3M Cuts Outlook Despite Strong 3Q22 Earnings
Overseas sales and divestitures are the culprits behind 3M cuttings its outlook for 2022, despite posting better-than-expected earnings for 3Q22. The overseas sales drop is a result of a stronger dollar.
The St. Paul, MN-based company reported 3Q22 earnings of 3.86 billion up from $1.43 billion a year-ago. However, 3M reported that revenue fell from $8.62 billion to about $8.94 billion a year-ago.
“We continue to position 3M for the future through investments for growth, productivity and sustainability, along with active portfolio management,” Roman continued. “This quarter we divested our food safety business and began executing the work-streams to successfully spin our Health Care business, resulting in two world-class, public companies.”
3M made the announcement in July that it was spinning off its healthcare unit into a publicly traded business. The healthcare unit would be a 9 billion company that would focus on wound care, healthcare IT, oral care, and biopharma filtration.
The company is facing massive lawsuits from its Aero Technologies subsidiary. Right now, there are more than 290,000 active claims against 3M, according to the IndyStar. The lawsuits are being brought on by veterans who blame their hearing problems on the earplugs.
Article source: MDDI