The 2020 Mid-Year Economic Update_long

3M Sales Down 5.2% in 3Q

Industrial sales for the diversified manufacturer decreased 7.1 percent.

St. Paul, MN-based 3M (NYSE: MMM) reported sales for the third quarter of $7.7 billion, down 5.2 percent year-over-year. Organic local-currency sales grew 1.2 percent. Profit decreased 0.5 percent to $1.3 billion.

On a geographic basis, organic local-currency sales grew 2.3 percent in Latin America/Canada, 1.5 percent in the U.S., 1.5 percent in EMEA (Europe, Middle Eastand Africa) and 0.4 percent in Asia Pacific.

For the nine months ended Sept. 30, sales were $23 billion, down 4.7 percent year-over-year. Profit grew 0.5 percent to $3.8 billion.

Industrial sales were $2.6 billion in the third quarter, down 7.1 percent in U.S. dollars. Organic local-currency sales increased 0.2 percent, acquisitions increased sales 0.7 percent and foreign currency translation reduced sales by 8 percent. Sales growth was led by automotive OEM, 3M purification, abrasives, and industrial adhesives and tapes; advanced materials declined. Operating income decreased 5.8 percent to $580 million.

Electronics and energy sales were $1.4 billion, down 8.1 percent in U.S. dollars. Organic local-currency sales declined 2.8 percent, divestitures reduced sales by 0.7 percent and foreign currency translation reduced sales by 4.6 percent. Electronics-related sales declined 3 percent and energy-related sales declined 2 percent. Operating income was up 1.4 percent year-over-year to $342 million.

Safety and graphics sales were $1.4 billion in the third quarter, down 2.2 percent in U.S. dollars. Organic local-currency sales increased 2.9 percent, acquisitions increased sales 4.2 percent and foreign currency translation reduced sales by 9.3 percent. Sales grew in roofing granules, commercial solutions and personal safety; traffic safety and security declined. Operating income decreased 4.8 percent to $324 million.

Health care sales were $1.3 billion, down 3.2 percent in U.S. dollars. Organic local-currency sales increased 3.7 percent, acquisitions increased sales by 0.9 percent and foreign currency translation reduced sales by 7.8 percent. Sales grew in health information systems, food safety, critical and chronic care, oral care and infection prevention; drug delivery systems declined year-on-year. Operating income was up slightly to $432 million.

Consumer sales were $1.2 billion in the third quarter, down 1.2 percent in U.S. dollars. Organic local-currency sales increased 5.0 percent and foreign currency translation reduced sales by 6.2 percent. Sales growth was led by stationery and office supplies, home improvement and home care. Operating income was up 7.5 percent year-over-year to $293 million.

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