3M sales flat but earnings grew in 3Q
3M reported third-quarter earnings of $2.15 per share, an increase of 4.9 percent versus the third quarter of 2015.
Sales were $7.7 billion, flat year-on-year in dollar terms. Organic local-currency sales decreased 0.8 percent while acquisitions, net of divestitures, added 0.3 percent to sales. Foreign currency translation increased sales by 0.5 percent year-on-year.
Organic local-currency sales growth was 2.9 percent in Consumer, 2.0 percent in Safety and Graphics, 1.5 percent in Health Care, with declines of 1.1 percent in Industrial and 8.1 percent in Electronics and Energy.
“Our third quarter was marked by increased earnings, robust cash flow and a strong, broad-based margin performance – with each of our business groups posting margins of 22 percent or greater,” said Inge G. Thulin, 3M’s chairman, president and chief executive officer. “At the same time, we continued to execute on Business Transformation while taking several actions to strengthen and focus our portfolio. We were also pleased to celebrate our company’s 100th consecutive year of paying dividends, which we’ve increased for each of the last 58 years.”
In the Industrial segment, sales of $2.6 billion were up 1.0 percent in U.S. dollars.
Organic local-currency sales decreased 1.1 percent; acquisitions, net of divestitures, increased sales by 1.4 percent; foreign currency translation increased sales by 0.7 percent. Sales growth in automotive OEM and automotive aftermarket was offset by declines across the rest of the portfolio.
In the Safety and Graphics segment, sales of $1.4 billion reflected a 2.2 percent incease.
Organic local-currency sales increased 2.0 percent; acquisitions, net of divestitures, decreased sales by 0.1 percent; foreign currency translation increased sales by 0.3 percent. Sales growth was led by roofing granules and commercial solutions.