3M reports ... stock dives

MMM Q3 2010 Earnings Call Transcript

3M calls growth in US and Europe 'uninspiring'

3M Co. said Thursday that growth in the U.S. and Western Europe is "uninspiring," and it continues to shift more of its business to faster moving emerging markets.

3M also said it doesn't see signs of a broad double-dip recession.

"More than a year ago we forecast economic growth would slow in 2010 in some of our markets," CEO George Buckley said in a conference call. "Some folks disagreed with us, thinking that perhaps we were being too conservative. But I think things have played out largely the way we anticipated and the trend is no longer a surprise."

The St. Paul, Minn., manufacturer still predicts a long recovery for U.S. commercial construction, but it said automotive markets are getting stronger.

The company lowered the top end of its forecast for the year, citing the impact of several recent acquisitions. Shares lost $5.61, or 6.2 percent, at $84.76 in afternoon trading.

3M is considered a key indicator of broader economic health because it makes everything from Post-Its to respirators. 3M also produces over 1,000 products for cars and roads; including abrasives and paint finishings, all-weather pavement markings and sheeting for reflective signs.

Comments: MMM

• Stock dives $ 6 today
  
• I still regard MMM as a buy! A solid dividend stock
  
• I'm still up by $ 6 over my purchase price of $ 78