While demand for goods has rebounded with massive stimulus and the reopening of economies, a labour shortage and soaring raw material prices have left U.S. manufacturers in the lurch.
Shares of 3M, however, were up 2.2 per cent at $186.43 premarket as the biggest maker of N95 masks reported a better-than-expected quarterly profit and revenue on the back of sales growth in all its businesses.
3M, which makes everything from Post-It notes and adhesives to industrial sandpaper, also said annual sales are now expected to grow between 9 per cent and 10 per cent, compared to a prior forecast of 7 per cent to 10 per cent.
Last month, the company pointed to inflation coming in higher than expected, with cost pressures in resins, wood pulp and labour.
3M now expects 2021 earnings per share between $9.70 and $9.90, versus its earlier forecast range of $9.70 to $10.10.
Third-quarter sales in the company’s safety and industrial unit grew 7.2 per cent to $3.24-billion, while that of its consumer unit grew 8.1 per cent to $1.53-billion.
Net income attributable to 3M rose marginally to $1.434-billion, or $2.45 per share, in the quarter ended Sept. 30.
Analysts on average expected the company to earn $2.20 per share, according to Refinitiv data.
Net sales rose 7.1 per cent to $8.94-billion, beating estimates of $8.67-billion.
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