U.S. company 3M has trimmed its profit outlook for 2019 as improving air quality in China reduced demand for its respiratory products.
The NYSE-listed U.S. company, whose products range from Post-It Notes and industrial adhesives to respirators and computer monitor arms, said in a fiscal report released Tuesday that its full-year 2019 earnings are expected to be in the range of 10.45 U.S. dollars to 10.90 dollars per share, lower than a prior expectation of 10.60 dollars to 11.05 dollars per share.
Besides, 3M expected its full-year organic local currency growth to range between 1 percent and 4 percent, as compared with an earlier estimate of 2 percent to 4 percent.
"It's not a huge step down, but it's a revision down in the first half of the year really driven by China," local media quoted 3M's Chief Executive Officer Mike Roman as saying.
3M's Chief Financial Officer Nicholas Gangestad told analysts on the post-earnings call that total sales for the fourth quarter of 2018 in the Asia-Pacific region fell 0.8 percent amid continued lower demand for its consumer respiratory products, particularly in China due to improved air quality.
Data from China's Ministry of Ecology and Environment showed that air quality in China has continued to improve with 338 major cities reporting good air quality in 79.3 percent of days in 2018, up 1.3 percentage points from the previous year.
