Industrial giant 3M raised annual profit forecast on Tuesday, driven by cost-cutting measures and a strategic shift toward high-margin products, sending its shares up as much as 1.68% in premarket trading.

Under CEO Bill Brown, 3M has steered toward product innovation and pivoted away from its earlier emphasis on managing legal risks and cutting supply-chain costs.

The conglomerate forecasts 2025 operating margin to expand 180 to 200 basis points, compared with its previous projection of a rise of 150 to 200 basis points.

It expects 2025 adjusted profit to be between $7.95 and $8.05 per share, compared with its previous forecast of $7.75 to $8 per share.