St. Paul, MN-based 3M Co., parent company of Top 40 supplier 3M/Promotional Markets (asi/91240), reported Q2 sales of $7.81 billion, a year-over-year increase of nearly 2%. The figure, though, was about $70 million short of what analysts had been predicting, sending the firm’s stock sharply lower. As is customary, the company did not break out revenue for promotional products.

Improved operating expenses and money from the sale of a business unit pushed earnings to $1.58 billion, an increase of 22% compared to the previous year. Four out of five 3M business groups reported sales increases over the period a year ago. 3M’s electronics and energy division saw the largest growth, at around 7.5%, despite waning demand for films to cover smartphone screens and related products. 3M’s largest business, its industrial segment, increased sales by 2.5% to $2.7 billion.

Geographically, across all divisions, 3M had the strongest gains in Asia, followed by Latin America/Canada, and then the U.S. 3M said its revenue decreased by 3.6% in Europe, the Middle East and Africa.

“Our team posted another quarter of strong and broad-based organic growth,” 3M CEO Inge Thulin said, in a statement. “We also continued to deliver premium margins and returns while accelerating investments to support growth and strengthen the portfolio – which is part of our playbook to build an even stronger and more competitive 3M.”

Going forward, 3M now expects local-currency sales to be up 3%-5% for the full year, an improvement from earlier projections, while the firm anticipates earnings to reach $8.80 to $9.05 a share. 3M/Promotional Markets is ranked 18th on Counselor’s list of top 40 suppliers, with estimated 2016 North American promotional product sales of $96 million.