Oct 22 (Reuters) - 3M Co raised the lower end of its full-year adjusted profit forecast on Tuesday, after strong demand for its electronics and industrial products helped the U.S. conglomerate beat quarterly profit estimates.
Shares of the company were up 4.2% at $140.5 in premarket trading.
An uptick in demand for electronics used in vehicles and mobile phones boosted profit for the company, which had been grappling with a slowdown as high inflation led consumers to postpone big-ticket purchases.
The broader industrial sector is also expected to benefit from a boost to consumer spending after the U.S. Federal Reserve cut borrowing costs in September, analysts said.
3M has cut jobs and spun off its healthcare business into a listed company in recent quarters to mitigate the impact from a demand slowdown.
Sales in its transportation and electronics segment, which makes display materials for mobile phones and automobiles, increased by 1.8% from a year earlier.
In its safety and industrial segment, which makes adhesives for industrial use, sales went up by 0.5% from a year earlier.
The company reported an adjusted profit of $1.98 per share for the third quarter, compared with $1.68 per share a year earlier.
St. Paul, Minnesota-based 3M now expects its full-year adjusted profit to be between $7.20 and $7.30 per share, compared with its previous forecast of $7.00 to $7.30 per share.
Reporting by Kannaki Deka in Bengaluru; Editing by Pooja Desai
Source: Reuters