3M Earnings Little Changed

It guides the third quarter and year in line with estimates.
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(MMM) - Get Report

reported second-quarter earnings Monday that were about the same as last year, hurt by a charge to repatriate overseas earnings.

The conglomerate earned $776 million, or $1 a share, in the quarter, compared with $773 million, or 97 cents a share, last year. Excluding the repatriation charge, 3M earned $851 million, or $1.09 a share, in the quarter. Sales rose 5.6% from a year ago to $5.3 billion.

Analysts had forecast precharge earnings of $1.09 a share on sales of $5.3 billion.

Among its divisions, 3M said second-quarter sales rose 6.1% in health care, 7% in industrial, 9% in consumer and office, and 9.6% in safety, security and protection. In each case, currency translation added between 2 and 3 percentage points to the gain. Sales fell 2.2% from a year ago in 3M's display and graphics segment.

3M said it expects third-quarter earnings of $1.06 to $1.08 a share, including dilution of 3 cents a share related to an acquisition. Analysts surveyed by Thomson First Call were expecting $1.09 a share. For the year, 3M sees earnings of $4.20 to $4.25 a share, before items. Analysts were predicting $4.23 a share.

"We anticipate that increased global demand for flat panel displays, particularly LCD televisions, will improve second-half sales of LCD enhancement films and fuel higher growth in our display and graphics business," the company said.

The shares added 7 cents to $75.52 early Monday.