3M posts fourth-quarter profit above estimates on strong demand

(Reuters) -U.S. industrial conglomerate 3M Co on Tuesday reported fourth-quarter adjusted profit above estimates as demand for industrial adhesives, tapes and electronics picked up, sending its shares more than 5% higher in premarket trade.

An uptick in demand for electronics used in vehicles and mobile phones boosted results during the holiday quarter, after months of a demand slowdown wrought by inflation-hit consumers postponing big-ticket purchases.

The Scotch Tape maker also forecast 2025 adjusted profit largely in line with Wall Street estimates, as it looks to benefit from a restructuring effort aimed at reining in costs and prioritizing higher-margin products.

Its total operating expenses fell by 44% in 2024 from a year earlier.

Since announcing the restructuring in 2023, 3M has cut more than 8,500 jobs, reduced office spaces by 12% and spun off its healthcare business into a listed company.

CEO Bill Brown, who succeeded Mike Roman in May, said in July he would focus on new product development, which has lagged as the company shifted spending to mitigate legal liabilities and reduce supply-chain costs.

All three of 3M’s business segments recorded adjusted organic growth in the fourth quarter, with product launches up 32% for the year, beating the company’s expectations.

It also aims to purchase about $1.5 billion worth of shares in 2025, 3M said.

The company reported fourth-quarter adjusted profit of $1.68 per share, above analysts’ average expectations of $1.66, according to data compiled by LSEG.

Adjusted revenue of $5.81 billion came in above estimates of $5.78 billion.

The St. Paul, Minnesota-based company forecast 2025 adjusted profit between $7.60 and $7.90 per share, while analysts expected $7.77.

(Reporting by Kannaki Deka in Bengaluru; Editing by Devika Syamnath)