Shares in 3M Cos. (NYSE:MMM) took a hit today despite the industrial conglomerate’s Street-beating second-quarter results, with its healthcare business the only division to show growth.
The Twin Cities-based company posted profits of $1.13 billion, or $1.92 per share, on sales of $8.17 billion for the three months ended June 30, for a bottom-line slide of -39.3% on a sales decline of -2.6% compared with Q2 2018.
Adjusted to exclude one-time items, earnings per share were $2.20, a full 15¢ ahead of Wall Street, where analysts were looking for sales of $8.03 billion.
“I am encouraged by our company’s progress and performance in the second quarter,” chairman & CEO Mike Roman said in prepared remarks. “Our execution was strong in the face of continued slow growth conditions in key end markets, as we effectively managed costs and improved cash flow. Moving ahead we remain focused on continuing to drive operational improvements, investing for the future and delivering for our customers and shareholders.”
3M stood pat on its forecast for the rest of the year, saying it still expects to log adjusted EPS of $9.25 to $9.75, despite a 28¢-per-share charge incurred when it shut down operations in Venezuela, on sales growth of -1% to 2%.
MMM shares were off -0.9% to $177.87 each today in early afternoon activity.
Sales, operating profits rise for healthcare biz
3M’s healthcare business put up operating profit growth of 2.8%, to $483 million, on sales growth of 5.8% to $1.83 billion, the company said.
The sales growth was driven by its health information systems, medical solutions, food safety and oral care units, offset by a decline in its drug delivery segment, 3M said.
