Business InsiderTop News

3M 1Q Earnings Boosted by Health Care Division

imageStock Markets12 hours ago (Apr 28, 2020 06:33AM ET)

3M Earnings, Revenue Beat in Q1

Investing.com – 3M (NYSE:MMM) impressed with its first quarter earnings Tuesday, helped by strong growth in its health-care division in the wake of the coronavirus pandemic.

3M announced earnings per share of $2.16 on revenue of $8.08 billion, ahead of expectations EPS of $2.03 on revenue of $7.91 billion. This compared with EPS of $2.23 on revenue of $7.86 billion in the same period a year ago.

At 6:55 AM ET (1055 GMT), shares in 3M are trading 1.6% higher premarket.

“Given the breadth and diversity of our businesses, the financial impact of Covid-19 is varying across 3M,” said Mike Roman, 3M chairman and chief executive officer. “In the first quarter we saw strong growth in personal safety, as well as in other areas of our portfolio experiencing high demand due to the pandemic. At the same time, we experienced weak demand in several end markets that were more severely impacted by actions taken around the world to slow the pandemic.”

3M decided to withdraw its previously communicated full-year 2020 outlook given the evolving and uncertain impact of the Covid-19 pandemic, and will reduce its full-year 2020 cap-ex plan to approximately $1.3 billion versus $1.6 to $1.8 billion, previously.

The company added that it was prioritizing organic investments and the dividend, but had suspended its share repurchase program.

“Demand for 3M’s industrial products is getting hit from all directions after the Covid-19 pandemic. Plunging rates of domestic car production, collapsing shale-drilling activity and slack demand from China will all weigh on 3M future growth,” said Haris Anwar, an analyst at Investing.com.

“That strain could be countered somewhat by the health-care division, a recent bright spot as countries line up to secure supplies of masks and ventilators. But that business alone isn’t going to be a game-changer for the company which is in a deep downturn mode.”

3M shares are down 12% from the beginning of the year. They are under-performing the S&P 500 which is down 11.29% year to date.

3M 1Q Earnings Boosted by Health Care Division

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Close
Close

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!