3M raises profit forecast after quarterly beat on electronics demand

An uptick in demand for electronics used in vehicles and mobile phones boosted profit for the company

3M Co raised the lower end of its full-year adjusted profit forecast on Tuesday (Oct 22), after strong demand for its electronics and industrial products helped the US conglomerate beat quarterly profit estimates.

An uptick in demand for electronics used in vehicles and mobile phones boosted profit for the company, which had been grappling with a slowdown as high inflation led consumers to postpone big-ticket purchases.

The broader industrial sector is also expected to benefit from a boost to consumer spending after the US Federal Reserve cut borrowing costs in September, analysts said.

3M has cut jobs and spun off its healthcare business into a listed company in recent quarters to mitigate the impact from a demand slowdown.

Sales in its transportation and electronics segment, which makes display materials for mobile phones and automobiles, increased by 1.8 per cent from a year earlier.

In its safety and industrial segment, which makes adhesives for industrial use, sales went up by 0.5 per cent from a year earlier.

The company reported an adjusted profit of US$1.98 per share for the third quarter, compared with US$1.68 per share a year earlier.

St Paul, Minnesota-based 3M now expects its full-year adjusted profit to be between US$7.20 and US$7.30 per share, compared with its previous forecast of US$7.00 to US$7.30 per share. REUTERS