3M stands by forecast, shares up 8%

3M Co. stood by its full-year financial guidance while acknowledging new risks from the unfolding trade war, compounding the challenges for Chief Executive Officer William Brown as he tries to turn around the sprawling Maplewood-based manufacturer.

Tariffs will have a negative impact of as much as 40 cents a share on full-year earnings, the company said Tuesday in a statement as it reported first-quarter results. Still, 3M reaffirmed guidance for 2025 adjusted profit of $7.60 to $7.90 a share.

Shares rose 8.1% Tuesday and contributed to a broad market rally.

The caveat on its outlook highlights how President Donald Trump’s trade war is rippling across the economy and cutting into growth expectations. 3M as recently as March reiterated its full-year guidance that called for a bigger profit and organic sales growth of 2% to 3%.

Sales for the first-quarter fell 1% to $6 billion and adjusted earnings per share from continuing operations were $1.88, both ahead of analyst expectations. Adjusted operating margin of 23.5% also beat estimates.

Tesla sees 70% drop in earnings

Tesla’s first-quarter profits plunged by more than two-thirds amid a backlash against Elon Musk’s electric car company that has hurt sales and sent its stock plunging.

The Austin, Texas, company said Tuesday that quarterly profits fell by 70% to $409 million, or 12 cents a share. That’s far below analyst estimates. Tesla’s revenue fell 9% to $19.3 billion in the January through March period, below Wall Street’s forecast.

Tesla’ stock has fallen more than 40% this year but rose slightly in after-hours trading.

IMF pares global forecast

The U.S. and global economies will likely slow significantly in the wake of President Donald Trump’s tariffs and the uncertainty they have created, the International Monetary Fund said Tuesday.

The IMF said that the global economy will grow just 2.8% this year, down from its forecast in January of 3.3%, according to its latest World Economic Outlook. And in 2026, global growth will be 3%, the fund predicts, also below its previous 3.3% estimate.

And the Fund sees the world’s two largest economies, China and the United States, weakening. The IMF doesn’t expect a U.S. recession, though it has raised its odds of one this year from 25% to about 40%.

China is now projected to expand 4% this year and next, down roughly half a point from its previous forecasts.

Boeing spins off tech unit for $10B

Boeing announced Tuesday that it would sell a handful of navigation, flight planning and other businesses for more than $10.5 billion as the company works to refocus on manufacturing planes and other aircraft.

The company said it would sell four businesses from a digital unit to Thoma Bravo, a private equity firm specializing in software. Those include Jeppesen, which provides navigational charts and information to pilots, and ForeFlight, an app that helps plan flights and monitor weather.

The company said it expected to close the all-cash deal by the end of the year.

— From news services