(Bloomberg) -- 3M Co. raised its full-year profit forecast in a sign of progress as its new chief executive looks to reinvigorate the iconic manufacturer after a lengthy period of turmoil.
The maker of Post-it notes and industrial adhesives now expects 2024 adjusted earnings of between $7.00 to $7.30 per share, the company said Friday as it reported second-quarter financial results. That boosts the midpoint of 3M’s forecast to $7.15, up from $7.05 under its previous outlook.
The results are the first under 3M Chief Executive Officer Bill Brown, who succeeded Mike Roman on May 1. Brown inherited a much smaller company following the spinoff of 3M’s huge health-care products division unit amid massive legal liabilities.
Boosting 3M’s sales growth is a priority, Brown said in an interview. To get there, he wants to increase the pace of new product development. He also plans to reduce the organizations complexity. For example, a Command strip passed through five factories and two distribution centers before it gets to the customer, he said.
“We’ll take a fresh look at what cost is embedded in that complexity,” said Brown, an aerospace veteran named to the CEO job in March.
Adding to the company’s challenges is that it’s also looking for a new chief financial officer after announcing earlier this month that Monish Patolawala would depart for Archer-Daniels-Midland Co.
Adjusted earnings were $1.93 a share for the second quarter. Analysts on average expected $1.68 a share, but it’s unclear if their estimates are comparable to the company’s number.
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