Wednesday, October 26, 2011

3M Lowers Year Outlook on Slowing Global Growth

Americans are buying less LCD TV's and electronics, putting pressure on companies like 3M, who rely heavily on those types of products to drive their business. 3M lowered its expectations for earnings this year mainly because of decreasing imports from Asia. Many of the company's products are made overseas and sold here in the U.S., making up 70 percent of the company's sales.

Outlooks from 3M show that earnings in the third-quarter fell about 2 percent. However, revenue rose 10 percent, which was mostly due to gains and acquisitions from foreign exchange. The company's biggest revenues come from its transportation and industrial unit, which grew in double-digits. 3M also experienced double-digit growth in its sales in health care, security, safety and protection services.

Post-its and Scotch tape are the products most familiar to consumers, as well as other office products, and showed a 4.6 increase in revenue. The gains in office products were not enough to balance the loss in graphics sales for the LCD TV market, which fell 14 percent.

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