3M has leaned on product innovation under CEO Bill Brown, who took the helm in 2024
[WASHINGTON] 3M on Tuesday (Oct 21) raised full-year profit forecast for the second time this year, bolstered by a shift toward higher-margin products and tighter cost controls, sending its shares up 2.6 per cent in premarket trading.
The industrial conglomerate now expects 2025 operating margin to grow 1.8 to 2 percentage points, compared with its previous projection for a rise of 1.5 to 2 percentage points.
3M has leaned on product innovation under CEO Bill Brown, who took the helm in 2024, when the company was grappling with slowing sales and the fallout from several lawsuits.
Brown’s strategy centres on cross-selling new high-margin products to existing customers, improving delivery times to avoid penalties and trimming general and administrative costs.
The Saint Paul, Minnesota-based company launched 70 new products in the third quarter. It expects to reach 250 new product launches by the end of 2025, exceeding its initial target of 215.
3M’s selling, general and administrative expenses dropped 22.8 per cent during the third quarter, while research and development expenses rose 10.4 per cent.
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The Scotch tape-maker’s shares have risen nearly 20 per cent this year so far, recovering losses from April, when US President Donald Trump announced a broad package of import duties.
The company expects 2025 adjusted profit to be between US$7.95 and US$8.05 per share, compared with its previous forecast of US$7.75 to US$8 per share.
3M posted third-quarter adjusted profit of US$2.19 per share, beating analysts’ estimate of US$2.08, according to data compiled by LSEG.
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Total quarterly adjusted revenue came in at US$6.32 billion, while analysts estimated US$6.25 billion. REUTERS
