6 percent increase in sales. Read more
Enteromedics’ operating losses more than double
EnteroMedics Inc.’s (NSDQ:ETRM)operating losses more than doubled during the third quarter, but the development-stage company still managed to reduce its diluted EPS loss.
Enteromedics, which is developing devices to treat bariatric conditions via nerve blocking, reported operating losses of $7.1 million, or 26 cents EPS, for the three months ended Sept. 30. That compares with operating losses of $4.4 million, or 59 cents EPS, during the same period last year.
The 55.9 percent reduction in EPS losses was due to an increased number of shares between the two quarters. Enteromedics had issued only 7,478 shares as of the end of Q3 2010, compared with 28,210 shares outstanding at the end of Q3 2011. Read more
Cynosure’s sales nearly double but losses increase almost 75%
Cynosure’s (NSDQ:CYNO) net losses increased by nearly 75 percent despite a nearly 50 percent increase in sales during the third quarter.
The cosmetic device maker posted losses of $792 million, or 6 cents per share, on sales of $28.3 million for the three months ended Sept. 30. That compares with losses of $460 million, or 4 cents per share, on sales of $19.1 million during the same period last year. Read more
The surgical instruments maker logged net losses of $469,000, or 7 cents per share, on sales of $3.3 million during the three months ended Sept. 30. That compares with losses of $145,000, or 2 cents per share, on sales of $2.9 million during the same period last year.
Young Innovations’ profits tick up despite flat sales
Dental devices maker Young Innovations Inc. (NSDQ:YDNT) posted profits of $4.1 million, or 51 cents EPS, on sales of $26.2 million for the three months ended Sept. 30.
That’s a 4.6 percent bottom-line increase compared with profits of $3.9 million, or 49 cents EPS, on sales of $26.4 million during the same period last year. Read more