The 2020 Mid-Year Economic Update_long

3M Sales Down 5.5% in 2Q

On an organic local-currency basis, sales increased 1.8 percent for the diversified manufacturer.

St. Paul, MN-based 3M (NYSE: MMM) reported second-quarter sales of $7.7 billion, down 5.5 percent over the same period a year ago. Organic local-currency sales grew 1.8 percent. Profit for the diversified manufacturer increased 2 percent to $1.3 billion.

On a geographic basis, organic local-currency sales grew 4.1 percent in the U.S., 0.8 percent in Latin America/Canada, 0.5 percent in Asia Pacific and 0.4 percent in EMEA (Europe, Middle East and Africa).

Industrial sales fell 6.4 percent to $2.6 billion. Organic local-currency sales increased 1.4 percent, led by 3M purification, aerospace and commercial transportation, and automotive OEM. Sales grew in the U.S. and Latin America/Canada; Asia Pacific was flat; EMEA sales declined slightly. Operating income fell 1.2 percent to $609 million.

Electronics and energy sales of $1.3 billion were down 7.9 percent year-over-year. Organic local-currency sales declined 3 percent. Sales grew in the U.S. and declined in EMEA, Asia Pacific and Latin America/Canada. Operating income was $277 million, a decline of 5.2 percent.

Safety and graphics sales of $1.4 billion were down 4.1 percent from second quarter 2014. Organic local-currency sales increased 4.9 percent, led by roofing granules, commercial solutions and personal safety.  Sales increased in Asia Pacific, the U.S. and EMEA; Latin America/Canada sales declined. Operating income was $364 million, an increase of 3.1 percent.

Health care sales of $1.4 billion fell 3.7 percent, while organic local-currency sales increased 3.4 percent. Organic local-currency sales growth was positive in food safety, health information systems, oral care, critical and chronic care, and infection prevention; drug delivery systems declined year-on-year. Sales grew in Asia Pacific, Latin America/Canada and the U.S., while EMEA was flat. Operating income was $440 million, an increase of 1.3 percent year-on-year.

Consumer sales of $1.1 billion were down 2.5 percent. Organic local-currency sales increased 3.4 percent. Sales grew in the U.S. and Asia Pacific; Latin America/Canada was flat; EMEA sales declined. Operating income was $259 million, up 7.4 percent year-on-year.

For the six months ended June 30, 3M reported sales of $15.3 billion, down 4 percent from the same period a year ago. Profit grew 1 percent to $2.5 billion.

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