MINNEAPOLIS (AP) – 3M Co. said on Tuesday that its second-quarter profit rose 17%, but that was at the low end of its forecast made less than three weeks ago.
The Maplewood-based company, which makes products ranging from Scotch tape to furnace filters, said it earned $882 million, or $1.15 per share, for the three months ended June 30 versus $754 million, or 96 cents per share, during the same period last year.
Revenue rose 7% to $5.69 billion from $5.29 billion a year ago.
The resolution of tax issues added 10 cents per share to 3M earnings. Without the special items, 3M said it would have earned $1.05 for the quarter.
Analysts surveyed by Thomson Financial expected 3M to earn $1.07 per share on revenue of $5.68 billion.
For the third quarter, 3M said it expects to earn $1.10 to $1.15 per share, including a cost of 4 cents per share for stock options. Analysts were expecting $1.16 per share.
3M maintained its guidance for the year at $4.55 to $4.65 per share, including a cost of 17 cents per share for stock options. For the year, analysts are expecting $4.54 per share on revenue of almost $22.7 billion.
3M had warned on July 7 that it expected profits to suffer in part because the World Cup didn't spur as big a jump in television sales as it had hoped. 3M makes films that coat LCD television and computer screens. At the time, it said its profits would be $1.14 to $1.17 per share on sales of about $5.7 billion for the quarter.
''The LCD industry experienced an increase in inventory levels, which had a significant and sudden impact on sales of 3M optical films late in the quarter,'' said James B. Stake, executive vice president of 3M's Display and Graphics Business.
He said in a statement that the company expects inventories to return to normal in the second half of the year, and that sales growth will accelerate on increasing consumer demand for LCD TVs.
3M shares fell 44 cents to $71.25 in premarket trading.