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3M Releases Q3 Earnings – Raising Prices Amid Inflation & Logistics Issues

By John F. Heerdink, Jr.

3M (MMM) reported third-quarter earnings, reporting a better-than-expected quarterly profit and revenue riding on sales growth across its business units.  Post-It notes to industrial sandpaper Maker, 3M, informed it would increase product prices to deal with inflationary and supply chain pressures troubling U.S. manufacturers. Higher costs related to polypropylene, ethylene, resins, and labor strained the market, it added that the global semiconductor crunch would continue to concern its automotive and electronics end-markets.

3M forecast’s a hit of 80 cents to 90 cents to full-year earnings from raw material and logistics costs. Net income in the third quarter increased marginally to $1.434 billion, or $2.45 per share, exceeding analysts’ average estimate of $2.20 per share. Net sales also increased 7.1% to $8.94 billion, beating expectations of $8.67 billion. Its third-quarter disposable respirator sales dropped 7%.

“Inflation has come in faster than anybody thought.We don’t see the raw material or the inflation environment slowing down in any way,” stated Chief Financial Officer Monish Patolawala.

Annual sales are now expected to grow between 9% and 10%, higher than the prior forecast of 7% to 10%. The industrial giant informed that 2021 earnings per share are forecast to come in between $9.70 and $9.90, versus its earlier prediction of $9.70 to $10.10.

 
3M (MMM) is a global science company that seems to never stop inventing. Using 46 technology platforms, their integrated team of scientists and researchers works with customers to create breakthroughs. Their inventions have improved daily life for hundreds of millions of people all over the world. With $30 billion in sales, 90,000 employees connect with customers all around the world. Scientists, researchers, and marketers work across countries and across subjects to solve challenges big and small. To learn more about 3M (MMM) and to track its ongoing progress please visit the  Vista Partners 3M (MMM), Coverage Page.


Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. 

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(Read Original Story: Industrial giant 3M to hike prices as inflation, logistics woes bite in Reuters)


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