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3M (MMM) Sells Floor Products Arm, Revamps Business Portfolio
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3M Company (MMM - Free Report) recently announced that it has completed the divestment of its floor products business, based in Western Europe, to Gerflor Group. The financial terms of the transaction were kept under wraps.
3M’s shares gained 1.7% yesterday to eventually close the trading session at $147.22.
Gerflor Group is a leading provider of flooring solutions and wall finishes to several end markets, including housing, education, healthcare, retail and hospitality. Some of the company’s notable brands are Mipolam, Taraflex, Tarabus, DLW and Gradus.
Inside the Headlines
3M’s floor products business operated as a unit of the company’s construction and home improvement markets division. The business provides floor transition, flexible baseboards and stair nosing products. It’s worth noting that the business generated sales of about EUR 25 million in 2021.
The divestment is in sync with 3M’s strategy of restructuring its business portfolio. The transaction will enable the company to better focus on and efficiently direct resources to its core businesses within the construction and home improvement markets division, thus offering value to its shareholders.
The transaction, which included the company’s production facilities, based in La Mure, France, also involved the transfer of about 100 workers to Gerflor. 3M anticipates the transaction to not have any material impact on its financial results.
Zacks Rank, Price Performance and Estimate Revisions
The company stands to gain from healthy business in advanced materials, abrasives, electrical, consumer health, food safety and other markets in the quarters ahead. Its solid product portfolio, marketing activities and shareholder-friendly policies are also likely to be beneficial. However, supply-chain challenges, logistic issues and cost inflation might adversely impact its performance.
In the past 30 days, the Zacks Consensus Estimate for earnings has decreased 0.2% to $10.43 for 2022 but increased 0.6% to $11.14 for 2023.
Image Source: Zacks Investment Research
In the past three months, the stock has lost 16.9% compared with the industry’s decline of 10.7%.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
In the past 30 days, Griffon’s earnings estimates have increased 9.9% for fiscal 2022 (ending September 2022). GFF’s shares have lost 14.4% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 35.1%, on average.
In the past 30 days, Carlisle’s earnings estimates have increased 8.9% for 2022. CSL’s shares have lost 1.2% in the past three months.
AZZ Inc. (AZZ - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 16.9%, on average.
AZZ’s earnings estimates have been stable for fiscal 2022 (ended February 2022, results awaited) in the past 30 days. AZZ’s shares have declined 7.4% in the past three months.
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3M (MMM) Sells Floor Products Arm, Revamps Business Portfolio
3M Company (MMM - Free Report) recently announced that it has completed the divestment of its floor products business, based in Western Europe, to Gerflor Group. The financial terms of the transaction were kept under wraps.
3M’s shares gained 1.7% yesterday to eventually close the trading session at $147.22.
Gerflor Group is a leading provider of flooring solutions and wall finishes to several end markets, including housing, education, healthcare, retail and hospitality. Some of the company’s notable brands are Mipolam, Taraflex, Tarabus, DLW and Gradus.
Inside the Headlines
3M’s floor products business operated as a unit of the company’s construction and home improvement markets division. The business provides floor transition, flexible baseboards and stair nosing products. It’s worth noting that the business generated sales of about EUR 25 million in 2021.
The divestment is in sync with 3M’s strategy of restructuring its business portfolio. The transaction will enable the company to better focus on and efficiently direct resources to its core businesses within the construction and home improvement markets division, thus offering value to its shareholders.
The transaction, which included the company’s production facilities, based in La Mure, France, also involved the transfer of about 100 workers to Gerflor. 3M anticipates the transaction to not have any material impact on its financial results.
Zacks Rank, Price Performance and Estimate Revisions
3M, with approximately $84.1 billion market capitalization, currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company stands to gain from healthy business in advanced materials, abrasives, electrical, consumer health, food safety and other markets in the quarters ahead. Its solid product portfolio, marketing activities and shareholder-friendly policies are also likely to be beneficial. However, supply-chain challenges, logistic issues and cost inflation might adversely impact its performance.
In the past 30 days, the Zacks Consensus Estimate for earnings has decreased 0.2% to $10.43 for 2022 but increased 0.6% to $11.14 for 2023.
Image Source: Zacks Investment Research
In the past three months, the stock has lost 16.9% compared with the industry’s decline of 10.7%.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies are discussed below.
Griffon Corporation (GFF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 30 days, Griffon’s earnings estimates have increased 9.9% for fiscal 2022 (ending September 2022). GFF’s shares have lost 14.4% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 35.1%, on average.
In the past 30 days, Carlisle’s earnings estimates have increased 8.9% for 2022. CSL’s shares have lost 1.2% in the past three months.
AZZ Inc. (AZZ - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 16.9%, on average.
AZZ’s earnings estimates have been stable for fiscal 2022 (ended February 2022, results awaited) in the past 30 days. AZZ’s shares have declined 7.4% in the past three months.