3M Has A Positive Outlook
3M addressed over 3,000 of its shareholders at its annual stockholders meeting, and reaffirmed its 2005 earnings guidance.
The company discussed the actions it is taking to “sustain solid, profitable growth both in the short term and in the long term.”
Chairman of the Board and CEO, W. James McNerney, Jr. said that “by any measure, 2004 was a tremendous year for 3M,” with sales and earnings both reaching all-time highs. Revenues increased 9.8% to $20.0 billion and net income rose 24.4 percent to $3.0 billion.
“Our success last year gives me even more confidence that the 3M business model – time-tested, disciplined and dynamic – is the right model to deliver a bright future of consistent performance and sustained growth,” he said.
“This year, we are seeing slowing growth in the world’s mature economies, and we continue to get mixed signals from economic reports and first-quarter corporate earnings. Against this uncertain backdrop, 3M was able to deliver stronger-than-expected earnings in the first quarter this year.”
3M increased its net income 12% on a 4.6% gain in sales during the quarter.
According to a press release, 3M continues to expect earnings to be in the range of $4.15 to $4.25 per share, with sales in local currencies increasing 5% to 8% for the full-year 2005.