United Technologies Corp. cut its 2015 sales and profit forecasts as the strengthening dollar takes a bite out of overseas sales of its jet engines, elevators and other heavy equipment.
The company cut its 2015 sales expectations by $1.5 billion, to a range of $65 billion to $66 billion, and said its earnings would be hurt by foreign-exchange effects.
“It really is one word, and that’s ‘currency,’ that we’re focused on,” Chief Executive Greg Hayes said in an interview.
Then again, UTX is a conglomerate, while 3M isn’t :- )
3M announced today that it has entered into a definitive agreement with Polypore International Inc. to acquire the assets and liabilities associated with Polypore’s Separations Media business for a total purchase price of $1.0 billion.
Polypore’s Separations Media business is a leading provider of microporous membranes and modules for filtration in the life sciences, industrial and specialty segments with trailing 12-month sales of $210 million as of Sept. 27, 2014.
3M typically consummates several acquisitions of this size in a given year.
…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.