- 3M Co.
- 21 January 2025 14:41:28
Source: Sharecast
The industrial giant said it expected adjusted earnings per share to range between $7.60 and $7.90, aligning closely with analysts' expectations, which averaged $7.78.
That followed a year in which cost-cutting measures and productivity improvements boosted per-share profit by 21% to $7.30.
It said its fourth-quarter results met or slightly exceeded market expectations, with adjusted earnings of $1.68 per share surpassing analysts' estimates of $1.66.
Revenue for the period rose marginally to $6.01bn, ahead of the $5.78bn consensus forecast.
All three of 3M's business segments recorded organic growth, with new product launches increasing by 32% over the year, exceeding the company's targets.
Brown's turnaround strategy, which includes accelerating product development and reducing operational inefficiencies, had driven a more-than-56% rise in 3M's stock over the last 12 months, significantly outperforming the broader market.
The restructuring effort had also led to a 44% reduction in total operating expenses in 2024 compared to the prior year.
Since 2023, 3M had cut more than 8,500 jobs, reduced its office space by 12%, and spun off its healthcare division into the newly-listed Solventum Corporation.
Looking ahead, 3M projected organic sales growth of up to 3% in 2025, compared to the 2.9% anticipated by analysts.
The company said it expected modest growth in the US and EMEA regions, and mid-single-digit expansion in China.
However, 3M remained cautious about certain end markets, citing a slight decline in automotive production and modest improvements in consumer electronics demand.
Brown had prioritised investment in high-growth areas such as electric vehicles, data centres, and semiconductors while addressing legacy challenges, including legal settlements related to ‘forever chemicals’ and military earplugs.
The company recently entered a licensing agreement with US Conec to expand its presence in the data centre market.
In addition to operational changes, 3M had introduced a new hybrid work policy, requiring senior-level employees to be in the office three days a week in a bid to foster collaboration.
The company was also planning to repurchase about $1.5bn in shares in 2025 as part of its ongoing efforts to enhance shareholder value.
At 0935 EST (1435 GMT), shares in 3M Company were up 4.81% in New York at $147.81.
Reporting by Josh White for Sharecast.com.