The 3M company has announced sales growth in the second quarter of 2018

3M reported an increase in sales in the second quarter of 2018: it amounted to 8.4 billion U.S. dollars. Profit per share — 3.07 US dollar.

the Main figures of the second quarter:

the
    the
  • sales of $ 8.4 billion. USA, which is 7.4% more than in the second quarter of 2017
  • Sales in local currencies grew by 5.6%, growth in all business groups and all regions. the

  • Net profit amounted to 3,07 USD. The United States, based on the action against of 2.58$. USA in 2017 increased by 19% compared to the same period last year:
  • the
  • net income for KW. 2018 includes profit from the sale of assets in the amount of 0.48 USD. The U.S. share excluding restructuring costs;
  • the
  • net profit for the second quarter of 2017 included the profit from the sale of assets in the amount of 0.33 USD. U.S. per share, partially offsetting investments in a portfolio of products and production.
  • the
  • 2.4 billion dollars. USA returned to shareholders via dividends and gross share buybacks.
  • the
  • Updated forecasts earnings per share in 2018, reflecting the impact on annual performance of recently completed transactions for the sale of assets of the Telecom business, which was not considered in the previous projections.

3M has completed the second successful quarter, showing organic sales growth of 6% in all business groups and regions said Mike Roman, CEO of 3M company. Our team has achieved record sales and double-digit increase in earnings per share, while maintaining the level of investment in the business and returning invested funds to shareholders.

In the future we will continue to give priority to the product portfolio of 3M, to strengthen the innovation base and accelerate the transformation of business, and also contribute to the development of our employees. The 3M strategy is working and we are only at the beginning. We have a great position in order to become more meaningful for our customers and shareholders in 2018 and in the future”.

In the second quarter of 2018 sales grew by 7.4% and amounted to 8.4 billion dollars. USA. Sales in local currency grew by 5.6%, and acquisitions, excluding disposal of assets by sale, increased sales by 0.8%. Fluctuations in currency exchange rates increased total sales by 1.0%.

Total sales in the business group of the 3M company were as follows: 15.8% in group Safety and graphics, 6.8 percent  Industry, And 4.9% - Health care; and 4.6%  Consumer products; 3,6% – electronics and power engineering. In local currencies the sales growth was noted in the following areas: Safety and graphics (8.5 percent), Industry (5.7 percent), electronics and power engineering (5,2%), Consumer goods (4.3%) and Health care (3.8 percent).

the territorial analysis of the markets you can conclude that the increase in total sales by 9.5% in the region Europe, middle East and Africa, 7.9% in the Asia-Pacific region by 7.1% in U.S. and 3.1% in Latin America and Canada. In the calculation in the national currency sales growth in Latin America and in Canada was 6.0% in Europe, middle East and Africa – of 5.8% in the U.S.  5.6 percent in the Asia-Pacific region  5,5%.

In the second quarter of 2018, net profit amounted to 3,07 USD. U.S. per share, showing an increase of 19% versus second quarter of last year. In the reporting period, the company received profit in the amount of 0,48$. The US per share in connection with the sale of assets in the telecommunications business, net of restructuring costs. In the second quarter of 2017 year net profit amounted to 2.58 USD. U.S. per share, which included a profit of $ 0.33 USD. USA to share the resulting profits from the sale of business assets, offset in part by investments in product portfolio and production.

During the reporting period, the company's operating profit amounted to 2.4 billion dollars. The United States, and operating margin – of 28.6%. Operating profit includes an income of 389 million dollars. USA from the sale of the assets of the telecommunications business, less restructuring charges.

For the quarter, 3M paid its shareholders $ 802 million. USA as cash dividends and repurchased own shares in the amount of 1.6 billion dollars. USA.

the Company has updated the forecast for 2018 in terms "net profit" to reflect the impact on annual sales of assets in the telecommunications business and related operations. Currently, 3M expects its net profit per share should be of 9.08 to 9.38 USD. USA. Previously the forecast was from 8.68 to $ 9.03. USA. If we exclude the impact of sale assets of the telecommunications business, the consequences of a legal settlement and payments by the employment Act and the tax cuts (TCJA) in the first quarter, 3M expects earnings for the whole of 2018 will be from of 10.20 to 10.45 USD. USA per share. To the adjustment of the forecast profit of 10.20 to 10.55 USD. USA per share. The updated forecast reflects the effect of the expropriated income from the sale of the Telecom business which has not been considered in the previous forecast.

the Company did not change its forecast that sales growth in local currency in annual terms will amount to 3-4%, and the conversion of available funds will be in the range of 90-100%, as indicated in part “Additional financial information unrelated to the measurement of net profit" (Supplemental Financial Information Non-GAAP Measures).

Author Наталья Стрельникова (3M Russia),
26 July 2018.

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