Source: Sharecast
The company, which describes itself as a "science-based technology company" but works across a variety of industrial and consumer settings, said adjusted earnings per share (EPS) are now expected to come in at the $8.95-9.15 range this year, up from earlier guidance of $8.60-9.10.
Adjusted operating cash flow is now targeted at $6.5bn-6.9bn, contributing to 100-110% adjusted free cash flow conversion. Earlier forecasts were for cash flow of $5.9bn-6.3bn, contributing 90-100% of free cash flow conversion.
3M said the upgrade was a result if its "year-to-date performance and the continued strong operational execution".
"We are building momentum through strong operational execution," said chief executive and chair Mike Roman.
"In the third quarter 3M again delivered for our customers in an uncertain environment, positioning us for a solid close to 2023. Our actions led to underlying earnings ahead of our expectations, as well as better-than-expected margins and cash flow."
In the third quarter, sales fell 3.6% year-on-year to $8.31bn, driven by a 3.7% drop in organic sales. Adjusted free cash flow was $1.9bn, up 39% year-on-year.
Meanwhile, the company swung to a loss per share of $3.74, compared with a profit of $6.77 a year earlier, as a result of impairment charges related to the $6bn lawsuit over defective Combat Arms earplugs used by the US military, which allegedly led to hearing damage from.
Excluding this $5.80 impairment charge per share, along with other special items, adjusted EPS was $2.68, up from 2% the year before.
Futures were rising nearly 4% in pre-market trade to $88.95.
