3M shares soar as strong results highlight cost cuts, growth push
Adds graphic
By Kannaki Deka
July 26 (Reuters) -3M's MMM.N shares soared to a near two-year high on Friday following the industrial conglomerate's quarterly results that underscored its focus on investing in high-growth businesses and reigniting the company's storied history of product innovation.
3M's shares, which rose as much as 20%, were on track for their best day ever after the company also raised its full-year profit forecast, benefiting from a spate of cost cuts.
CEO Bill Brown, who succeeded Mike Roman on May 1, said his top priority is to increase sales and "reinvigorate the 3M innovation machine".
"The simple fact is our products are aging," Brown said on his first earnings call.
Brown addedthe amount invested in new product development has declined over the years as the company shifted resources to exit "forever chemicals" manufacturing and work to reduce supply chain cost.
3M shifted its focus to high-growth businesses such as automotive electrification and growth areas such as climate technology, while exiting less-profitable consumer product lines to drive growth amid slow demand.
The maker of Post-it notes has also benefited from steady price increases across categories, which have helped it offset inflation and weakness in its consumer business.
An additional fillip came from restructuring measures to streamline the business and reduce costs.
Brown said he would take a "fresh dispassionate look" at the company's portfolio to ascertain what assets might be a good fit for 3M.
"This looks like a good start to a new era for 3M," Wolfe Research analyst Nigel Coe said.
The company expects full-year adjusted profit to be between $7.00 and $7.30 per share, above its previous forecast of $6.80 to $7.30.
It reported an adjusted profit of $1.93 per share for the quarter, above analysts' average estimate of $1.68, according to LSEG data.
Second-quarter adjusted revenue of $6 billion also came in above estimates of $5.88 billion.
Shares of 3M over the past year https://reut.rs/3yiEmBh
Reporting by Kannaki Deka in Bengaluru; Editing by Arun Koyyur and Maju Samuel
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
