What Every Investor Needs To Know About 3M's Blow-Out Earnings


3M (MMM) 1Q earnings beat analyst expectations, and the company has increased its full-year earnings forecast 10% to $5.40 – $5.60 per share from $4.90 – $5.10.

The stock is up about 2.5% right now and near $89.50 sits near a 52-week high. It is valued at over 16x its latest forward profit forecast.

Even if you don’t care where 3M shares are going, there were some key economic data points in the report relevant to broader investors.

Note: The author does not own shares of 3M. Investors he speaks with may be long or short any securities related to the company.

1) All businesses are going strong.

This includes 'Industrial & Transportation', 'Health Care', 'Consumer & Office', 'Display & Graphics', 'Safety, Security, & Protection Systems', and 'Electro & Communications'. All are seeing a robust business environment.

'Each of the company's six business segments posted double-digit sales growth and 20 per cent-plus operating income margins. Sales growth was strongest in emerging economies, where sales expanded by 47 per cent versus the first quarter of 2009. ... By any measure, we are off to a tremendous start in 2010,

2) Industrial and transportation demand is going gangbusters all over the world, even in the U.S..

Source: 3M

3) Semi-conductor and consumer electronics are showing substantial strength.

Source: 3M

4) Even U.S. consumer and office demand is strong.

Source: 3M

4) The security-related business is especially robust in Europe, and again, the U.S..

Source: 3M

5) Net-net, there are signs of strength in many parts of the economy, as seen by 3M.

Even in the U.S..

This isn't just about strong emerging markets, the U.S. is contributing as well.

See the full 3M presentation.

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