3M Co. (MMM) posted stronger-than-expected second quarter earnings Thursday, and affirmed its full-year profit guidance, as its job cuts program reduced costs and boosted its bottom line.
3M said adjusted earnings for the three months ending in June came in at$2.20 per share, down 28.3% from last year but firmly ahead of the Street consensus of $2.04 per share. Group revenues, 3M said, fell 2.6% from last year to $8.2 billion, topping analysts' forecast of an $8.02 billion tally.
Looking into 2019, 3M said it sees adjusted full-year earnings in the range of $9.25 to $9.75 per share, unchanged from its prior forecast. GAAP earnings, however, are expected to be in the range of $8.25 to $8.75 per share, down from a prior expectation of $8.53 to $9.03 per share, owing to a 28 cent charge linked to the deconsolidation of its Venezuelan subsidiary.
"I am encouraged by our company's progress and performance in the second quarter," said CEO Mike Roman. "Our execution was strong in the face of continued slow growth conditions in key end markets, as we effectively managed costs and improved cash flow."
"Moving ahead we remain focused on continuing to drive operational improvements, investing for the future and delivering for our customers and shareholders," he added.
3M shares were marked 2.7% higher at the start of trading following the earnings release to change hands at $184.27 each, a move would trim the stock's year-to-date decline to around 1.5%.