3M (MMM) released quarter earnings and raised its full-year forecasts as demand increased across major segments as economies prepare to bounce back from the impact of the COVID-19 pandemic. The company caters to industries like automotive, aerospace, and oral care has witnessed a sharp rise in demand as countries get vaccinated and restrictions ease.
3M now expects a raw materials and logistics charge of between 65 cents and 80 cents per share in 2021, higher from its prior forecast of 30 cents to 50 cents per share, as natural disasters in China and Germany, a fresh wave of infections, and a cyberattack targeting key South African ports drive global supply chains towards breaking point. Sales in the health care business, involved in Clarity teeth aligners and RelyX dental cement, increased about 25% to $2.3 billion. Sales in the transportation and electronics business, that make sound-absorbing materials for vehicles, increased 28% to $2.5 billion in the quarter. The above two units contributed to more than half of 3M’s overall sales in the quarter.
Net income rose 16.7% to $1.52 billion, or $2.59 per share, in the quarter, ahead of analysts’ average estimate of $2.28 per share. Net sales increased 25% to $8.9 billion. 3M raised its annual sales growth outlook to a range of 7% to 10%, higher than its prior forecast of 5% to 8% growth. The company also increased its 2021 earnings per share outlook to between $9.70 and $10.10, from the prior range of $9.20 to $9.70.
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