3M Co. expects profit to grow this year as Chief Executive Officer William Brown works to advance his plan to turn around the sprawling manufacturer.
William Brown
Adjusted earnings in 2025 should be $7.60 to $7.90 a share, the Maplewood-based company said Tuesday as it reported fourth-quarter results that were roughly in line with Wall Street expectations. Analysts surveyed by Bloomberg had projected $7.79, on average.
The forecast suggests Brown sees additional progress ahead after a year in which cost cuts and efforts to boost productivity helped lift per-share profit 21% to $7.30.
3M’s shares have soared since late July when Brown outlined a plan to improve the company’s sluggish sales growth by speeding the development of new products and cutting waste across 3M’s complex organization. 3M’s adjusted operating margin a key metric for investors was 19.7% in the fourth quarter, shy of the 20.1% expected expected by Wall Street.
Brown is focused on reinvigorating the company’s new-product pipeline, while moving past legacy issues such as exiting its “forever chemicals” business. 3M in December announced a licensing agreement with closely held US Conec Ltd, targeting data centers as a source of growth.
Adjusted sales this year should grow as much as 3% on an organic basis, 3M said. That compares to a 2.9% gain expected by analysts.
Brown has also changed 3M’s remote work policy, expecting those at director level and above to come into an office Tuesday through Thursday, which have been branded “collaboration days” by the company.
3M’s shares rose more than 4% on Tuesday. The stock jumped 41% last year, outpacing the SP 500 Index.
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