(Reuters) -3M Co on Tuesday raised the lower end of its full-year adjusted profit forecast, after strong demand for its electronics and industrial products helped the U.S. conglomerate beat quarterly profit estimates.
The company's shares rose 4.2% to $140.5 in premarket trading.
A rebound in demand for electronics used in vehicles and mobile phones boosted profits at the company, which had been grappling with a slowdown as high inflation led consumers to postpone expensive purchases.
The broader industrial sector is also expected to benefit from a boost to consumer spending after the U.S. Federal Reserve cut borrowing costs in September, analysts said.
3M has cut jobs and spun off its healthcare business into a publicly traded company in recent quarters to mitigate the impact of a slowdown in demand.
Sales in its transportation and electronics segment, which makes display materials for mobile phones and cars, rose 1.8% from a year earlier.
In its industrial and security segment, which makes adhesives for industrial use, sales increased 0.5% from the previous year.
The company reported adjusted earnings of $1.98 per share for the third quarter, compared with $1.68 per share a year earlier.
St. Paul, Minn.-based 3M now expects its full-year adjusted profit to be between $7.20 and $7.30 per share, compared with its previous forecast of $7.00 to $7.30 per share. action.
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