3M announced record sales growth for the third quarter of 2017

3M reported an increase in sales in the third quarter, it amounted to 8.2 billion dollars, which is 6% higher than the previous year. Profit per share – 2.33 dollar, which is 8.4% more than in the previous year.

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Main indicators of the third quarter:

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• Sales amounted to 8.2 billion dollars. USA, which is 6% higher than the third quarter of 2016, sales in local currencies increased by 6.6%, sales growth was recorded in all five business groups and in all geographic regions
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• earnings per share reached $ 2,33. United States, which was 8.4% higher than last year. Operating profit margin was 25%
• 1.1 billion dollars. USA paid to the shareholders as dividends and gross share repurchase

According to new forecasts 3M in 2017, profit per share should be between 9,00-9,10 USD previously, it was expected that the profit will be from 8,8 to 9.05 USD. based on the action

 

3M reports that the results of the third quarter profit amounted to 2.33 dollars. per share, an increase of 8.4% compared to the same period in 2016. Net sales amounted to 8.2 billion dollars. Sales growth in local currencies amounted to 6.6%, while the sale of assets reduced sales by 1.2%. Changes in exchange rates resulted in a sales volume increase of 0.6% compared to the same period last year.

 

Profit was $ 2 billion., and our operating margin for the quarter reached 25%, which is 0.3 percentage points higher compared to the same period last year. This result includes additional investments in the amount of 48 million dollars. The United States aimed at programs to increase growth, increase productivity and optimize the product portfolio. In the third quarter, net profit amounted to 1.4 billion dollars. USA, which is 7.5% more compared to the same period last year.

 

Operating cash flow amounted to 1.8 billion dollars, which led to the transfer of 100% of net income in free cash flow.

 

For the quarter, 3M paid its shareholders $ 701 million. as cash dividends and repurchased own shares in the amount of 380 million dollars.

 

Total sales increased 13.1% in the business group, electronics and power engineering; 7,7% Health 6,2% in Industry, 2.2 per cent Consumer goods and 1.9% - Safety and graphics. Natural sales growth in local currencies is fixed by 13.2% in the business group, electronics and power engineering, and 6.9% Health care, 6.1%, The Industry, 6,0% - Safety and graphics and 1.9% - Consumer goods.

geographic distribution of total sales in local currencies increased by 10.8% in the Asia-Pacific region, 7.4 percent in Europe, Africa and the middle East, up 5.6% in Latin America and Canada, and 2.0% in the US. Sales in local currency grew by 12.8% in the Asia-Pacific region, 5.3 percent in Latin America and Canada, 4% - percent in Europe, Africa and the middle East and 3.6% in the United States.

 

“after Successfully completing the first half, our team showed even greater performance in the third quarter marked by increased earnings per share by 8% and sales growth of 7% in all five business groups and geographical regions», - said Inge Thulin (Inge G. Thulin), Chairman of the Board of Directors, President and chief Executive officer of 3M company. “At the same time, we increased the income threshold by 25%, invested additional funds to accelerate growth in the main areas, while paying a significant amount of cash to shareholders”.

 

due To the high indicators of the first nine months of the year, 3M has updated its projections for 2017. The company expects sales growth in local currency of 4-5% previously expected growth of 3–5%. According to the updated forecasts of the company 3M by 2017, profits in the range of 9.00 to 9.10 USD. per share will increase by 10-12% compared with the previous year. In the first quarter of 2017, it was expected that profit will be from of 8.80 to 9.05 dollars.

 

Third quarter: statistics on business groups of the company

 

Industry

sales of $ 2.8 billion dollars, which is 6.2% higher compared with the same period last year USD. Sales in local currencies increased by 6.1%. In the translation for foreign currency, total sales increased by 0.7% and the realisation of assets through their sales reduced sales by 0.6%.

Sales in local currencies:

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• sales Growth was seen in all business areas, thanks to materials for the industry of polymers and energy, industrial tapes and adhesives, as well as filtration and separation.
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• sales Growth was seen in all regions, the highest recorded in Asia-Pacific, Latin America and Canada.

Operating profit was 614 million. which is 3.1% higher on the comparison with the similar period of the last year. Operating profit margin was 22.2%.

 

Security and graphics

sales were $ 1.5 billion dollars, which is 1.9% higher compared with the same period last year USD. Sales in local currencies increased by 6.0%, in terms of foreign currency, total sales increased by 0.8%. Disposals reduced sales by 4.9%.

Sales in local currencies:

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• sales Growth occurred primarily due to the sale of personal protective equipment, roofing materials and products for safety. Indicators of the Department commercial graphics has decreased.
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• sales Growth was seen in all regions, the biggest increase was in the Asia-Pacific region, Europe, Africa and the middle East.

Operating profit was 410 million dollars, this is 10.5% more than in comparison with the similar period of the last year. Operating profit margin was 26.8%.

 

Health

sales were $ 1.5 billion dollars, which is 7.7% higher compared with the same period last year USD. Sales in local currencies increased by 6.9%, in terms of foreign currency, total sales increased by 0.8%.

Sales in local currencies:

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• sales Growth was provided in the areas of drug delivery solutions for food safety, medical consumables and systems of care for the oral cavity.
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• sales Growth was observed across all geographic regions, the biggest increase in Asia-Pacific, Latin America, Canada and the United States.

Operating profit amounted to 417 million. that is 9.3% higher than the same period last year. Operating profit margin of 31.9%.

 

electronics and power engineering

sales were $ 1.4 billion dollars, 13.1% higher compared with the same period last year United States dollars.

Sales in local currencies increased by 13.2%, in terms of foreign currency, sales were unchanged compared with the same period last year. Disposal of assets by sale decreased sales by 0.1%.

Sales in local currencies:

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• net sales in electronics increased by 18%, while the growth of sales was observed in respect of materials for the electronics industry, displays and systems. Sales of energy solutions grew 2%, while increased in relation to electrical materials and decreased for telecommunication materials.
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• sales Growth was in Asia-Pacific, Latin America, Canada, Europe, Africa and the middle East. In the U.S., the growth has declined.

Operating profit was 394 million dollars, what is 29.9% higher in comparison with the similar period of the last year. Operating profit margin amounted to 27.9%.

 

Consumer goods

sales were $ 1.2 billion dollars, which is 2.2% higher compared with the same period last year United States dollars.

Sales in local currencies grew by 1.9%, in terms of foreign currency sales increased by 0.3%.

Sales in local currencies:

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• Increase sales of consumer health goods, home goods, construction and home improvement. The decrease in the departments of office and stationery products.
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• sales Growth was in Asia-Pacific, Latin America, Canada and the United States. At the same time, the decline in sales was recorded in Europe, Africa and the middle East.

Operating profit was 307 million dollars, which is 3.2% lower than the same period last year. Operating profit margin was 24.8%.