(Reuters) – Industrial conglomerate 3M Co on Tuesday cut its full-year revenue and profit forecast, expecting to take a hit from rising inflation and shrinking overseas earnings due to a stronger dollar.
Shares of the company were down about 2% before the bell.
The surging U.S. dollar is likely to weigh on overseas earnings of the company, which operates in more than 70 countries and derives about 60 percent of its revenues from outside the United States.
3M results comes amid a shift in consumer spending from goods to services as high inflation has prompted households to cut back on purchasing big-ticket items like electronics and appliances.
The company now expects full-year revenue growth to fall between 3.5 and 3%, down from its previous forecast of 2.5 to 0.5%.
3M forecast adjusted earnings per share between $10.10 and $10.35 for the year, down from its previous guidance of $10.30 to $10.80.
(Reporting by Kannaki Deka in Bengaluru; Editing by Maju Samuel)
