Outlook improves

Monday, April 19, 2004 | 10:50 a.m.

ST. PAUL, Minn. -- 3M Co., the maker of Scotch tape, today said first-quarter earnings rose 44 percent as the economic rebound and new products helped boost sales of computer touch screens and safety equipment. The company raised its 2004 profit forecast.

Net income climbed to $722 million, or 90 cents a share, from $502 million, or 63 cents, in the first three months of 2003. Sales increased 14 percent to $4.94 billion from $4.32 billion, the company said in a statement.

Chief Executive James McNerney has raised 3M's 2004 forecast three times as cost cuts widen margins and consumers and companies increase spending. Sales have benefited from new products such as Scotchgard cleaner that prevents mildew and a film to make cell-phone screens brighter. 3M was able to raise U.S. prices last quarter, and sales and profit climbed in all seven business units.

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