3M took a hefty loss this summer after agreeing to pay $6 billion to settle lawsuits over its Combat Arms earplugs.
Yet the Maplewood-based industrial giant saw its stock price rebound from a decade-long low on Tuesday as investors saw hints of a turnaround beneath the pricey settlement.
3M had a loss of $2 billion for the third quarter, or -$3.74 per share, when it recorded a $4.2 billion charge for the earplug settlement. Excluding one-time costs, 3M earned an adjusted $2.68 per share, beating Wall Street expectations.
"We're executing well and taking advantage of stabilizing supply chains," CEO Mike Roman said in an interview Tuesday. "We're also seeing benefits from our restructuring and delivering on what we said we would do."
Wall Street analysts expected adjusted earnings — which takes out PFAS (forever chemicals) production, ongoing litigation and health care spinoff costs — of $2.34 per share.
3M stock rose 5% Tuesday to close at $90.12 per share. The company's stock price had recently reached its lowest point in more than a decade.
Productivity improvements and benefits from restructuring helped increase profit margins even as sales shrank. Adjusted earnings were up 3% year over year.
The Post-it note and N95 mask manufacturer had $8.3 billion in total sales during the quarter. 3M's third-quarter revenue was $8.6 billion last year.