3M earnings rise on demand for medical masks

NEW YORK: Industrial giant 3M reported rising quarterly profits Tuesday as it ramps up production of N95 masks while combatting price-gouging and fraud during the coronavirus outbreak.

The company manufactures a wide range of products used in myriad industries, but has become prominent during the COVID-19 outbreak as one of the only producers of N95 “respirator” masks which can protect against the virus.

The masks have been an essential item to hospitals on the front line of the outbreak and have emerged as the object of illicit practices, price gouging and fraud, with new cases announced by federal officials in the last day. 3M experienced a 21 percent surge in sales in its health care business during the first quarter, a key driver of a 45 percent jump in first-quarter profits to $1.3 billion. Revenues climbed 2.7 percent to $8.1 billion.

“Even with 3M’s accelerated production, the stark reality is that global demand for respirators far outpaces the ability of the entire industry to deliver,” chief executive Mike Roman said on a conference call. “That is why as we urgently expand capacity, we are also prioritizing and triaging our supplies to the most critical needs.”

Executives described the overall impact of COVID-19 as “mixed” for 3M, with sales in several product lines declining due to shutdowns, including oral care, automotive, aerospace and general industrial.—AFP