Published Tue, Jul 21, 2026 · 08:40 PM
[BENGALURU] 3M lifted its full-year profit forecast on Tuesday (Jul 21) on the back of cost-control measures, price hikes and continuing strength in its safety & industrial business.
The industrial giant said it expects higher pricing to “fully offset” a hit to its profit from oil-led inflation forecast in a range of US$150 million to US$175 million. 3M previously forecast a US$125 million annual cost impact from it.
Companies are grappling with rising costs as oil prices have risen to their highest levels in more than a month in July amid escalating US-Iran tensions and concerns over disruptions to energy supplies through the Strait of Hormuz.
3M now expects full-year adjusted profit per share between US$8.80 and US$8.95, compared with its earlier forecast of US$8.50 to US$8.70.
The company’s cost cuts, price hikes and the introduction of new products and customer service initiatives under CEO William Brown have helped the company cushion margins from weak demand against the backdrop of prolonged inflation.
Its largest segment by sales, the safety and industrial segment, saw an over 8 per cent rise in quarterly sales from a year ago, helped by strong demand across electrical markets, adhesives, abrasives and industrial specialties, as roofing granules returned to growth.
The transportation and electronics segment’s ongoing weakness in autos was offset by strength in data centres and semiconductor business, resulting in nearly 6 per cent segment sales growth.
Maplewood, Minnesota-based 3M’s quarterly adjusted profit came in at US$2.40 per share, compared with analysts’ estimate of US$2.25, according to LSEG-compiled data.
Second-quarter revenue rose 2.4 per cent to US$6.50 billion from a year ago. Analysts on average had expected US$6.41 billion.
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3M’s shares had risen 23.2 per cent since January 2025 up to the stock’s last close, versus a 21.3 per cent gain for the Dow Jones Industrial Average. REUTERS
