3M exceeds expectations despite mixed impact of COVID-19, says GlobalData

Following 3M’s Q1 earnings announcement;

Azadeh Laffafian, Medical Device Analyst at GlobalData, a leading data and analytics company, offers her view:

“3M is the largest player in the US N95 respirator market, accounting for over 60% of the sales. The company has doubled the production of its respirators to 100 million per month, to help protect healthcare workers during the COVID-19 pandemic. However, the demand is immense and healthcare workers continue to experience shortages. 3M has indicated that it will continue to ramp up production.   

“Overall, 3M has exceeded expectations for Q1. Due to the diversity of products sold by 3M, the COVID-19 pandemic has had a mixed impact on its business. The company experienced a surge in demand for N95 respirators in addition to growth in other areas such as drug delivery, medical solutions and general cleaning supplies. However, other aspects of its business such as oral care and office supplies suffered.

“Due to the uncertainly caused by COVID-19, 3M withdrew its 2020 outlook. The company will now provide monthly updates. 3M expects Q2 2020 to be the weakest quarter for global economic activity.”

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