Oct 25 (Reuters) - Post-it maker 3M Co (MMM.N) said on Tuesday it expected weak consumer spending to continue into the upcoming holiday season and cut its full-year forecasts, echoing broader concerns of an uncertain economic environment.
"Consumer spending continues to be weak," 3M Chief Financial Officer Monish Patolawala said on a post-earnings call with analysts. He expects inflation to impact consumer spending through the holiday season.
U.S. retailers, dealing with billions of dollars worth of unsold stock, have taken a more cautious view of this year's holiday season as consumers facing decades-high inflation cut back on discretionary spending.
That cut in spending has also impacted 3M, which makes equipment such as electronic accessories and power cable connectors. Now, a strong dollar is also having an impact.
The diversified manufacturer, which gets 60 percent of its revenue from outside the United States, cut its full-year revenue and profit forecasts earlier on Tuesday, while also citing ongoing macroeconomic and geopolitical uncertainty.
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"We think lowered 2022 guidance, a still challenging macro backdrop and litigation-related overhang could weigh on stock performance," Citi analysts said in a note.
3M was able to offset higher raw material and logistics costs by raising prices, helping it post a third-quarter adjusted profit of $2.69 per share, beating estimates of $2.60, according to Refinitiv data.
It now expects full-year revenue to fall between 3.5% and 3%, down from its previous guidance of a 2.5% to 0.5% fall, while adjusted earnings per share are forecast between $10.10 and $10.35, compared with its previous outlook of $10.30 to $10.80.
3M reported third-quarter revenue of $8.62 billion, missing the average analyst estimate of $8.70 billion, according to Refinitiv data.
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