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3M (MMM) Sees Profit Rising 8 Pct In 2013; Affirms 2012 View

 December 12, 2012 09:08 AM
 

(By Balaseshan) 3M Co. (NYSE: MMM) affirmed its full-year 2012 earnings guidance and expects profit growth for fiscal 2013 of about 8% over last year's market expectations.

The company affirmed its 2012 earnings per share (EPS) forecast of $6.27 to $6.35, while Street analysts predict $6.32.

3M anticipates 2013 earnings of $6.70 to $6.95 per share, while Street analysts predict EPS of $6.85.

Organic local-currency sales growth is expected to be in 2% to 5% range for the year 2013. The company expects that free cash flow conversion will be in the range of 90% to 100%.

"I look forward to another strong year for 3M. Our unique combination of technology, manufacturing prowess and global capability – along with inherent operational excellence – will enable us to once again grow sales and profits," said Inge Thulin, 3M chairman, president and chief executive officer.

Recently, the company has completed its acquisition of Ceradyne Inc. effective as of November 28, pursuant to the previously announced merger agreement among Ceradyne, 3M, and 3M's subsidiary, Cyborg Acquisition Corp., through the merger of Cyborg Acquisition Corp. with and into Ceradyne.

On October 23, 3M reported earnings for the third quarter of $1.16 billion or $1.65 per share, up from $1.09 billion or $1.52 per share last year. Sales fell to $7.50 billion from $7.53 billion.

MMM closed Tuesday's regular session at $93.68. The stock has been trading between $77.51 and $95.46 for the past 52 weeks.


Rich
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