The 3M Company (NYSE:MMM) had the biggest decline among all companies at the Dow Jones Industrial Average (INDEXDJX:.DJI) following a sluggish sales increase for 2011 compared to the current year. According to the company, the sales volume might have an increase of between 5.5 to 7.5 percent by 2011, which is way below the 14 percent for 2010.
The company added that earnings will increase to around $6.10 next year, which includes an increase of $0.27 in pension expenses per share. This is lower than the experts’ average projection of $6.20.
According to Patrick Campbell, 3M Chief Financial Officer, the long range goal for sales growth is between 7 to 8 percent. The shares of the company declined by 3.1 percent or $2.69 to $84.19, which was the biggest decline in thirty companies listed in the Dow Jones Industrial Index. It was also the biggest drop of the company since October 28.
The company projects an income of around $30 billion for 2010 which is close to experts’ projection of around $29.2 billion.
According to Jack Windau, an analyst of Edward Jones, investors may profit from the international exposure of 3M particularly in India and China.
According to George Buckley, CEO of 3M, these areas contribute a third of the sales of the company and may increase to 45 percent in 2015.
The company kept the income forecast for 2010 which was at $5.74 per share with total sales reaching $26.4 billion, but the figure does not include Medicare expenses. Experts project $5.74 earnings per share with total sales reaching $26.5 billion.
The company also announced its biggest acquisitions in ten years at $2 billion with additions to medical, industrial, and security divisions. 3M acquired Attenti Holdings SA, Arizant Inc and Cogent Inc.