3M Co. mentioned on Tuesday demand for its N95 respirators had picked up because of a surge in Omicron-related COVID-19 instances, whereas reporting better-than-expected quarterly revenue as extra individuals bought its air filters and Scotch-branded merchandise.
In December, the US reported report excessive COVID-19 instances and hospitalization charges attributable to the extra transmissible Omicron variant that spurred demand for 3M's respirators.
Nevertheless, the corporate, which is the most important maker of N95 respirators in the US, anticipates that the demand will wane in 2022. It reported a 4% fall in its respirator gross sales for 2021.
The Dow Industrial Common element reported upbeat fourth-quarter revenue and income on the again of sturdy demand for its dwelling enchancment and private security merchandise.
The corporate's iconic Submit-it-branded merchandise additionally noticed a surge in gross sales regardless of office reopenings being pushed again because of the resurgence of COVID-19 instances.
The Saint Paul, Minn.-based firm continues to navigate provide chain disruptions, uncooked materials and logistics value inflation and a semiconductor scarcity.
"We expect macro-related headwinds plus the unfold of Omicron considerably will increase near-term progress/earnings volatility for the corporate," Citi analyst Andrew Kaplowitz mentioned.
3M additional pushed its costs excessive to fight the prices and inflationary pressures. "Our promoting worth actions proceed to achieve traction as we went via the quarter," chief monetary officer Monish Patolawala mentioned on a name with analysts.
3M's transportation & electronics and security & industrial models noticed 1.5% and a pair of.2% declines in gross sales.
Internet earnings attributable to 3M fell to US$1.34 billion, or US$2.31 per share, within the fourth quarter ended Dec. 31, from US$1.41 billion, or US$2.41 per share, a yr earlier.
Analysts on common had anticipated a revenue of US$2.02 per share, in accordance with Refinitiv information.
Internet gross sales edged 0.3% larger to US$8.61 billion, beating estimates of US$8.55 billion.
(Reporting by Aishwarya Nair in Bengaluru; Modifying by Maju Samuel)
A person holds a 3M N95 respirator earlier than an announcement at a facility in Brockville, Ont., Aug. 21, 2020. THE CANADIAN PRESS/Adrian Wyld
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