Updated from 8:21 a.m. EDT


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third-quarter earnings rose 17% from last year, spurred on by double-digit sales growth in its industrial segment. But the bottom line fell short of Wall Street estimates and the company issued guidance that also trailed the analyst consensus.

The stock fell $4.08, or 5.2%, to $73.90 early Monday.

3M earned $775 million, or 97 cents a share, in the three months ended Sept. 30, up from $663 million, or 83 cents a share, last year. Revenue rose 8% to $4.97 billion. Analysts had been expecting earnings of 98 cents a share on revenue of $5.05 billion.

The company expects to earn 90 cents or 91 cents a share in the fourth quarter, excluding a possible tax reserve and an accounting change that will together reduce earnings by 6 cents a share. Analysts were forecasting earnings of 92 cents a share in the quarter.

By segment, third-quarter sales rose 10.5% in 3M's industrial division; 7.7% in consumer and office; 6.6% in display and graphics; 6.4% in safety, security and protection; 3.7% in transportation; and 1.5% in electro and communications. Sales fell 0.8% from a year ago in health care.

"We are optimistic about the strength of our diverse business and technology portfolio, but remain cautious on the global economy," 3M said. "We have achieved strong earnings, cash flow and economic profit growth in 2004 despite increasing raw material price pressure, and are confident in our ability to leverage our corporate initiatives to drive sustainable revenue growth."