3M finished a pandemic-addled 2020 on a strong note, posting a fourth quarter profit surge that handily topped Wall Street estimates.
The Maplewood, Minn.-based manufacturing giant Tuesday recorded fourth quarter earnings of $1.39 billion, or $2.38 per share, up 43% over the same time a year ago when the company posted a notably weak quarter riddled with charges.
Stock analysts on average were forecasting 3M fourth quarter earnings of $2.15 per share and sales of $8.4 billion. 3M's actual sales tallied $8.6 billion, up 5.8 % over a year ago.
"The 3M team delivered a strong fourth quarter with organic growth across all business groups, robust cash flow and a double-digit increase in earnings per share," Mike Roman, 3M's CEO, said in a statement.
3M's stock, which closed Monday at $170.39, was up about 2% in premarket trading Tuesday.
Fourth quarter sales and profits rose in all four of 3M's divisions, led by its safety and industrial business, which posted a 50% year-over-year increase in earnings and 12.7% increase in revenue to $3.1 billion.
The company's health care division saw a 22% increase in profits with sales rising 5.4% to $2.3 billion. Sales in 3M's consumer products division were $1.4 billion — up 10.6 % — while profits rose 11 %.
And the company's transportation and electronics business showed a recovery from several down quarters, with profits rising 8 % and sales increasing 2.3 % to $2.3 billion.
Geographically, 3M's revenue growth was strongest in the Americas and Europe and the Middle East, with sales adjusted for currency fluctuation up 7.9 % in the former and 5.6 % in the latter. Currency-adjusted sales in Asia Pacific rose 1.7 %.
3M Tuesday initiated its full-year 2021 guidance with earnings expected to be in the range of $9.20 to $9.70 per share. The company expects its full-year total sales growth in the range of 5 to 8% with organic local-currency growth between 3 to 6%.
