3M: first-quarter profit hit by legal settlement
(CercleFinance.com) - 3M said on Tuesday that quarterly earnings are down over 50%, badly hit by a legal settlement.
While 3M's sales rose 7.7% to 8.3 billion dollars over the first quarter, the maker of Post-It notes and Scotch tape reported net earnings of 602 million dollars, or 1.01 dollar per share, compared with 1.3 billion, or 1.21 dollar per share, a year earlier.
Over the quarter, the company resolved a lawsuit with the State of Minnesota regarding environment matters and booked a pre-tax charge of 897 million dollars, including legal fees and other obligations.
Excluding the legal settlement, operating income was 1.9 billion dollars, up from 1.7 billion dollars a year ago.
3M also updated its organic local-currency sales growth guidance, now expecting between 3% to 4%, versus a previous range of 3% to 5%.
Unsurprisingly, the stock was down 4% in pre-market trading after this update.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
While 3M's sales rose 7.7% to 8.3 billion dollars over the first quarter, the maker of Post-It notes and Scotch tape reported net earnings of 602 million dollars, or 1.01 dollar per share, compared with 1.3 billion, or 1.21 dollar per share, a year earlier.
Over the quarter, the company resolved a lawsuit with the State of Minnesota regarding environment matters and booked a pre-tax charge of 897 million dollars, including legal fees and other obligations.
Excluding the legal settlement, operating income was 1.9 billion dollars, up from 1.7 billion dollars a year ago.
3M also updated its organic local-currency sales growth guidance, now expecting between 3% to 4%, versus a previous range of 3% to 5%.
Unsurprisingly, the stock was down 4% in pre-market trading after this update.
Copyright (c) 2018 CercleFinance.com. All rights reserved.