3M earnings to fall short
Company expects its full-year earnings to disappoint analysts. Will investors forgive it?
By Joseph Woelfel, TheStreet
3M (MMM), which makes products ranging from tape to road signs, said Tuesday it expects 2009 earnings of $4.30 to $4.35 a share, less than the $4.57 estimate of analysts surveyed by Thomson Reuters.
Excluding items, 3M said its profit would be $4.50 to $4.55.
3M said it expects to earn $4.85 to $5 next year, while analysts predict a profit of $4.94. The St. Paul, Minn.-based company forecast revenue of $24.5 billion to $25.5 billion, with organic sales rising 5% to 7% and currency exchanges adding 2% to 3% to sales. Analysts forecast 2010 revenue of $24.46 billion.
3M is conducting an analyst meeting in New York Tuesday, where it will announce plans to "increase investment in research and development and new product development as a means to gain market share," 3M said in a press release.
Shares of 3M, a member of the Dow Jones Industrial Average, have climbed 40% this year, outperforming the 25% gain of the S&P 500 Index and the 22% advance of the Dow.
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The offering could become the second-biggest this year if underwriters exercise an option to buy more shares.
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