3M Profit Up 3.4 Percent, Held Back By LCD Drop

MINNEAPOLIS (AP) — 3M says its second-quarter profit rose 3.4 percent as slowing demand for films for LCD televisions dampened strong growth across its other businesses.

3M makes office supplies such as Scotch tape and Post-it notes, as well as coatings for television screens, roofing shingles and other industrial supplies.

It earned $1.16 billion during the quarter, or $1.60 per share. Revenue rose 14 percent to $7.68 billion. That was better than analysts expected.

The Japan earthquake in March hurt sales growth by 2.4 percentage points, and cut 7 cents per share from 3M’s profit.

3M Co. has been coping with a slowdown in films that coat the screens of LCD televisions. But sales in that unit dropped 22 percent in the last quarter, faster than 3M had expected.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Ronaldus Magnus

    Don’t tell Obama. Making a profit these days is like painting a big target on your back. First you get demonized, then you get fleeced. Then when you flee to a friendlier tax climate offshore you get vilified for sending jobs overseas.

  • Dave Campbell

    I’m sure that with profits up and their corporate tax burdens at an all time low that we will soon see them creating thousands of jobs! Isn’t this what the GOP claims will happen if we keep their corporate taxes low?

    • dan

      They have already created thousands of Jobs for Minnesota workers. The low tax burden keeps them in Minnesota. You would be the first one to scream we are sending jobs overseas if they picked up shop for friendlier tax havens.

  • Common sense

    Apparently Obama’s health plan hasn’t yet destroyed the great american business model.

    As for the tax hike, well as long as those that control the big business decisions (that also have millions in stock options, perhaps billions) they don’t really have to worry about their jobs, because their income is strictly on stock and company performance. So honestly, if I’m one of those people, then why would I not move the company overseas to save money (if it truly does)?

    There are two very good reasons why corporate america will not move their entire operations overseas, COMFORT AND CONTROL. They can better make decisions in the US based on political climate, gauge social changes, and better anticipate change in general. Just look at some of the businesses in China that have a much higher PE ratio to their earnings.

    And honestly, the minute they move operations to a foriegn country they must learn that language to feel comfortable enough to manage Operations and the reports that come out of there. At least if it was my company I would need to know the language and be able to communicate to get a feel of the land.

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