Chicago, IL, Jan. 20--Diversified manufacturer 3M Co. said Tuesday its quarterly earnings rose 21 percent helped by increased productivity and sales and forecast 2004 earnings at the high end of Wall Street analyst estimates.
3M, whose products range from Post-It notes and Scotch tape to asthma-drug inhalers and fiber optics products, said its fourth-quarter net income increased to $619 million, or 77 cents a share, from $511 million, or 65 cents, a year ago.
Results beat the average analyst estimate of 76 cents a share, according to Reuters Research, a unit of Reuters Group Plc, as well as the company's October forecast.
Sales increased 14 percent to $4.72 billion from $4.14 billion in the year-earlier quarter.
3M said its gains in the quarter were broad-based, with sales increasing in all of the company's seven sectors. Five of the areas boosted operating income, with consumer and office flat and industrial posting a slight drop.
Its display and graphics unit, which makes a brightness-enhancement film used in flat-panel televisions and handheld electronics, again turned in the strongest performance. Sales rose 38.4 percent and operating income skyrocketed 96 percent.
The weaker U.S. dollar, which makes foreign profits and revenues worth more when they are translated for financial reporting purposes, boosted worldwide sales by 6.6 percent, the company said.
It projected 2004 earnings of $3.46 to $3.52 a share, up from $3.02 a share last year.
The company said it is still expecting per-share earnings to rise 12 percent to 14 percent, in line with its previous outlook.
3M also said it expects sales volumes to increase between 5 percent to 8 percent next year.
Analysts have been expecting the St. Paul, Minnesota-based company to earn between $3.30 to $3.55 a share in 2004, with an average estimate of $3.47, according to Reuters Research.
For the first quarter, 3M said it expects to earn 80 cents to 82 cents a share. Analysts' estimates have averaged 80 cents a share, according to Reuters Research.
