3M CFO Sees Negative Impact From Higher Inflation, Chip Crisis

3M Co MMM has doubled its previous estimate for the decline in new-vehicle production in this year’s second half due to concerns over the shortage of semiconductor chips.
CFO Monish Patolawala now expects auto production to decline 6%, from the previously expected decline of 3%.
Patolawala expects the chip crisis and higher inflation to affect its EPS by $0.65 - $0.80 for the year.
Patolawala said inflation is higher than what was expected in the third quarter.
Toyota Motor Corp TM, General Motors Co GM, and Volkswagen AG VWAGY have already slashed their production guidance due to the chip crisis.
In July, 3M had raised its EPS outlook to $9.70 - $10.10 for FY21.
Price Action: MMM shares closed higher by 0.37% at $185.23 on Monday.