3M raises annual forecasts on pandemic recovery, warns of higher costs By Reuters

(Reuters) – 3M (NYSE:MMM) Co reported a better-than-expected quarterly profit and raised its full-year forecasts, helped by increased demand across major segments as economies recover from the impact of the COVID-19 pandemic.

The company, which caters to industries including automotive, aerospace and oral care, has seen a sharp rise in demand following vaccine rollouts and easing restrictions.

Shares of the maker of N95 face masks and Scotch-Brite home care products rose just marginally, coming under pressure from the company’s comment that it was facing higher logistics and raw material costs.

A fresh wave of infections, natural disasters in China and Germany and a cyber attack targeting key South African ports drive global supply chains towards breaking point.

3M said it now expects a raw materials and logistics charge of between 65 cents and 80 cents per share in 2021, up from its prior forecast of 30 cents to 50 cents per share.

In the second quarter, sales in health care business, which makes Clarity teeth aligners and RelyX dental cements, jumped about 25% to $2.3 billion.

Sales in transportation and electronics business, which makes products including sound absorbing materials for vehicles, surged 28% to $2.5 billion in the quarter.

The two businesses made up more than half of 3M’s overall sales in the quarter.

The company raised its annual sales growth outlook to a range of 7% to 10%, from prior forecast of 5% to 8% growth.

It also increased its 2021 earnings per share outlook to between $9.70 and $10.10, from the prior range of $9.20 to $9.70.

Net income attributable to 3M rose 16.7% to $1.52 billion, or $2.59 per share, in the quarter, beating analysts average estimate of $2.28 per share, according to IBES data from Refinitiv.

Net sales rose about 25% to $8.9 billion.