3M tops Q2 estimates, slashes outlook

Manufacturing giant 3M (NYSE: MMM) on Thursday reported better-than-expected second-quarter results, sending its shares up 3% during pre-market trading.

Hurt by weakness in key markets, Q2 sales were down 2.6% to $8.2 billion. However, this was better than the street projection of $8.03 billion.

During the quarter, sales saw an uptick only in the US, while all other markets witnessed declines. Segment-wise, only the Health Care unit reported year-over-year growth, while all others reported declines.

Earnings, on an adjusted basis, fell 28% $2.20 per share, but surpassed average analysts’ estimate by 17 cents.

CEO Mike Roman said, “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.”

READ: ServiceNow beats market estimates in Q2, but valuation bites stock price

Outlook slashed

Taking into account charges related to the deconsolidation of its Venezuelan subsidiary, the company now expects  2019 GAAP earnings in the range of $8.25 to $8.75 per share, lower than the prior estimate of $8.53 to $9.03 per share.

Meanwhile, it maintained its full-year 2019 adjusted earnings expectation to be in the range of $9.25 to $9.75 per share.

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