3M Business (MMM), a technology company that manufactures goods for different markets, from healthcare to shipping, records continuing recovery. The company will surpass its own revenue estimate for the year if revenues continue to rise at the current rate.
It is estimated that 3M’s fourth-quarter earnings will be between $8.2 billion and $8.4 billion. Revenues hit $23.6 billion in the first nine months of this year. Thus, those may vary from $31.8 billion to $32 billion at the end of the full year. Wall Street analysts’ estimates are very similar to the company’s own forecast. The revenue trends in October and November, however, show that 3M will beat both the predictions of Wall Street and its own.
In November, 3M reported positive growth in all directions, including transport, which in the second quarter saw a double-digit fall. The sectors of healthcare and consumer products, which have been sluggish in recent years, will rebound rapidly in 2020. At the same time, 3M sees healthcare segment growth as a possibility for potential margin expansion.
In order to improve its operating efficiency, 3M is currently modernizing its business. The organization will divest several units and invest in new promising areas as part of this plan. 3M has sold its drug distribution business and is considering selling its food protection business for $3.5 billion, according to unconfirmed reports. Around the same time, the company acquired a system developer of M*Modal to match with artificial intelligence components, as well as Acelity, a medical care system.
In order to properly plan internal resources, 3M has also made several improvements to the management system.
As well as the restructuring of the organization, the favorable sales trends build a forum for long-term development and enhancement of 3M’s operational efficiency. At present, the company has strong traction to rebound in 2021.
3M Company (MMM) was stable at +0.11% on Monday to conclude the trading at $174.71, a price level almost equal to that at beginning of this year.