Diversified manufacturer 3M (NYSE: MMM), St. Paul, MN, reported first-quarter sales of $7.6 billion, a year-over-year decrease of 3.2 percent. Organic local-currency sales grew 3.3 percent, while foreign currency translation reduced sales by 6.5 percent.
Profit of $1.2 billion was down slightly from the same period a year ago.
On a geographic basis, organic local-currency sales grew 5.6 percent in Asia Pacific, 3.6 percent in Latin America/Canada, 3.1 percent in the U.S. and 0.3 percent in EMEA (Europe, Middle East and Africa).
“We are executing well against a more challenging economic backdrop in early 2015,” said Inge G. Thulin, 3M’s president and CEO. “The stronger U.S. dollar negatively impacted sales and earnings in the first quarter, and global economic growth was mixed. Despite these near-term challenges, we grew organically in all business groups and all geographic areas, and expanded operating margins by nearly a full percentage point.”
In the industrial segment, sales were $2.7 billion, down 4.3 percent from first quarter 2014. Organic local-currency sales increased 2.7 percent. Sales growth was led by aerospace and commercial transportation, automotive OEM and 3M Purification. Geographically, sales increased in Latin America/Canada, the U.S. and Asia Pacific; EMEA sales were flat.
Industrial segment operating income was $598 million, down 3.3 percent year-on-year.
In the electronics and energy segment, sales were $1.3 billion, a year-over-year increase of 0.8 percent. Organic local-currency sales increased 5.8 percent. On an organic local-currency basis, electronics-related sales increased 12 percent, and energy-related sales declined 3 percent, with electrical markets flat while telecom and renewable energy both declined. Sales grew in all major geographies led by Asia Pacific, EMEA and Latin America/Canada.
Electronics and energy segment operating income was $283 million, up 24.3 percent year-on-year.
In the safety and graphics segment, sales were $1.4 billion, down 3.6 percent year-over-year. Organic local-currency sales increased 4.1 percent. Sales grew across all major geographies led by Asia Pacific, Latin America/Canada and the U.S. Operating income was $335 million, an increase of 5.3 percent year-on-year.
In the health care segment, sales were $1.3 billion, down 3.3 percent. Organic local-currency sales increased 3 percent. Sales increased in Asia Pacific, Latin America/Canada and the U.S.; EMEA sales declined year-on-year. Operating income was $408 million, down 4.3 percent year-on-year.
Consumer segment sales were $1 billion, down 2.9 percent. Organic local-currency sales increased 2.1 percent. Sales increased in the U.S. and Asia Pacific; EMEA and Latin America/Canada sales declined slightly year-on-year. Operating income was $240 million, up 5.2 percent year-on-year.