(Reuters) - Diversified manufacturer 3M Co (MMM.N) reported quarterly increases in profit and revenue that fell shy of Wall Street estimates, as currency effects weighed on sales and costs rose.
The company, whose products include Post-it notes and film for flat-panel televisions, backed its full-year financial targets. Shares fell 1.4 percent in morning trading.
First-quarter net income rose to $1.21 billion, or $1.79 per share, from $1.13 billion, or $1.61 per share, a year ago.
Analysts on average were looking for $1.80 per share, according to Thomson Reuters I/B/E/S.
Revenue increased 2.6 percent to $7.83 billion, short of the $7.96 billion expected by analysts.
Without a 2 percent reduction from currency translations, sales would have increased 4.6 percent, the company said.
Analysts noted that company actions to restructure and other investments were pressuring results, while 3M also raised its spending on research and development.
“We increased investments in R&D and commercialization to help secure future growth in the business,” 3M Chief Executive Officer Inge Thulin said.
3M projected full-year earnings in a range of $7.30 to $7.55 per share on sales growth of 3 percent to 6 percent. Analysts are looking for earnings of about $7.46 per share. The company said currency effects would weigh on sales this year slightly more than the company had expected previously.
3M also repeated its plans to spend $5 billion to $10 billion on acquisitions through 2017, including possible “multibillion-dollar” transactions that could exceed its previous deal sizes of as much as $1 billion apiece.
3M shares fell $1.90 to $136.09 in morning trading on the New York Stock Exchange. They are down about 3 percent in 2014, underperforming broader U.S. markets.
Reporting by Lewis Krauskopf; Editing by Chizu Nomiyama and Tom Brown