The Rising Influence of Rising Affluence

[DewDiligence]

3M lowers 2015 EPS guidance on FX effects:

http://finance.yahoo.com/news/3m-announces-first-quarter-results-113000338.html

…foreign currency impacts reduced first-quarter pre-tax earnings by approximately $90 million or the equivalent of $0.10 per share. For 2015 in total, 3M now expects foreign currency impacts to reduce earnings by $0.35 to $0.40 per share versus a prior expectation of negative $0.20 per share.

In light of the stronger U.S. dollar, 3M updated its 2015 financial expectations. The company now expects earnings to be in the range of $7.80 to $8.10 per share versus $8.00 to $8.30 per share previously.

Foreign currency translation is expected to reduce 2015 sales by 6 to 7 percent versus a previous expected reduction of 4 to 5 percent.

Organic YoY growth in local currency was 3.3%, which is not bad, but the stock’s high valuation didn’t leave any room for a reduced outlook, causing a 3% drop in the share price today.