(Reuters) -3M on Friday raised its full-year profit forecast, as its cost-cutting measures and efforts to focus on high-margin products begin to pay off, sending shares of the industrial giant up 2.5% in premarket trading.
In July 2024, CEO Bill Brown laid down a plan to improve the conglomerate’s sales by shifting spending away from legal liabilities and supply-chain issues, and toward developing new products.
The industrial giant now expects a full-year adjusted profit between $7.75 and $8 per share, compared with $7.60 to $7.90 per share previously.
The increased full-year earnings per share guidance now includes the impact of tariffs, the company said. In the first quarter, the conglomerate expected a hit of 20 cents to 40 cents.
The forecast raise comes amid easing tensions between the U.S. and China after the two countries reached a comprehensive trade deal in June.
The Scotch tape-maker reported second-quarter adjusted profit of $2.16 per share compared with $1.93 a year earlier.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Shinjini Ganguli)