3M posted double-digit declines in second quarter sales and profits, falling short of Wall Street forecasts, as coronavirus-induced economic distress continued to dog the giant manufacturer.
Still, Maplewood-based 3M on Tuesday posted a nice hike in sales for personal protective equipment — a small silver lining from the coronavirus outbreak — while the company’s overall revenue trends have been improving so far in the third quarter.
July sales are up in the low single digits over the same time last year. The improvements seen were “broad-based,” the company said.
“While our results were significantly impacted by the global economic slowdown, we executed well, managed our costs and delivered another quarter of robust cash flow,” said CEO Mike Roman in a statement. “We are taking actions to navigate near-term challenges.”
3M posted second quarter adjusted earnings of $1 billion, or $1.78 per share, down 16% from the same time last year. Stock analysts on average were forecasting profits of $1.80 per share.
3M’s second quarter sales tallied $7.2 billion, down 12 % year-over-year, and a notch below Wall Street expectations of $7.3 billion.
The company’s transportation and electronics business was hit hardest during the second quarter. Its sales of $1.9 billion were down 21% over the same time last year, while its operating income fell 35% to $382 million.
While sales of 3M’s N95 masks — which filter out airborne particles — have boomed because of COVID-19, the company’s overall safety and industrial business saw a 9.2% decline in revenue to $2.7 billion. Still, the division’s operating income was down only 1.6% to $636 million.
In health care, 3M posted sales of $1.8 billion, down less than 1%, though the segment’s operating income fell 37% to $306 million.
3M’s fourth major business segment, consumer, experienced a 6.2% decline in sales to $1.2 billion, while its operating profits fell 4.8% to $287 million.
3M withdrew its earnings guidance for 2020 earlier this year due to uncertainties caused by COVID-19. The company said Tuesday it “continues to believe it is prudent not to provide guidance.”