MMM Just Warned....

Discussion in 'Stocks' started by capmac, Jul 7, 2006.

  1. capmac


    MMM 3M guides Q2, FY06 below consensus, cites lower sales volumes, higher start-up costs (81.39 )

    As mentioned in 09:01 headline, co issues downside guidance for Q2 (Jun), sees EPS of $1.04-1.09, ex $0.08-0.10 in gains from tax adjustments, vs. $1.17 Reuters Estimates consensus; sees Q2 (Jun) revs of $5.7 bln vs. $5.72 bln consensus. Co issues downside guidance for FY06 (Dec), sees EPS of $4.45-4.57, ex $0.08-0.10 in gains from tax adjustments, vs. $4.67 consensus. Company comments on guidance, "This second quarter performance was impacted in large part by lower than expected sales volumes and higher than anticipated new capacity start-up costs in its optical systems division, a part of 3M's Display and Graphics business segment. 3M develops and manufactures the world's broadest line of proprietary optical films that enhance the brightness and viewing angle of all types of LCD displays". CEO comments, "As other companies in the LCD industry have recently noted, the industry has experienced an increase in inventory levels over the last few months, particularly in desktop monitors, which has significantly impacted sales of 3M optical films".