The 2020 Mid-Year Economic Update_long

3M Sales Down 0.5% in 2016

Industrial sales up 3 percent in the fourth quarter.

3M (NYSE: MMM), St. Paul, MN, reported sales for 2016 of $30.1 billion, a year-over-year decrease of 0.5 percent. Organic local-currency sales declined .01 percent. Profit for the diversified manufacturer grew 4.5 percent to $5 billion.

For the fourth quarter, sales grew 0.4 percent to $7.3 billion. Organic local-currency sales grew 1.6 percent. Profit increased 11.3 percent to $1.2 billion.

"Throughout the year we executed the 3M playbook and delivered a strong operational performance, and built for the future through our three key levers: Portfolio Management, Investing in Innovation and Business Transformation," said Inge G. Thulin, president and CEO. "We are well positioned to build on this momentum and deliver another strong performance in 2017."

On a geographic basis, fourth quarter organic local-currency sales growth was 4.1 percent in Latin America/Canada, 2.4 percent in Asia Pacific and 1.2 percent in the U.S., with a decline of 2.4 percent in EMEA (Europe, Middle East and Africa).

Industrial sales in the fourth quarter increased 3 percent to $2.5 billion in U.S. dollars. Organic local-currency sales grew 4.6 percent. Operating income was $553 million, an increase of 16.8 percent year-on-year.

Safety and graphics sales fell 0.6 percent to $1.3 billion. Organic local-currency sales increased 2.2 percent. Operating income was $270 million, a decrease of 4 percent year-on-year.

Health care sales of $1.4 billion were down 0.1 percent in U.S. dollars during the quarter. Organic local-currency sales increased 1.3 percent. Operating income was $410 million, an increase of 7.3 percent year-on-year.

Electronics and energy sales of $1.2 billion were down 1 percent in U.S. dollars. Organic local-currency sales declined 0.6 percent. Operating income was $326 million, an increase of 61.3 percent year-on-year.

Consumer sales of $1.1 billion were down 0.7 percent in U.S. dollars. Organic local-currency sales decreased 0.7 percent. Operating income was $228 million, down 10.5 percent year-on-year.

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