Shares in industrial conglomerate 3M (NYSE: MMM) declined by more than 3% by midday today. The move comes after a disappointing earnings report and guidance from home improvement store The Home Depot.
If you are wondering what home improvement has to do with an industrial stock, it's worth remembering that 3M's consumer business group is one of its four operating segments. Moreover, with $538 million in sales in the fourth quarter, 3M's home-improvement-related sales are responsible for around 43% of the segment's sales.
In addition, if there's weakness in spending in an interest-rate-sensitive sector like housing, it could cross over into another significant end market for 3M, namely automotive. 3M's automotive exposure is spread across three segments: consumer, transportation and electronics, and safety and industrial.
Source Fool.com