3M Co. reported a first-quarter adjusted profit of $1.88 per share, surpassing Wall Street's expectations of $1.77 per share. The company's total net sales reached $5.78 billion, slightly above the anticipated $5.75 billion. Despite the strong performance, 3M highlighted potential challenges due to global trade tensions, forecasting a possible tariff-related impact of 20 to 40 cents per share on its 2025 adjusted profit forecast of $7.60 to $7.90. The company also noted that cost-cutting measures contributed to the earnings beat. The company's adjusted operating income margin improved to 23.5%, up 220 basis points from the previous year, reflecting successful cost-cutting initiatives. CEO Bill Brown, who assumed the role in May, has been implementing a restructuring plan aimed at enhancing efficiency and managing legal liabilities. 3M's shares rose 7% following the earnings announcement, buoyed by the beat on earnings and a 2.5% growth in sales within its safety and industrial segment. The company also mentioned that China accounted for roughly 10% of its global revenue, and it expects a potential annualized impact of tariffs before exemptions amounting to $850 million, of which U.S. and China tariffs comprise $675 million.