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Diversified manufacturer 3M (NYSE: MMM), St. Paul, MN, reported first-quarter sales of $7.68 billion, a year-over-year increase of 3.7 percent. Organic local-currency sales grew 4.6 percent, while foreign currency translation reduced sales by 0.5 percent.
Profit of $1.3 billion was up 3.7 from the same period a year ago.
On a geographic basis, organic local-currency sales grew 10.1 percent in Asia Pacific, 2.3 percent in Latin America/Canada, 1.4 percent in the U.S. and 4 percent in EMEA (Europe, Middle East and Africa).
“The 3M team delivered a strong start to 2017, marked by organic sales growth of 5 percent – with positive growth in all geographic areas,” said Inge G. Thulin, 3M’s chairman, president and CEO. “At the same time, we increased investments across the enterprise to further accelerate growth and improve productivity, while increasing our dividend for the 59th consecutive year. In the first quarter we also announced the acquisition of Scott Safety, which will bolster 3M’s already strong position in the personal safety market.”
In the industrial segment, sales were $2.7 billion, up 4.2 percent from first quarter 2016. Organic local-currency sales increased 5.7 percent. Sales growth was led by automotive and aerospace solutions, advanced materials, abrasives, industrial adhesives and tapes and automotive aftermarket. Geographically, sales increased in Asia Pacific, the U.S., and EMEA; Latin America/Canada was flat.
Industrial segment operating income was $625 million, up 0.5 percent year-on-year. In the electronics and energy segment, sales were $1.2 billion, a year-over-year increase of 11.1 percent. Organic local-currency sales increased 11.5 percent. Electronics-related sales were up 18 percent with growth in both display materials and systems, and electronics materials solutions; energy-related sales were up 1 percent with growth in electrical markets; telecom was flat. Sales grew in Asia Pacific, EMEA and the U.S.; Latin America/Canada was flat.
Electronics and energy segment operating income was $225 million, up 15.4 percent year-over-year.
In the safety and graphics segment, sales were $1.5 billion, up 3.4 percent year-over-year. Organic local-currency sales increased 4.8 percent. Sales grew in all areas, led by EMEA, Asia Pacific and the U.S. Operating income was $399 million, an increase of 11.1 percent year-on-year.
In the health care segment, sales were $1.4 billion, up 2.3 percent. Organic local-currency sales increased 3.1 percent. Sales grew in all areas, led by Latin America/Canada, Asia Pacific and the U.S.. Operating income was $434 million, down 5 percent year-on-year.
Consumer segment sales were $1 billion, down 0.7 percent. Organic local-currency sales decreased 1.2 percent. Sales grew in Asia Pacific and Latin America/Canada, were flat in EMEA, and declined in the U.S. Operating income was $222 million, down 6.8 percent year-on-year.