St. Paul, MN, Oct. 20- 3M Co.'s third-quarter profit rose 22%, driven by cost-cutting measures and improved productivity as six of its seven businesses saw higher sales volumes.
The industrial company said Monday that net income rose to $663 million, or 83 cents a share, from $545 million, or 69 cents a share, a year ago. Year-earlier results reflect a 2-for-1 stock split.
Revenue rose 11% to a best-ever $4.62 billion, topping analysts' consensus estimate of $4.51 billion, from $4.14 billion.
Wall Street was expecting the company to earn 79 cents a share, according to Thomson First Call, which polled 15 analysts.
3M again raised its full-year profit forecast, as it had in August, saying it now expects to earn $2.98 to $3 a share. The company had said it would likely earn a split-adjusted $2.88 to $2.95 a share for the year.
Excluding charges relating to litigation and restructuring, 3M expects to earn $3.05 to $3.07 a share. On this basis, Wall Street expects the company to earn $3.01 a share for the year.
For the fourth quarter, 3M anticipates profits will increase to a range of 73 cents to 75 cents a share from 65 cents a share in the period last year. Wall Street predicts the company will earn 73 cents a share.
"We are confident in our ability to sustain sales, earnings and cash momentum despite the ongoing uncertainties in the global marketplace," Chairman and Chief Executive W. James McNerney Jr. said in a statement.
The results of 3M, a component of the Dow Jones Industrial Average, are viewed as an indicator of broader economic trends because of the company's diverse product lines, which include consumer goods such as Scotch tape and bandages, as well as industrial abrasives and adhesives.
3M's third-quarter sales outside the U.S. rose 18% to $2.63 billion, while domestic sales climbed a more modest 3.7% to $1.99 billion.
The company said the effects of a weak dollar increased world-wide sales by 3.9% in the third quarter as selling prices fell 0.3%. Currency translation effects increased international sales by 7.2%.
Overall sales volumes increased 7.8%, of which 2% stemmed from acquisitions.
3M said sales at its health-care unit grew 12% to $1.01 billion. Sales at the display and graphics unit, aided partly by acquisitions, jumped 35% to $772 million.
Sales increases in other units were: 4.1% for industrial; 7.1% for consumer and office; 14% for safety, security and protection services; and 9.9% for transportation. Only 3M's electro and communications division posted a decline, sliding 1.3%.
