Image source: Banej / CC BY-SA
3M (NYSE:MMM) announced first-quarter results April 28 that were better than expected, beating analyst estimates on both the top and bottom line. MMM stock jumped on the news.
“When the virus broke out, we were able to immediately activate our surge capacity and maximize production,” chief executive Mike Roman said on the company’s earnings call. “Beginning in January, 3M doubled our global output of N95 respirators to about 100 million per month, including 35 million per month in the U.S.”
The company also said that it expects to get up to 50 million masks per month by June.
While 3M delivered to shareholders the first bit of good news it’s had in a long time, the company isn’t out of the woods by a long shot. If you think it’s headed back to $250, you might want to holster that excitement.
3M Pulls 2020 Guidance But Holds Dividend
According to TheStreet, 3M said it was cutting its full-year capital expenditure plans, but will keep its cash dividend in place. It will, however, suspend its share buyback plans and scrap its 2020 profit forecast.
“Given the breadth and diversity of our businesses, the financial impact of COVID-19 is varying across 3M,” said CEO Mike Roman. “In the first quarter we saw strong growth in personal safety, as well as in other areas of our portfolio experiencing high demand due to the pandemic.”