3M lifted its full-year profit forecast on Tuesday on the back of cost-control measures, price hikes and continuing strength in its safety & industrial business.
The company’s shares rose 6 per cent in premarket trading and were poised to open at a four-year high if the gains held.
The industrial giant said it expects higher pricing to “fully offset” a hit to its profit from oil-led inflation forecast in a range of $150 million to $175 million. 3M previously forecast a $125 million annual cost impact from it.
Companies are grappling with rising costs as oil prices have risen to their highest levels in more than a month in July amid escalating U.S.-Iran tensions and concerns over disruptions to energy supplies through the Strait of Hormuz.
3M now expects full-year adjusted profit per share between $8.80 and $8.95, compared with its earlier forecast of $8.50 to $8.70.
The company’s cost cuts, price hikes and the introduction of new products and customer service initiatives under CEO William Brown have helped the company cushion margins from weak demand against the backdrop of prolonged inflation.
Its largest segment by sales, the safety and industrial segment, saw an over 8 per cent rise in quarterly sales from a year ago, helped by strong demand across electrical markets, adhesives, abrasives and industrial specialties, as roofing granules returned to growth.
The transportation and electronics segment’s ongoing weakness in autos was offset by strength in data centers and semiconductor business, resulting in nearly 6 per cent segment sales growth.
Maplewood, Minnesota-based 3M’s quarterly adjusted profit came in at $2.40 per share, compared with analysts’ estimate of $2.25, according to LSEG-compiled data.
Second-quarter revenue rose 2.4 per cent to $6.50 billion from a year ago. Analysts on average had expected $6.41 billion.
3M’s shares had risen 23.2 per cent since January 2025 up to the stock’s last close, versus a 21.3 per cent gain for the Dow Jones Industrial Average .DJI.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Maju Samuel)
