St. Paul, MN, October 18--3M Co. reported profits in the third quarter that were up nearly 17 percent despite increasing raw material price pressure, but fell short of Wall Street earnings and sales expectations.
Quarterly earnings rose to $775 million, or 97 cents per share, from $663 million, or 83 cents per share, in the third quarter of 2003. Analysts surveyed by Thomson First Call were looking for the company to post earnings of 98 cents per share on sales of $5.05 billion.
Worldwide net sales totaled $4.97 billion, up 7.6 percent from last year. Sales outside the United States rose 10.8 percent to $2.91 billion. Volumes increased 7.5 percent, while selling prices declined 1.1 percent. In the United States, sales totaled $2.06 billion, up 3.5 percent from the year-ago period. Volumes increased 3.2 percent, and selling prices increased by 0.3 percent.
Looking ahead, the company expects fourth quarter earnings to range between 90 cents to 91 cents per share, excluding the potential one time impact of pending legislation to encourage the reinvestment of foreign earnings in the United States and the impact of anticipated accounting changes. Full year profits excluding items are projected to be $3.74 to $3.75 per share, at the high end of previous estimates of $3.72 to $3.75 per share.
Analysts are looking for quarterly and full year earnings of 92 cents and $3.77 per share.
Including these items, 3M forecasts fourth-quarter earnings of 84 cents to 85 cents per share. Full year earnings, including these potential adjustments, are expected to be $3.68 to $3.69 per share. 3M expects full year sales volume growth of about 7 percent.
