Diversified U.S. manufacturer 3M Co reported a 17 percent drop in quarterly profit as the recession crimps demand for its Scotch tape, optical films for liquid crystal displays and other projects.
The company also said on Thursday it now expects organic sales for the year to drop by 10 percent to 13 percent, a more modest decline than its prior forecast for a fall of 11 percent to 15 percent. It now looks for 2009 profit of $4.10 to $4.30 per share, raising the low end of its forecast from $3.90.
3M said second-quarter net income came to $783 million, or $1.12 per share, down from $945 million, or $1.33 per share, a year earlier.
Revenue fell 15 percent.
The breadth of its operations and geographic reach make the St. Paul, Minnesota-based company a bellwether of the U.S. economy.
3M shares are up about 11.6 percent this year, outpacing a 1.2 percent rise in the Dow Jones industrial average <.DJI>.
(Reporting by Scott Malone; editing by John Wallace)