NEW YORK (CNN/Money) -
Third-quarter profits jumped 38 percent at 3M Co., and while the diversified manufacturer said there was scant sign of an improved global economy, it gave new upbeat guidance Monday for results for the full year.
The maker of Post-it Notes, Scotch tape, industrial coatings and other products said net earnings rose to $545 million, or $1.38 a share, from $394 million, or 99 cents per share, a year earlier. Analysts surveyed by earnings tracker First Call had a consensus forecast of $1.38 a share.
Shares of 3M (MMM: Research, Estimates), a component of the Dow Jones industrial average, added $2.05 to $127.36 Monday afternoon.
On a conference call with analysts, 3M said it will take a $1 billion charge against shareholders' equity in the fourth quarter for its pension fund, Reuters reported. The company, based in St. Paul, Minnesota, had contributed $789 million cash to the fund in the most recent period.
"We are confident that our strong businesses, cash flow and balance sheet will allow us to easily support future pension funding needs without compromising our growth opportunities," Chief Financial Officer Patrick Campbell told analysts on the call, the news agency reported.
Revenue rose to $4.14 billion from $3.97 billion, edging past First Call's forecast of $4.11 billion. Most of the gain came from an 8.8 percent rise outside the United States. Domestic revenue was essentially flat.
The company's health-care unit and its transportation, graphics and safety division both had better than 10 percent revenue growth, while revenue fell in its speciality materials and electro and communications divisions. Consumer and office products revenue rose 1.7 percent.
In addition, 3M said it settled a large number of asbestos lawsuits during the quarter, reducing the number of claimants to 43,000 from 74,700, according to Reuters. It increased reserves for such litigation by $67 million to $178 million during the quarter as a result.
The company said it expects full-year earnings of $5.22 to $5.27 a share, excluding special items, up from $4.48 a share on a comparable basis in 2001. The new guidance is near the upper end of its earlier outlook of $5.15 to $5.30 a share. First Call's consensus forecast is for $5.25.
The new guidance equates to fourth-quarter EPS of $1.25 to $1.30 a share excluding special items, up from 98 cents a year earlier.
-- Reuters contributed to this report
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