LONDON (ShareCast) - (Sharecast News) - American industrial conglomerate 3M announced a strong set of second-quarter results on Friday, comfortably beating market expectations as it narrowed its guidance for the full-year towards the top end of its previous expectations.
The company reported quarterly sales of $6.3bn, down 0.5% year-on-year, although adjusted sales reached $6bn, reflecting a 1.2% increase in organic growth on the year.

Wall Street analysts had pencilled in second-quarter revenue of $5.93bn, according to Zacks Investment Research.

Earnings per share (EPS) from continuing operations showed a significant improvement, with GAAP earnings surging 117% to $2.17 per share, while adjusted earnings per share rose 39% to $1.93.

That was well ahead of consensus estimates for earnings of $1.66 per share.

In terms of cash flow, 3M generated $1bn in operating cash flow and reported adjusted free cash flow of $1.2bn.

Based on its performance in the first half, 3M updated its full-year earnings guidance, now projecting adjusted earnings per share from continuing operations to range between $7.00 and $7.30, up from a previous lower bound of $6.80.

It maintained its adjusted total sales growth outlook at between -0.25% and +1.75% and adjusted organic sales growth at flat to +2%.

"We delivered another strong quarter with adjusted earnings growth up double-digits and robust cash generation," said chief executive officer William Brown.

"As I look ahead, I am focussed on three priorities - driving sustained organic revenue growth, increasing operational performance, and effectively deploying capital.

"I have long admired 3M's track record of innovation and am excited to be leading this great company and by the opportunities ahead."

At 0641 EDT (1141 BST), shares in 3M Company were up 5.18% in premarket trading in New York, at $108.75, having closed Thursday's session up 0.14% at $103.39.

Reporting by Josh White for Sharecast.com.

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