While demand for goods has rebounded with massive stimulus and the reopening of economies, a labor shortage and soaring raw material prices have left U.S. manufacturers in the lurch.
Shares of 3M, however, were up 2.2 percent at $186.43 premarket as the biggest maker of N95 masks reported a better-than-expected quarterly profit and revenue on the back of sales growth in all its businesses.
3M, which makes everything from Post-It notes and adhesives to industrial sandpaper, also said annual sales are now expected to grow between 9 percent and 10 percent, compared to a prior forecast of 7 percent to 10 percent.
Last month, the company pointed to inflation coming in higher than expected, with cost pressures in resins, wood pulp, and labor.
3M now expects 2021 earnings per share between $9.70 and $9.90, versus its earlier forecast range of $9.70 to $10.10.
Third-quarter sales in the company’s safety and industrial unit grew 7.2 percent to $3.24 billion, while that of its consumer unit grew 8.1 percent to $1.53 billion.
Net income attributable to 3M rose marginally to $1.434 billion, or $2.45 per share, in the quarter ended Sept. 30.
Analysts on average expected the company to earn $2.20 per share, according to Refinitiv data.
Net sales rose 7.1 percent to $8.94 billion, beating estimates of $8.67 billion.