Solventum forecasts annual profit above estimates on strong surgical product sales
Feb 27 (Reuters) - 3M spin-off Solventum (SOLV.N), opens new tab forecast annual profit above analyst estimates on Thursday, betting on strong sales of its wound care and surgical sterilization products.
Minnesota-based Solventum is one of the largest providers of sterilization devices, wound dressings, medical tape and other hospital consumables used by healthcare facilities.
More than half of its revenue comes from its MedSurg business, which provides wound dressings and surgical equipment. Sales in the segment were $1.17 billion during the quarter.
The company's performance has come under scrutiny from activist investor Nelson Peltz.
Peltz's Trian Fund Management said in a letter to shareholders in January the company should simplify its segments to improve execution at its core medical surgery business.
Trian, which owns around 5% of Solventum's shares and is the largest active shareholder, also said divestitures could accelerate the company's ability to reduce debt.
Contract drug manufacturer Thermo Fisher Scientific (TMO.N), opens new tab said earlier this week it will buy Solventum's purification and filtration business for about $4.1 billion.
Peltz's hedge fund plans to push Solventum towards further business separations, the Wall Street Journal reported on Wednesday.
The company forecast 2025 adjusted profit to be in the range of $5.45 to $5.65 per share, the midpoint of which is above analysts' average estimate of $5.49 as per data compiled by LSEG.
The forecast includes its purification and filtration segment, the company said.
Solventum reported total sales for the quarter ended December 31 of $2.07 billion, a 1.9% rise from a year earlier.
Solventum's organic sales growth was primarily driven by the MedSurg and dental solutions segments, it said.
The company's net income fell to $30 million, or 17 cents per share, in the quarter, from $272 million, or $1.57 per share, a year earlier.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
31 minutes ago
- Reuters
Japan wholesale inflation slows in May
TOKYO, June 11 (Reuters) - Japan's wholesale prices rose 3.2% in May from a year earlier, data showed on Wednesday, slowing from April in a sign falling import costs for raw materials were easing price pressures for companies. The rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, compared with a median market forecast for a 3.5% annual increase and follows a revised 4.1% increase in April. The yen-based import price index fell 10.3% in May from a year earlier after a revised 7.3% drop in April, the data showed, indicating the currency's rebound was pushing down the cost of raw material imports.
Reuters
4 hours ago
- Reuters
TRADING DAY Buoyancy trumping uncertainty
ORLANDO, Florida, June 10 (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. Global markets remain buoyant, awaiting the outcome of U.S.-China trade talks in London and U.S. inflation figures on Wednesday, both of which could have a bearing on guidance from the Federal Reserve next week and investor sentiment more broadly. In my column today I look at how the Trump administration's crackdown on immigration could cause labor market distortions and headaches for Fed officials. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Buoyancy trumping uncertainty On the day The World Bank slashed global growth forecasts, warning of the "significant headwind" from tariffs and heightened uncertainty, global stocks clocked their fifth consecutive all-time high. Britain's benchmark FTSE 100 is a whisker from reaching new peaks and Germany's DAX hit an all-time high last week, while on Wall Street the Nasdaq and S&P 500 are within a couple of percentage points of new record levels also. Yet the reasons for equity investors to be fearful right now are plentiful - worries over growth, inflation, tariffs, long-term interest rates, U.S. debt and deficits, and the fact that China, the world's second-largest economy, is still mired in a low growth and deflationary funk. Something not quite adding up, right? Perhaps. On the other hand, the fiscal taps are being turned on in China and Germany, British finance minister Rachel Reeves outlines her multi-year 2 trillion pounds ($2.7 trillion) spending plan on Wednesday, and U.S. President Donald Trump's 'big beautiful bill' currently going through Congress is front-loaded with fiscal stimulus too. None of that is really fresh news but the upshot is a lot of liquidity coursing through the global economy. Right now it is something investors appear willing to accept even if the price is increased debt, and for the U.S. and UK in particular, worse public finances. Big corporate deals are being struck, like the OpenAI and Google cloud service tie-up and Meta Platforms reportedly paying $15 billion for a 49% stake in AI startup Scale AI, and implied equity and bond volatility is low. After a period of fretting more about deficits and spiking bond yields, investors may now be viewing the future with their glass half full. Fiscal stimulus is coming and interest rates around the world are being cut. The monetary outliers are Japan and the U.S., but the Bank of Japan could be near the end of its tightening cycle and the Fed may be about to begin easing later this year. On top of this, there's a general belief that Trump will back down from his hardline stance on tariffs and that a palatable deal with China will be reached, the so-called 'TACO' - Trump Always Chickens Out - trade. Fresh news on that front, at least, should be forthcoming on Wednesday. Trump immigration crackdown creates jobs distortions, Fed headaches Seismic shifts in immigration are distorting the U.S. employment picture, making it harder for investors and policymakers to know exactly how much the labor market is actually slowing. Assuming the Trump administration makes good on its pledge to reduce immigration, either by stopping the flow of people coming into the country or by deporting many already here, the labor supply will shrink. The long-term impact of lower immigration is generally agreed to be negative, as new workers are needed to replace retirees, fill job vacancies and drive economic growth. Over time, fewer new workers will likely mean lower growth. But in the short term, a smaller pool of workers results in a tighter labor market, which keeps a lid on the unemployment rate, albeit artificially and probably temporarily. This may already be playing out. Figures released last week showed that employment in May fell by 696,000 jobs. That's the biggest single monthly decline since the historic losses seen during the pandemic in early 2020. Some economists argue that the recent drop is a consequence of Trump's immigration crackdown. Nonfarm payrolls rose 139,000. Meanwhile, the unemployment rate held steady at 4.2%, which though higher than it was two years ago, is still historically low by any measure. All else being equal, this points to a tight labor market, which should put upward pressure on wages and perhaps even warrant a more hawkish policy stance from the Federal Reserve. But that is almost certainly a misreading. When labor supply and the labor force participation rate fall, this brings down a country's so-called 'breakeven' job growth. That's the number of net new jobs the economy needs to keep up with growth in the working-age population and maintain a steady unemployment rate. That figure is falling, and if the Trump administration toughens up its anti-immigration policies further, this decline is likely to accelerate. According to economists at Morgan Stanley, breakeven employment growth averaged 210,000 jobs a month last year, and is averaging 170,000 so far this year. They reckon it will fall to 90,000 by the end of this year and 80,000 next year. Ryan Sweet, chief U.S. economist at Oxford Economics, goes further, estimating that the breakeven rate is "quickly approaching" 50,000 jobs a month due to weakening labor supply growth, primarily because of reduced immigration. "The unemployment rate can remain low, but for the wrong reasons," Sweet says. If these projections prove accurate, monthly employment and job growth could continue to slow without raising the unemployment rate. The contradictory signals this sends could create confusion for both investors and policymakers. In his press conference after the most recent Fed policy meeting, Chair Jerome Powell repeatedly told reporters that the labor market is "solid". The unemployment rate "remains low," and the labor market is "at or near maximum employment." If these headline indicators are the gauge, Powell is absolutely correct. But he also stressed that policymakers are looking at the "whole huge array" of labor market indicators for a truer guide. One of those inputs in the months ahead will no doubt be net immigration. And that could generate significant uncertainty, as there are huge gray areas and wide margins of error when trying to estimate net immigration and its impact on the labor market. In January, the non-partisan Congressional Budget Office projected net immigration of 2 million people this year and 1.5 million next year, down from an estimated 3.3 million in 2023. With Trump seemingly hardening his stance on immigration, those projections could turn out to be far too high. Morgan Stanley's economists just slashed their immigration forecasts to 800,000 this year and 500,000 next year. If these figures turn out to be closer to reality, we could soon be looking at a "tight" labor market with monthly payrolls gains of well under 100,000. Pity the poor Fed Chair who has to communicate policy in that environment. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
Business News Wales
4 hours ago
- Business News Wales
Awards Recognise Training Company's Apprenticeship Stars
Winners of the Apprenticeship, Employment and Skills Awards organised by Cambrian Training Company. The achievements of apprentices, employers and work-based learning practitioners from across Wales were celebrated at an awards ceremony in Mid Wales. Twenty-seven finalists competed for the Apprenticeship, Employment and Skills Awards organised by work-based learning provider Cambrian Training Company. The awards, held at The Metropole Hotel & Spa, Llandrindod Wells, recognised employers, learners and practitioners who have excelled in apprenticeship programmes delivered by the Welshpool-based company and its sub-contractors. A popular winner was autistic apprentice Aaron Jones, a waiter at Penycae Inn, Penycae, near Swansea, who received a standing ovation after collecting the Apprentice Special Recognition 2025 Award. 'In receiving this very special award, I am enormously proud and owe it to every single person in the audience but above all to my fellow team of staff at Penycae Inn and to those that have autism and other profound learning needs,' he told the audience. 'As a person with autism who works in the hospitality industry, this award means so much to me. Anybody with a learning or physical disability who is considering doing an apprenticeship should absolutely go for it.' He praised Cambrian Training Company's hospitality training officers Andrew Addis-Fuller and Leah Williams for their support and encouragement to achieve his goals, which include completing his Hospitality Supervision and Leadership Apprenticeship early next year. Aaron Jones from Penycae Inn receives the Apprentice Special Recognition 2025 Award from Arwyn Watkins, OBE The Foundation Apprentice of the Year was awarded to Cameron Long, a cleaning support services attendant at Elite Clothing Solutions, Ebbw Vale, who has completed a Supported Shared Apprenticeship with support from Elite Supported Employment. Apprentice of the Year was Cai Watkins, head of business unit contract manager for Cambrian Training Company, Welshpool, while the Higher Apprentice of the Year award went to Mathew Verallo, operations manager for The Celtic Collection's Tŷ Milford Waterfront, Milford Haven. The awards for employers was keenly contested. The Small Employer of the Year was Silver Assist Homecare, Llangorse, Brecon, Filco Markets, Llantwit Major collected the Medium Employer of the Year Award and Achieve Together, Cardiff was named Large Employer of the Year. Outstanding Individual of the Year was Denise Hodson, a playworker at Little Disciples Childcare, Penymynydd, Flintshire and Welsh Ambassador of the Year was Phoebe Wilson, lead training officer at Clybiau Plant Cymru Kids' Clubs, Cardiff. Practitioner of the Year was Elfed Wood, from Portal Training, Cardiff, the Employer Special Recognition Award went to The Grove, Narbeth and Kepak, Merthyr Tydfil was recognised for Outstanding Contribution to Apprenticeships. 'Among our winners and finalists are inspiring stories of personal growth and professional development,' said Faith O'Brien, Cambrian Training Company's managing director. 'This year's awards ceremony was a testament to the dedication, passion and hard work of our apprentices, employers and supporters. From the Apprentice of the Year awards to the recognition of outstanding employers and individuals, each accolade reflects the transformative power of apprenticeships in shaping careers and communities. 'Let's continue supporting and championing vocational education. Together, we can create a future where every individual has the opportunity to thrive through learning and development.' The other finalists were: Foundation Apprentice of the Year Award: Josh Williams, a receptionist at Whitbread Premier Inn, Bangor and Leanne Barratt, a chef at Mitchell & Butlers' Miller & Carter, Killay. Apprentice of the Year Award: Deanne Rance, area manager for Lonetree-McDonalds, Newport and Jodie Bowater, hotel manager Whitbread Premier Inn, Bangor. Higher Apprentice of the Year: Ashley Richards, general manager at Peppermint Cardiff and Keri-Ann Evans, head chef at Bluestone, Narberth. Outstanding Individual of the Year: Rachael Bowles, blending room team leader for Hilltop Honey, Newtown and Aaron Jones, a waiter at Penycae Inn, Penycae, near Swansea. Small Employer of the Year: Nazareth House, Cardiff and Interplay, Penlan, Swansea. Medium Employer of the Year: Voco St David's Cardiff and The Grove, Narberth. Large Employer of the Year: Kepak, Merthyr Tydfil and Urdd Gobaith Cymru. Welsh Language Ambassador: Catherine Smith, training officer at Clybiau Plant Cymru Kids' Clubs and Samantha James, restaurant manager at Millie & Sid's, Tywyn. Work-based Learning Practitioner: Sean Williams from Sirius Skills Consulting, Mountain Ash and Sarah Bird from Clybiau Plant Cymru, Cardiff.
