(Sharecast News) – US industrial conglomerate 3M lifted annual profit guidance as higher prices and cost-cutting measures provided a boost.
The maker of ‘Scotch’ tape and ‘Post-it’ notes now expects full-year profit of $8.60 – 9.10 per share, up from previous guidance of $8.50 -9.00.
The company has been increasing prices to offset rising commodity costs and also axed its total global workforce by 10%.
“In the second quarter, the actions we took to strengthen our supply chain and restructure the company led to improved service for customers, reduced costs across 3M, and better-than-expected margins and cash flow,” said 3M chief executive Mike Roman.
However, the company swung to a quarterly loss compared to a year-ago profit, as it took a hit from a $10.3bn settlement related to water pollution claims tied to “forever chemicals”.
Reporting by Frank Prenesti for Sharecast.com