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While demand for goods has rebounded with massive stimulus and the reopening of economies, a labor shortage and soaring raw material prices have left U.S. manufacturers in the lurch.
Shares of 3M, however, were up 2.2% at $186.43 premarket as the biggest maker of N95 masks reported a better-than-expected quarterly profit and revenue on the back of sales growth in all its businesses.
3M, which makes everything from Post-It notes and adhesives to industrial sandpaper, also said annual sales are now expected to grow between 9% and 10%, compared to a prior forecast of 7% to 10%.
Last month, the company pointed to inflation coming in higher than expected, with cost pressures in resins, wood pulp and labor.
3M now expects 2021 earnings per share between $9.70 and $9.90, versus its earlier forecast range of $9.70 to $10.10.
Third-quarter sales in the company’s safety and industrial unit grew 7.2% to $3.24 billion, while that of its consumer unit grew 8.1% to $1.53 billion.
Net income attributable to 3M rose marginally to $1.434 billion, or $2.45 per share, in the quarter ended Sept. 30.
Analysts on average expected the company to earn $2.20 per share, according to Refinitiv data.
Net sales rose 7.1% to $8.94 billion, beating estimates of $8.67 billion.
