3M shares rose on better-than-expected results

• 3M shares rose Tuesday after the company beat fourth-quarter earnings and revenue estimates on what it called “broad-based growth” and strong holiday sales.

• Sales rose in transportation, electronics, safety and industrial units.

• 3M said the restructuring program that began in 2023 is largely complete.

3M(Mmm) Shares rose on Tuesday after the industrial group beat fourth-quarter earnings and sales estimates due to higher demand for a wide range of its products.

The maker of Post-it notes and Scotch tape reported adjusted earnings per share of $1.68, above analyst estimates compiled by Visible Alpha. Revenue rose 0.1% from last year to $6 billion, and $5.8 billion excludes revenue from so-called “Chemicals forever“, which will no longer be produced. Both numbers were ahead of expectations.

The company attributed the sales gains to “broad-based growth in the industry, stronger electronics and aerodynamics, softer vehicle manufacturing, and a strong holiday season.”

Revenue at the company’s transportation and electronics unit rose 3.4% to $7.5 billion due to “new product launches and gains in specifications that led to stock gains.” It rose 0.7% to $11 billion in the Safety and Industrial sector due to higher demand for roofing products and industrial adhesives. Revenue fell 1.2% to $4.9 billion in the consumer division.

3M added that its restructuring program was launched in 2023 to focus on streamlining and improving operations. Footnotes “Pretty much complete.”

3M shares jumped more than 4% to $146.99 in intraday trading Tuesday after the release, their highest level in three years.

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