3M narrows FY earnings guidance on supply chain issues

Post-It maker 3M posted a jump in third-quarter sales on Tuesday but downgraded its earnings guidance for the year to reflect global supply chain disruptions.

Revenue rose 7.1% on the year in the third quarter to $8.9bn. Net income came in at $1.434bn versus $1.43bn the year before, while earnings per share were steady at $2.45. Analysts had been expecting EPS of $2.20.

The group also updated its annual guidance. It now expects EPS of between $9.70 and $9.90, compared to a previous forecast of $9.70 to $10.10, and total sales growth of between 9% and 10% versus 7% to 10% previously. Organic local currency sales growth is now seen at between 8% and 9% compared to previous guidance for between 6% and 9%.

Chairman and chief executive Mike Roman said: "In the face of continued global challenges, the 3M team executed well and delivered broad-based organic growth, along with strong margins and cash flow.

"Overall, end-market demand remained strong, and we navigated supply chain disruptions by maintaining a relentless focus on serving and innovating for our customers. Moving ahead, we will continue to invest for the future by investing in strong demand areas aligned with global trends, while improving our operational performance, driving productivity and advancing sustainability."