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Diversified manufacturer 3M (NYSE: MMM), St. Paul, MN, reported first-quarter sales of $7.5 billion, up 2.4 percent year-on-year. First-quarter organic local-currency sales grew 1.8 percent, acquisitions added 1.5 percent to sales and foreign exchange impacts reduced sales by 0.9 percent.
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On a geographic basis, sales grew 8.4 percent in Latin America/Canada, 6.3 percent in the U.S. and 0.1 percent in Europe. Sales declined 1.9 percent in Asia Pacific.
First-quarter profit rose 4 percent year-on-year to over $1.1 billion.
Industrial and Transportation
Sales of $2.7 billion were up 8.6 percent, including 3.1 percent from acquisitions. Foreign currency translation reduced sales by 1.2 percent. Broad-based sales growth led by double-digit increases in aerospace, abrasives and automotive OEM. Sales rose in all geographic regions, including a double-digit increase in the U.S. Operating income rose 16.2 percent to $600 million; operating income margin of 22.5 percent.
Sales of $1.3 billion were up 2 percent; foreign exchange impacts reduced sales by 1.1 percent. Sales increased in most businesses, led by a double-digit increase in health information systems; sales declined year-on-year in the drug delivery business.
Positive sales growth was in Asia Pacific, Latin America/Canada and the U.S.; European sales declined year-on-year. Operating income increased 9 percent to $402 million; operating income margin of 31.4 percent.
Consumer and Office
Sales of $1 billion, up 4.3 percent, including 3 percent from the recent acquisition of GPI. Foreign currency translation reduced sales by 0.8 percent. Double-digit sales increase in DIY, driven by a combination of acquired and organic growth.
European sales grew double-digits (driven by GPI); U.S. declined slightly year-on-year. Operating income rose 8.8 percent to $234 million; operating income margin of 22.4 percent.
Safety, Security and Protection Services
Sales of $1 billion were up 5.5 percent; foreign currency translation reduced sales by 1.3 percent. Strongest sales growth was in the roofing granules and personal safety businesses; sales declined year-on-year in security systems.
Sales rose double-digits in Latin America/Canada and the U.S.; European sales declined year-on-year. Operating income rose 16.3 percent to $231 million; operating margin of 23.6 percent.
Display and Graphics
Sales of $832 million were down 11.8 percent; foreign exchange impacts reduced sales by 0.4 percent. Optical systems’ sales declined 28 percent, impacted by lower film volumes for LCD TVs. Sales increased in both architectural markets and commercial graphics, and were down slightly in traffic safety systems.
Sales declined in Europe due to soft economy, and in Asia Pacific, largely electronics related. Operating income declined 29.2 percent to $163 million; operating margin of 19.6 percent.
Electro and Communications
Sales of $808 million were down 3.4 percent; foreign currency translation reduced sales by 0.3 percent. Consumer electronics-related sales declined year-on-year due to lower customer production levels.
Sales in Asia Pacific and Europe declined year-on-year, partially offset by increases in the U.S. and Latin America/Canada. Operating income of $168 million, down 5.7 percent; operating margin of 20.8 percent.