MAPLEWOOD (dpa-AFX) - Diversified manufacturer 3M Company (MMM), Thursday reported an increase in profit for the first quarter, as revenues grew across almost all segments. However, both earnings and revenues for the quarter fell short of Wall Street expectations.
St. Paul, Minnesota-based 3M's first-quarter profit rose to $1.21 billion or $1.79 per share from $1.13 billion or $1.61 per share a year ago. On average, 14 analysts polled by Thomson Reuters expected earnings of $1.80 per share for the quarter. Analysts' estimates typically exclude special items.
3M's sales for the quarter grew 2.6 percent to $7.83 billion from $7.63 billion a year ago. Eleven analysts had a consensus revenue estimate of $7.96 billion for the quarter.
Organic local-currency sales grew 4.6 percent while currency impacts reduced sales by 2.0 percent year-on-year.
Sales at all the segments increased year-over-year, except consumer division, which edged down 0.2 percent to $1.1 billion. Sales at industrial segment rose 3.1 percent to $2.8 billion, safety and graphics climbed 1.7 percent to $1.4 billion, health care improved 4.8 percent to $1.4 billion and electronics and energy increased 2.7 percent to $1.3 billion.
Chief Executive Inge Thulin said, 'Our teams delivered positive organic growth in all business groups and geographic areas, we posted strong margins across the portfolio and we returned a record amount of cash to shareholders.'
During the quarter, 3M paid $566 million in cash dividends to shareholders and repurchased $1.7 billion of its own shares.
Moving ahead, 3M maintained its full-year 2014 earnings outlook of $7.30 to $7.55 per share with organic local-currency sales growth of 3 to 6 percent. Analysts currently expect earnings of $7.46 per share for the year.
MMM is currently trading at $136.48, down $1.51 or 1.09%, on a volume of 1.37 million shares on the NYSE.
Copyright RTT News/dpa-AFX