3M on Friday reported higher sales and a sharp drop in earnings in its fiscal second quarter.
On an adjusted basis, however, organic growth, operating margin and earnings per share all increased, and the company raised its earnings forecast for the full year.
The Minnesota industrial product maker said it posted Q2 sales of $6.3 billion, up 1.4% compared to the same period last year, including organic sales that rose 0.6% over that span. Its operating margin of 18% was off by 230 basis points year-over-year, while earnings slipped by 38% down to $1.34 per share.
3M’s quarterly adjusted sales of $6.2 billion, meanwhile, included organic growth at a 1.5% clip, and a newly issued full-year outlook raised its earnings per share projections from an earlier $7.60 to $7.90 up to $7.75 to $8 — the latter, officials noted, including the impact of tariffs.
Reports suggested that the improved outlook followed the U.S.’s signing of a trade deal with China.
“Our 3M eXcellence operating model is the foundation for delivering on each of our strategic priorities, and it drives the operating rigor and rhythm of our performance culture,” Chairman and CEO William Brown said in a statement. “With execution improving and solid results in the first half, we have confidence in our increased full-year EPS guidance.”
