MAPLEWOOD (dpa-AFX) - Diversified manufacturer 3M Company (MMM) Thursday reported higher second-quarter profit, on positive organic sales growth across all of its businesses and geographic regions. Earnings per share met analysts' expectations, while revenues came above view. The company also confirmed its outlook for full year 2014.
For the second quarter, net income attributable to the company increased to $1.27 billion or $1.91 per share from $1.20 billion or $1.71 per share in the previous year.
On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $1.91 for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 4.9 percent to $8.13 billion from $7.75 billion in the same quarter last year. Ten analysts estimated sales of $8.09 billion.
Organic local-currency sales grew 4.8 percent, acquisitions added 0.1 percent to sales and currency impacts were flat year-on-year.
In Electronics and Energy business, organic local-currency sales increased 6.4 percent, and the growth was 5.1 percent in Health Care. In Industrial, and Safety and Graphics, the increase was 4.7 percent. Consumer sales improved 4.2 percent in the quarter.
On a geographic basis, organic local-currency sales grew 6.6 percent in Asia Pacific, 4.8 percent in EMEA, 4.5 percent in the U.S. and 2.7 percent in Latin America/Canada.
Inge Thulin, chairman, president and chief executive officer of the company said, 'Organic sales growth was again positive across all businesses and geographic regions which helped drive double-digit growth in earnings per share. Strong productivity fueled increased growth investments, and operating margins increased year-on-year to nearly 23 percent.'
For full-year 2014, the company still expects earnings of $7.30 to $7.55 per share and organic local-currency sales growth of 3 to 6 percent. Foreign currency impacts are expected to reduce sales by about 1 percent for the year.
Analysts are looking for earnings of $7.47 per share for the year.
On July 16, the company announced acquisition of the remaining 25 percent of its Sumitomo 3M subsidiary in Japan for a purchase price of $885 million.
MMM is currently trading at $145.89, up 0.84 percent.
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