second-quarter earnings rose 25% from a year ago on a 9.5% jump in worldwide sales, and the consumer products giant said earnings for the rest of 2004 should be roughly consistent with existing estimates.
The St. Paul, Minn.-based
component earned $773 million, or 97 cents a share, in the three months to June 30, up from $619 million, or 77 cents a share, last year. Revenue was $5.01 billion in the latest quarter compared with $4.6 billion a year ago.
Analysts surveyed by Thomson First Call had been forecasting earnings of 96 cents a share on revenue of $5.15 billion. Looking ahead, 3M expects to earn 97 cents a share in the current third quarter and $3.72 to $3.75 a share for all of 2004. Analysts had been forecasting earnings of 98 cents a share in the third quarter and $3.75 a share for the full year.
At about $87, the stock costs 23.2 times the high end of its 2004 range.
The second-quarter earnings gain was driven by a strong overseas performance and companywide cost control. Sales outside the U.S. were $3.04 billion, up 14.4% from a year ago on a 10.9% jump in volume. Currency translation added 4.8% to overseas sales.
By segment excluding currency benefits, worldwide sales rose 18.2% in display and graphics, 10.4% in industrial products, 4.8% in electro and communications, 4.3% in transportation, 4.2% in consumer and office, 3.4% in safety, security and protection and 0.3% in health care.