The 3M logo on a building in Irvine, Calif., on April 13, 2016. Mike Blake/Reuters U.
S. industrial conglomerate 3M Co MMM-N cut its forecast for 2025 profit on Tuesday as tariff tensions mount, sending its shares down 2.5 per cent in premarket trading.
Global trade tensions have heightened since China imposed a 125 per cent tariff on U.S. imports, retaliating against President Donald Trump’s decision to raise tariffs for Chinese imports to 145 per cent.
In March, 3M said China accounted for roughly 10 per cent of its global revenue. U.S.
President Trump’s tariffs have fueled concerns about an economic slowdown and a decline in consumer sentiment, which could impact sales for the company’s consumer products, including its iconic Scotch tape and Post-it notes. Consumers’ 12-month inflation expectations surged to 6.7 per cent in April, the highest level since 1981.
The St. Paul, Minnesota-based company now expects a tariff-related negative impact of $0.20 to $0.
40 per share on its full-year adjusted profit forecast of $7.60 to $7.90.
It posted a first quarter adjusted profit of $1.88 per share higher than analysts’ average expectations of $1.77 per share, according to data compiled by LSEG.
The company’s adjusted net sales for the first quarter came in at $5.78-billion, compared with Wall Street expectations of $5.75-billion.
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Business
U.S. industrial conglomerate 3M cuts 2025 profit forecast amid trade tensions
3M now expects a tariff-related negative impact of US$0.20 to US$0.40 per share on its full-year adjusted profit forecast of US$7.60 to US$7.90