(Bloomberg) -- 3M Co. raised its full-year profit forecast in a sign of progress as its new chief executive officer 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 US$7.00 to $7.30 per share, the company said Friday in a statement as it reported second-quarter financial results. Lifting the low end of the range boosted the midpoint of 3M’s forecast to $7.15, up a dime from its previous outlook.
The results are the first under CEO 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.
Accelerating 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 organization’s 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 top 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 wasn’t immediately clear if their estimates are comparable to the company’s number. Net sales were $6.26 billion, outpacing Wall Street’s expectations.
3M’s shares jumped 6.3 per cent as of 6:57 a.m. in New York.
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