3M Co, a diverse maker of adhesives, abrasives and various other products in the U.S., posted an increase of 5.85 in its quarterly profits that exceeded most estimates. This rise is driven by a jump of sales in the U.S., cost control and strong pricing.
The 3M Co shares in Dow Jones Industrial Average went up to 6.2%. The positive results of the third quarter that just ended exceeded its financial targets for the entire year, a change that the diverse manufacturer attributes partially to more negative currency impacts.
This famous maker of products for various industries derives over 60% of its total earnings from outside of the U.S. and analysts have warned the company of a tough quarter because of the volatility of Latin America and Europe markets.
Without the impact made by foreign currency translation, the sales of 3M Co jumped by 3.9%. While the organic sales growth slowed down from the latest quarter, it still went ahead of the expectations of analysts, especially the Wall Street.
The net income of 3M Co for the third quarter rose by 5.8% or $1.3 billion which is equal to $1.98 per share. Sales were up by 2.8% or $8.14 billion which is lower than the $8.24 billion that was expected by analysts.
3M Co forecasted the entire year of 2014 to show a profit of $7.40 to $7.50 per share while its 2013 projected profit was $7.30 to $7.55. Analysts are looking at 2014 earnings of its shares for $7.46 apiece.