3M Q3 revenues fall amid stronger US dollar
Consumer goods giant 3M posted a 4% fall in quarterly revenues on Tuesday as declining international earnings due to a stronger US dollar and divestitures both weighed on its performance.
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3M said third-quarter sales dropped roughly $300.0m to $8.6bn, while organic sales grew 2% year-on-year, including a 1.4 percentage point headwind stemming from a fall in disposable respirator demand.
Operating cash flow was $1.5bn, down 18%, while adjusted free cash flow was $1.4bn, down 16% year-on-year.
3M also downgraded its full-year sales and earnings guidance in order to reflect the continued strengthening of the greenback, with the Minnesota-based firm guiding for total sales to drop 3%-3.5% and adjusted earnings per share to come to $10.10-$10.35, down from 0.5%-2.5% and $10.30-$10.80, respectively.
Chairman and chief executive Mike Roman said: "Excluding the impact of the decline in disposable respirator sales, our team posted over 3% organic growth. We delivered sequential and year-over-year margin expansion, amidst macroeconomic challenges and the strengthening US dollar."
"We continue to position 3M for the future through investments for growth, productivity, and sustainability, along with active portfolio management."
As of 1245 BST, 3M shares were down 2.01% in pre-market at $116.0 each.
Reporting by Iain Gilbert at Sharecast.com