[MMM put up excellent 2Q10 numbers, raised 2010 EPS guidance yet again, and raised 2010 guidance for “organic” sales growth (i.e. excluding acquisitions and currency effects) to 13-15% from the prior guidance of 10-12%. Nevertheless, the announcement was anticlimactic because MMM preannounced a stellar quarter on June 29: #msg-51800403. Please see the prologue of that post for the reasons why I consider MMM a core technology holding to capitalize on The Global Demographic Tailwind.]
3M Co.'s earnings rose 43% as the consumer and industrial manufacturer said sales have rebounded to levels last seen two years ago.
The results beat analysts' expectations and the company raised its 2010 earnings guidance again, this time to $5.65 to $5.80 a share from $5.40 to $5.60 a share.
Manufacturing has strengthened in recent quarters by the rebuilding of inventories that were cut sharply during the recession. But the momentum began to weaken lately, adding to worries about the economic recovery's strength.
3M, which makes thousands of products ranging from Post-It notes to furnace filters and power lines, has reported stronger sales recently. It has been fueled by a combination of new products, robust growth in emerging markets and increasing demand from its traditional end-market customers in automotive manufacturing and consumer electronics.
3M reported a second-quarter profit of $1.12 billion, or $1.54 a share, up from $783 million, or $1.12 a share, a year earlier. Revenue increased 18% to $6.73 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of $1.48 a share on revenue of $6.66 billion.
Gross margin rose to 49% from 47.9%.
Sales were up 32% at its electro and communications segment and 30% in its display and graphics business. Its other businesses all turned in double-digit growth on a percentage basis with the exception of its health-care segment, where sales rose 5%.‹
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