ST. PAUL, Minn. (
raised its 2011 outlook after topping first quarter profit and sales expectations thanks to strength in emerging markets like China and India.
Looking ahead, 3M, maker of Scotch tape, Post-It notes, industrial abrasives and healthcare and electronics products, said it now expects a 2011 profit between $6.05 and $6.25 per share, compared with its prior forecast for earnings between $5.95 and $6.20 a share. Analysts, on average, were looking for 3M to book a profit of $6.22 per share this year.
3M shares jumped 2.1% to trade at $96.07 Tuesday afternoon following the earnings beat and improved guidance. Nearly 5 million shares changed hands with more than three hours left in the trading session, compared with their average daily volume of just 3.7 million.
A roster of industrial multinationals, including
Illinois Tool Works
, bearings maker
, engine maker
, farm equipment producer
and filter maker
, all reported better-than-expected quarterly results as well, each citing strength overseas and an uptick in U.S. auto and truck production.
"International growth has been good for these companies, especially in emerging markets," Edward Jones analyst Jeff Windau told
"Most of these companies have been able to manage their costs and have been pretty successful at passing prices on, which we're a little cautious on moving forward," he said. "
Commodity prices remain high, but estimates coming into the quarter overestimated their impact on earnings."
3M said sales from emerging markets made up more than a third of its total revenue last quarter. Sales in India soared more than 30%; China and Hong Kong saw revenue grow 27%; and Brazil sales rose by 25%.
In Japan, where 3M generates about 9% of its sales, first-quarter profits were reduced by 3 cents per share as a result of the catastrophic earthquake and tsunami that hit the region in early March.
Full-year earnings will be reduced by a range between 10 cents and 13 cents per share, 3M said.
In the recent quarter, 3M earned $1.08 billion, or $1.49 per share, up 16.1% from a year-earlier profit of $930 million, or $1.29 per share. Sales rose 15% to $7.31 billion.
Analysts had expected 3M to earn $1.04 billion, or $1.44 per share, on sales of $6.95 billion.
-- Written by Miriam Marcus Reimer in New York.
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