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(Reuters) -U.S. industrial conglomerate 3M Co on Tuesday raised its full-year profit forecast, benefiting from higher prices and cost-cut measures including significant layoffs.
The company, which makes everything from power tools to medical products, has been raising prices to offset a hit from mounting commodity costs. To counter the surge, 3M also reduced its total global workforce by 10% over two rounds of layoffs.
The maker of ‘Scotch’ tape and ‘Post-it’ note said it now expects its full-year profit to be between $8.60 and $9.10 per share, up from its prior guidance of $8.50 to $9.00.
“In the second quarter, the actions we took to strengthen our supply chain and restructure the company led to improved service for customers, reduced costs across 3M, and better-than-expected margins and cash flow,” said 3M Chairman and Chief Executive Officer Mike Roman.
Shares of the company were up 1.5% at $105.80 in premarket trading.
But the diversified manufacturer reported a quarterly loss compared to a year-ago profit, as it took a hit from a $10.3 billion settlement related to water pollution claims tied to “forever chemicals”.
Last month, the diversified manufacturer agreed to settle with a host of U.S. public water systems to resolve water pollution claims.
The St. Paul, Minnesota-based company reported a loss of $12.35 per share in the second quarter, compared with a profit of 14 cents a year earlier.
The loss includes the settlement amount payable over 13 years, which negatively impacted earnings per share by $14.19.
Revenue fell 4.3% to $8.3 billion.
Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli
