* Expects 2013 earnings $6.70-$6.95/share v. est $6.85/share
* Expects organic revenue growth of 2 pct to 5 pct
* CFO says forecast reflects "weaker global economy"
Dec 12 3M Co expects earnings to rise
about 8 percent next year, with sales growth coming in below the
diversified U.S. manufacturer's long-term targets amid a weak
3M, whose products range from Post-It notes to films used in
electronics, said on Wednesday it expects to earn $6.70 to $6.95
per share in 2013, a range that at its midpoint is below
analysts' average forecast.
The St. Paul, Minnesota-based company is the second major
manufacturer to set a 2013 earnings target a bit shy of Wall
Street estimates, following on the heels of Honeywell
International Inc, which laid out its forecast on
3M expects organic revenue -- a measure that excludes the
effects of acquisitions, divestitures and exchange-rate
fluctuations -- to rise by 2 percent to 5 percent next year.
The forecast, which is below the company's long-term revenue
growth target of 4 percent to 6 percent, reflects "a weaker
global economy in the near term," Chief Financial Officer David
Meline said on a conference call with investors.
The midpoint of 3M's earnings-per-share forecast is 8
percent above the midpoint of its 2012 forecast.
Analysts on average were expecting 2013 earnings of $6.85
per share excluding one-time items, according to Thomson Reuters
3M last month laid out a long-term growth plan that calls
for earnings per share to rise by roughly 10 percent a year
Chief Executive Inge Thulin, who took the top job in
February, has said one of the company's first priorities is to
prune its broad portfolio of products, with 3M likely to focus
on fewer but larger takeovers.
Thulin told investors he has identified businesses that
generate about 8 percent of 3M's annual revenue that need to be
fixed or sold, though he has not identified those units.
The company has already closed one large deal initiated on
Thulin's watch, the $860 million purchase of Ceradyne Inc, a
maker of advanced technical ceramics.
3M is one of several large U.S. manufacturers laying out
their expectations for 2013. United Technologies Corp
and General Electric Co are due to issue their outlooks
in the coming days.
3M shares have gained about 12 percent this year, outpacing
the Dow Jones industrial average's 9 percent rise. The
shares eased 0.3 percent to $93.42 in morning trading on the New
York Stock Exchange.