3M exceeds expectations & raises its outlook due to higher prices and cost-cutting measures.

3M (MMM) reported better-than-expected profits and raised its projection, owing to increased pricing and cost reductions.

3M announced profits per share (EPS) of $2.68 in the third quarter of fiscal 2023, with sales declining 3.6% year on year to $8.02 billion. Both exceeded expectations.

The company said its earnings reflected “strong operational execution, reorganizing actions, and active spending discipline.” Sales fell in all of its divisions, including Safety and Industrial (-4.9%), Transportation and Electronics (-3.0%), Health Care (-0.2%), and Consumer (-6.7%).

As a consequence of its “year-to-date performance and continued strong operational execution,” the firm now estimates full-year EPS in the $8.95 to $9.15 range, up from its previous prediction of $8.60 to $9.10.

3M agreed a settlement with water systems across the country in June after charges that its so-called “forever chemicals” contaminated water sources. The $10.3 billion arrangement fell well short of what many experts had predicted. In addition, in August, the firm reached a tentative settlement in connection with cases involving over a quarter-million veteran allegations that earplugs provided by 3M to the military were faulty.

As of 11:30 a.m. Tuesday, 3M shares were up more than 5%. ET following the news, after falling to their lowest level since 2012.

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