3M Sees 2Q Earnings Before Items Below Earlier Gui
St. Paul, MN, July 7, 2006--3M Inc. said it expects earnings excluding items for the second quarter to miss its previous outlook due to lower than expected sales volumes and higher than anticipated new capacity start-up costs in its optical systems division.
The company now sees earnings of $1.14 to $1.17 a share for the quarter, including net gains of 8 to 10 cents a share. It said the gains are related to income tax adjustments, partially offset by settlement costs from an antitrust class action and expenses stemming from the exploration of strategic options for its pharmaceuticals business.
3M sees sales of about $5.7 billion for the second quarter, a performance representing an increase of 7.5% to 8% from its year-ago total. The company expects organic local currency sales growth, which excludes the impact of acquisitions, divestitures and foreign currency fluctuations, to be near the low end of its previous outlook for growth of 5% to 8%.
On April 24, 3M said it expects earnings of $1.14 to $1.17 a share for the second quarter, including 8 cents a share in stock option expensing. Analysts had forecast profit of $1.17 a share in the June period.
For the full year, the company now sees earnings of $4.55 to $4.65 a share, including the net gains of 8 to 10 cents a share. Wall Street's current consensus estimate is for a profit of $4.66 a share for fiscal 2006.
