3M Co. (MMM) - Get Report posted weaker-than-expected second quarter earnings Tuesday, and declined to reinstate its full-year profit guidance, as coronavirus shutdowns of businesses around the world hammered industrial sales.
3M said adjusted profits for the three months ending in June were pegged at $1.78 per share, down 19% from the same period last year and 2 cents shy of the Street consensus forecast. Group revenues, 3M said, slumped 11.9% to $7.2 billion, again missing analysts' forecasts of a $7.32 billion tally.
“While our results were significantly impacted by the global economic slowdown, we executed well, managed our costs and delivered another quarter of robust cash flow,” said CEO Mike Roman. “We are taking actions to navigate near-term challenges, while relentlessly innovating for our customers and investing for the future to lead out of the slowdown and continue to deliver long-term value for our shareholders.
“Globally across 3M, we continue to fight the pandemic from all angles and help ensure the safety of our employees, healthcare workers and first-responders, and the public,” he added. “I remain incredibly proud of how our team is leading through these unprecedented times, and I thank all 3Mers for their tireless efforts.”
3M shares were marked 4.8% lower in early trading following the earnings release to change hands at $155.39 each, a move that would extend the stock's year-to-date decline to around 12%.
Earlier this Spring, 3M pulled its full-year profit guidance and cut its capital expenditure plans amid the peak of the coronavirus pandemic, even as it posted stronger-than-expected first quarter earnings of $2.16 per share and revenues of $8.1 billion.
The group also said it will keep its cash dividend in place, but suspended its share buyback plans and scrapped its 2020 profit forecast.