3M's Tilloy plant, in Tilloy-Lez-Cambrai, France, on Aug. 18, 2019.Pascal Rossignol/Reuters
3M Co MMM-N forecast profit growth for 2025 and beat fourth-quarter estimates as the U.S. industrial conglomerate benefited from efforts to revive sales and reduce costs, sending its shares up 4.6 per cent on Tuesday.
Its total operating expenses fell 44 per cent in 2024 from a year earlier.
“3M’s fourth-quarter results and guidance are a win for investors,” CFRA Research analyst Jonathan Sakraida said, adding that organic sales growth, a key area of focus under new CEO Bill Brown, accelerated to 2.1 per cent, indicating early progress in the firm’s topline course correction.
Brown laid out a plan in July to improve sales by developing new products, redirecting spending from the company’s earlier priorities of mitigating legal liabilities and reducing supply-chain costs.
For the first time in nine quarters, all three of 3M’s business segments recorded adjusted organic sales growth.
The Scotch Tape maker expects 2025 organic sales growth in the range of 2 per cent to 3 per cent, above analysts’ expectations of 1.6 per cent, according to data compiled by LSEG.
The Saint Paul, Minnesota-based company has posted upbeat results in recent quarters after suffering a slump in consumer demand in 2023 due to high inflation and a weak China market.
To mitigate the impact from the demand slowdown, 3M cut more than 8,500 jobs, reduced office spaces by 12 per cent and spun off its health care business into a listed company.
It forecast 2025 adjusted profit of between $7.60 and $7.90 per share, largely in line with expectations of $7.77.
Its fourth-quarter adjusted profit of $1.68 per share beat estimates of $1.66, while adjusted revenue rose 2.2 per cent to $5.81-billion, above estimates of $5.78-billion.