3M Co. (NYSE: MMM) released its first-quarter financial results before the markets opened on Thursday. The company said that it had $2.23 in earnings per share (EPS) and $7.86 billion in revenue, but that compared with consensus estimates that called for $2.49 in EPS and $8.02 billion in revenue. And it the same period of last year, 3M said it had EPS of $2.50 on $8.28 billion in revenue.
During the latest quarter, total sales were down 5.0% year over year. Organic local-currency sales were down 1.1%, while divestitures, net of acquisitions, decreased sales by 0.5%. Foreign currency translation decreased sales by 3.4% year on year.
Total sales grew 0.3% in Health Care, with declines of 1.9% in Consumer, 4.2% in Safety and Graphics, 6.6% in Industrial and 11.8% in Electronics and Energy. Organic local-currency sales increased 0.9% in Consumer and 0.7% in Health Care, with decreases of 0.1% in Safety and Graphics, 2.8% in Industrial and 3.0% in Electronics and Energy.
Looking ahead to the 2019 full year, the company updated its earnings expectations to $9.25 to $9.75 per share, down from earnings of $10.45 to $10.90 per share. Consensus estimates are calling for $10.52 in EPS and $33.07 billion in revenue for the full year.
Mike Roman, 3M CEO, commented:
The first quarter was a disappointing start to the year for 3M. We continued to face slowing conditions in key end markets which impacted both organic growth and margins, and our operational execution also fell short of the expectations we have for ourselves. As a result, we have stepped up additional actions – including restructuring – to drive productivity, reduce costs, and increase cash flow as we manage through challenges in some of our end markets.
Shares of 3M were last seen down about 11% at $195.62, in a 52-week range of $176.87 to $219.75. The consensus price target is $204.44.