Several large Minn. companies see 2Q earnings riseby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — Second-quarter earnings rose for several companies based in Minnesota or with a large presence in the state.
Earnings increased for 3M, St. Jude Medical, Nash Finch and Deluxe, but profits fell for Travelers Companies.
Maplewood-based 3M said it's optimistic about a global economic recovery and has raised its earnings forecast for the year.
3M is considered an economic bellwether because of its broad base of products. The company, which makes everything from post-it notes to components for flat-panel TVs, said its second-quarter profit hit $1.1 billion. That was a 43 percent increase over the same quarter a year ago. Sales rose nearly 20 percent to $6.7 billion.
The company now expects full year earnings of $5.65 to $5.80 per share. Wall Street was expecting $5.63.
CEO George Buckley said sales were especially good in foreign countries with strong industrial bases.
"Export-led manufacturing economies like Germany, Japan, China, Korea and Taiwan all appear to be remaining robust at this time," he said. "So, overall we remain cautiously optimistic and think the risk of a second economic collapse is small."
3M's sales in Asia rose 42 percent. But U.S. sales were up just 9 percent. The company had double-digit sales growth in several sectors, including renewable energy, automotive, abrasives, and display and graphics.
3M says it's optimistic about the pace of the global economic recovery and raised its full-year outlook while reporting stronger second-quarter profit.
ST. JUDE MEDICAL
St. Jude Medical, based in Little Canada, reported better-than-expected quarterly profits and sales.
The medical device maker had net earnings of $254 million, about a 16 percent increase over the same quarter a year ago. Net sales rose 11 percent to $1.31 billion.
Sales rose in part because rival Boston Scientific had to suspend its sale of implantable heart defibrillators for a month.
St. Jude said its sale of the implantable defibrillators, also known as ICDs, rose 18 percent in the quarter to $471 million. It estimated that $15 million of those sales stem from the Boston Scientific sales suspension, as Boston Scientific sought clearance from U.S. health regulators for manufacturing changes.
Profits fell at Travelers Companies, which has one its three headquarters in St. Paul.
The big insurance company said net income fell 9 percent to $670 million.
Travelers said it was hurt by rising catastrophe losses. The company said it had paid $439 million, before taxes, to cover losses from severe wind and hail storms and flooding. During the quarter, Tennessee, Mississippi and Kentucky suffered from floods.
Shoreview-based Deluxe Corporation earned $33.6 million in the second quarter, about a 21 percent jump over the same quarter in 2009. Sales rose about 5 percent to $348 million.
Small business services revenue rose, But financial services revenue dropped.
The decline was primarily due to fewer check orders, as check usage declined and the economy sputtered.
Edina-based Nash Finch, one of the leading food distribution companies in the United States, saw its quarterly sales drop 5 percent year-over-year to $1.15 billion, but earnings rose about 13 percent to $10.7 million.
(MPR wire services contributed to this report.)