NEW YORK, Oct 27 — Earnings for 3M were again supported today by strong demand for protective masks to counter the coronavirus even as overall earnings fell amid weakness in some other businesses.
Revenues for the US giant’s safety and industrial segment rose during the third quarter, in part because of strong sales of N95 “respirators” that have been in demand all year as the world has contended with Covid-19.
3M has boosted production of the masks and collaborated with law enforcement officials to fight price-gouging and fraud of personal protective equipment.
“Though economic uncertainty and challenges due to the Covid-19 pandemic remain, we returned to positive organic sales growth with sequential improvement across businesses and geographies,” said Chief Executive Mike Roman.
Net income came in at US$1.4 billion (RM5.8 billion), down 10.8 per cent on a 4.5 per cent rise in revenues to US$8.4 billion. The results topped estimates for both earnings per share and sales.
3M described conditions as mixed across its businesses, with good demand in personal safety, home improvement, general cleaning and semiconductors.
But the company also experienced slowing in a number of areas due to Covid-19. These included healthcare and oral care elective procedures, autos, consumer electronics, hospitality and office supplies.
3M did not provide a full-year forecast, citing the “continued evolving and uncertain impact of the Covid-19 pandemic.”
Shares fell 3.0 per cent early today to US$161.13. — AFP
