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3M set a negative tone with a downbeat view on the economy and a lower forecast for full-year earnings.
While this year's figure has been revised up, it is disappointing that this is still a lower forecast than the IMF was making at the start of this year".
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The company also issued 2001 earnings estimates that were in line with a lowered forecast that it issued last month.
Another reason was a lowered forecast for revenue growth for newspapers, which she attributed to the fact that retail advertising this year "has not met expectations".
It contains a lowered forecast for US economic growth, Bloomberg says, will GDP expanding by 1.7% instead of 2% due to the automatic budget cuts and tax changes that have kicked in this year.
The company said the lower forecast was a result of the falling United States dollar and the weak bond market.
Even with the lower forecast, this translates into a 24% earnings gain this year and a 26% gain in 2003.
The company said that in the future it planned to pursue much more conservative accounting practices, which has already resulted in a lower earnings forecast for 2003.
Corn rose on signs that farmers are collecting less grain per acre than expected, fueling speculation about a lower crop forecast.
Now it has reported that it made fewer client wins than expected since the placing, with a lower than forecast contract size.
"The general background remains good news for the Chancellor who will be able to announce a lower borrowing forecast as well as stronger growth," said Philip Shaw of Investec.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com