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3M’s stock declines after adjusted profit, turnover drops more than expected

Shares of 3M Co. MMM,
+ 2.12%
declined 2.2% in premarket trading Tuesday, after the diversified health, consumer and industrial products producer reported second-quarter earnings and sales that exceeded expectations, as results were “significantly impacted” by COVID-19 pandemic. Net income increased to $ 1.29 billion, or $ 2.22 per share, from $ 1.13 billion or $ 1.92 per share in the prior year period. Excluding one-off items, adjusted earnings per share were down 16% to $ 1.78, under FactSet’s consensus of $ 1.81. Revenue was down 12% to $ 7.18 billion, with the FactSet consensus missing $ 7.32 billion. Security and industry sales were down 9.2% to $ 2.7 billion, below the FactSet consensus of $ 2.62 billion; healthcare revenues declined 0.4% to $ 1.8 billion to miss expectations of $ 1.95 billion; transportation and electronics sales were down 20.9% to $ 1.9 billion to miss expectations of $ 1.97 billion; and consumer revenues declined 6.2% to $ 1.2 billion, in line with expectations of $ 1.22 billion. The company said it is still unable to provide financial guidance given the uncertainties surrounding the COVID-19 pandemic. For July to date, 3M said sales are rising in last year’s low single-digit percentage range. The stock is down 7.5% through Monday, while the Dow Jones Industrial Average DJIA,
+ 0.43%
decreased 6.9%.

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