3M focuses on industrial products

Article Excerpt

3M COMPANY $147 remains a buy. The diversified manufacturer (New York symbol MMM; Manufacturing sector; Shares outstanding: 569.6 million; Market cap: $83.7 billion; Dividend yield: 4.0%; Takeover Target Rating: Medium; www.3m.com) now plans to spin off its Health Care division as a separate company. This business makes products that treat and prevent infections in wounds, dental filling materials, and filtration and purification products. It supplied 24% of 3M’s sales in 2021. Investors will receive shares in the new firm as a tax-deferred dividend. 3M will continue to hold 19.9% of the Health Care firm but plans to sell those shares over time. It expects to complete the transaction by the end of 2023. Meantime, due to rising raw material costs and a higher tax rate, 3M earned $2.48 a share in the three months ended June 30, 2022. That’s down 9.8% from $2.75 a year earlier. Sales fell 2.8%, to $8.70 billion from $8.95 billion. If you adjust for businesses it bought and sold and currency…

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