(Reuters) – 3M spin-off Solventum raised its annual profit forecast on Thursday, betting on strong sales of its wound care and surgical sterilization products.
The company now expects annual adjusted profit in the range of $6.50 to $6.65 per share, compared to its previous estimate of $6.30 to $6.50 per share.
Minnesota-based Solventum is one of the largest providers of sterilization devices, wound dressings, medical tape and other hospital consumables used by healthcare facilities.
The company’s net income fell to $122 million, or 70 cents per share, in the quarter ended Sept. 30, from $460 million, or $2.66 per share, a year earlier.
The company’s profit fell by more than 70% in August on higher expenses — its first results as an independent company.
CEO Bryan Hanson said in August that the company is “currently assessing primary markets and growth drivers, and our intent is to finalize these decisions before the end of the year.”
Total third-quarter net sales was $2.08 billion, a 0.4% increase from a year earlier.
More than half of Solventum’s revenue comes from its MedSurg business, which provides wound dressings and surgical equipment. Third-quarter sales in the segment came in at $1.18 billion.
On an adjusted basis, Solventum earned a profit of $1.64 per share during the third quarter.
(Reporting by Sneha S K in Bengaluru; Editing by Shailesh Kuber and Alan Barona)
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