3M tops forecasts, shares surge

Shares of the diversified manufacturer soar after it says net income rose to $1.4 billion and reaffirms outlook.


NEW YORK (CNNMoney.com) -- 3M, maker of Scotch tape, Post-it notes and other products, Thursday reported first-quarter earnings and revenue that beat analysts' forecasts and affirmed its full-year outlook, sending its shares up nearly 4 percent.

Shares of 3M (up $2.83 to $79.80, Charts, Fortune 500) jumped 3.8 percent in morning trading on the New York Stock Exchange.

The chemical and consumer products company said net income soared 52 percent to $1.4 billion, or $1.85 a share, which included $422 million of after-tax gains from special items.

Excluding the special items, earnings per share rose to $1.28, which beat analysts' forecasts of $1.12 before one-time items, according to Briefing.com.

Revenue rose to $5.9 billion, up 6.1 percent from $5.6 billion in 2006. Analysts on average expected revenue of $5.7 billion, according to Thomson.

The St. Paul, Minnesota-based company said it still expects full-year earnings in the range of $5.20 to $5.45 a share, including gains in the range of 60 to 70 cents a share.

It previously said its expected full-year profit range before one-time items was $4.60 to $4.75 a share. Analysts were expecting $4.66 a share.

3M also still sees full-year, local-currency sales growth, excluding the sale of the drug business, in the range of 6 percent to 10 percent. Including the sale, the expected growth rate remains between 2 percent and 6 percent.

"I still feel they have a little bit of a challenging environment in front of them, at least for the next several quarters as they continue to invest to increase the capacity and de-bottleneck some of their production facilities," Dmitry Silversteyn, an analyst at Longbow Securities, told Reuters.

"I just don't think now that the bottom will be perhaps as deep as I had once feared," Silversteyn said, who has a "neutral" rating on the stock.

Investors wary about an economic slowdown in the U.S. look to companies like 3M - because of its extensive product portfolio - for clues to the future.

-- Reuters contributed to this report Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.