The 2020 Mid-Year Economic Update_long

3M Sales Up 2.8% in Third Quarter

Industrial sales for the diversified manufacturer increased 3 percent.

St. Paul, MN-based 3M (NYSE: MMM) reported sales for the third quarter of $8.1 billion, up 2.8 percent over the same period a year ago. Organic local-currency sales grew 3.9 percent. Profit increased 5 percent to $1.3 billion.

On a geographic basis, organic local-currency sales grew 6 percent in the U.S., 4.9 percent in Asia Pacific, 0.8 percent in EMEA (Europe, Middle East and Africa) and 0.4 percent in Latin America/Canada.

For the nine months ended Sept. 30, sales were $24.1 billion, up 3 percent year-over-year. Profit grew 6 percent to $3.6 billion.

“The 3M team once again delivered broad-based organic growth with operating margins exceeding 22 percent in all businesses said Inge G. Thulin, president and CEO.

Industrial sales were $2.8 billion in the third quarter, up 3 percent in U.S. dollars. Organic local-currency sales increased 4.2 percent and foreign currency translation reduced sales by 1.2 percent. Sales growth was led by aerospace and commercial transportation, 3M purification, automotive OEM, advanced materials, and industrial adhesives and tapes; sales declined in personal care. Operating income was $616 million, up 7.9 percent year-on-year.

Electronics and energy sales were $1.5 billion in the third quarter, up 3.5 percent in U.S. dollars. Organic local-currency sales increased 4.3 percent. Sales in electronics-related businesses rose 8 percent year-on-year; energy-related businesses declined 2 percent. Operating income was $338 million, up 12.5 percent year-on-year.

Safety and graphics sales were $1.4 billion in the third quarter, up 1.3 percent in U.S. dollars. Organic local-currency sales increased 3.1 percent. Sales growth was led by personal safety, and traffic safety and security; sales declined in roofing granules. Operating income was $340 million, an increase of 8.8 percent year-on-year.

Health care sales were $1.4 billion in the third quarter, up 4.7 percent in U.S. dollars. Organic local-currency sales increased 5.4 percent. Sales increased across the portfolio, led by double-digit growth in drug delivery systems and health information systems. Operating income was $432 million, an increase of 1.4 percent.

Consumer sales were $1.2 billion in the third quarter, up 2.1 percent in U.S. dollars. Organic local-currency sales increased 3.1 percent. Sales grew in DIY, consumer health care and home care; stationery and office supplies declined year-on-year. Operating income was $272 million, up 10.1 percent year-on-year.

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