Conglomerates Sector Review: 3M Earnings, Sara Lee’s Jolt

3M Company (NYSE:MMM) says Electronics industry still adjusting inventories; toughest optical film comps in Q1. Says Western Europe continues to contract,China growth slower in 1H, re-accelerates in 2H. Estimating Q1 early retirement/restructuring costs of (4c) per share; reflected in EPS guidance. Says well positioned for a successful 2012. Comments from slides that will be presented on the Q4 earnings conference call.

The shares closed at $87.58, up $1.1, or 1.27%, on the day. Its market capitalization is $61.38 billion.

Koninklijke Philips (NYSE:PHG): Sara Lee (NYSE:SLE) announced it has agreed to enter into a nine-year exclusive partnership with Philips (NYSE:PHG) on Philips-branded consumer coffee systems that will drive innovation and expansion into new markets for its leading SENSEO coffee brand. Sara Lee and Philips currently co-own the brand, with each company having a 50% stake. Under the terms of the agreement, Sara Lee will pay Philips a total amount of EUR170M. Upon closing, Sara Lee will have full control of the SENSEO trademark, and is expected to expand into new coffee segments and markets. Philips will continue to design, manufacture and distribute all SENSEO machines over the next nine years as the brand builds on its leadership position.

The shares closed at $20.33, up $0.13, or 0.64%, on the day. Its market capitalization is $19.11 billion.

General Electric Company (NYSE:GE): GE Hitachi Nuclear Energy continues to expand its presence in the Finland. The company announced it has signed a new project development memorandum of understanding with Finnish software and systems engineering firm Space Systems Finland, which specializes in the validation and verification of safety critical software for various industrial sectors, including the aerospace and utility industries. Under the agreement, the companies will explore potential opportunities to collaborate on future nuclear power plant projects globally as well as in Finland as the utility Teollisuuden Voima Oyj is looking to build a fourth reactor at its Olkiluoto nuclear power station.

The shares closed at $19.07, down $0.06, or 0.31%, on the day. Its market capitalization is $201.33 billion.

United Technologies Corp. (NYSE:UTX) may announce plans at its March 15 investor meeting to sell some of its fire and security unit’s installation businesses to raise money ahead of its huge takeover, says CFO Greg Hayes, reports Reuters. Later this year, the company will need new shares to issue to close its $16.5N takeover of Goodrich (NYSE:GR).

The shares closed at $77.41, down $0.24, or 0.31%, on the day. Its market capitalization is $70.14 billion.

Raytheon Company (NYSE:RTN): The new budget to be proposed by Defense Secretary Leon Panetta may seek a greater role for the U.S. Navy’s Virginia-class submarines, built by General Dynamics and Huntington Ingalls (HII), reported Bloomberg. Panetta also will propose cutting Army staff to 490,000 from 562,000, the Marines to 182,000 from 202,000, and canceling the C-27J transport plane made by a L-3 Communications joint venture, the report added.

The shares closed at $49.89, up $0.18, or 0.36%, on the day. Its market capitalization is $17.27 billion.

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To contact the reporter on this story: Stella Mariz at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com