ST. PAUL, Minn. (AP) – 3M reported disappointing financial results for its first quarter due to the stronger U.S. dollar.
The maker of Post-it notes, industrial coatings and ceramics also lowered its outlook for the year and its shares fell before the stock market opened Thursday.
The stronger U.S. dollar has been a common complaint for companies that do business overseas. As the dollar surges against foreign currencies, it makes American-made products more expensive to foreign customers. And products that are sold in foreign countries translate into fewer U.S. dollars, hurting earnings and revenue for corporations. 3M said the stronger U.S. dollar hurt its pre-tax earnings by $90 million, or 10 cents per share, in the first quarter.
3M now expects earnings for the year to be between $7.80 per share and $8.10 per share, down from its previous forecast between $8.00 per share and $8.30 per share. The revised outlook missed Wall Street expectations. Analysts expected earnings of $8.14 per share for the year, according to FactSet.
As for 2015 revenue, 3M said it now expects it to fall by 6 percent to 7 percent from a year ago, worse than its previous forecast of a 4 percent to 5 percent drop. Analysts expected revenue to rise less than 1 percent to $32 billion, according to FactSet.