The 2020 Mid-Year Economic Update_long

3M 1Q Sales Up 3.7%

Industrial segment sales up 0.5 percent for the diversified manufacturer.

Diversified manufacturer 3M (NYSE: MMM), St. Paul, MN, reported first-quarter sales of $7.68 billion, a year-over-year increase of 3.7 percent. Organic local-currency sales grew 4.6 percent, while foreign currency translation reduced sales by 0.5 percent.

Profit of $1.3 billion was up 3.7 from the same period a year ago.

On a geographic basis, organic local-currency sales grew 10.1 percent in Asia Pacific, 2.3 percent in Latin America/Canada, 1.4 percent in the U.S. and 4 percent in EMEA (Europe, Middle East and Africa).

“The 3M team delivered a strong start to 2017, marked by organic sales growth of 5 percent – with positive growth in all geographic areas,” said Inge G. Thulin, 3M’s chairman, president and CEO. “At the same time, we increased investments across the enterprise to further accelerate growth and improve productivity, while increasing our dividend for the 59th consecutive year. In the first quarter we also announced the acquisition of Scott Safety, which will bolster 3M’s already strong position in the personal safety market.”

In the industrial segment, sales were $2.7 billion, up 4.2 percent from first quarter 2016. Organic local-currency sales increased 5.7 percent. Sales growth was led by automotive and aerospace solutions, advanced materials, abrasives, industrial adhesives and tapes and automotive aftermarket. Geographically, sales increased in Asia Pacific, the U.S., and EMEA; Latin America/Canada was flat.

Industrial segment operating income was $625 million, up 0.5 percent year-on-year. In the electronics and energy segment, sales were $1.2 billion, a year-over-year increase of 11.1 percent. Organic local-currency sales increased 11.5 percent. Electronics-related sales were up 18 percent with growth in both display materials and systems, and electronics materials solutions; energy-related sales were up 1 percent with growth in electrical markets; telecom was flat. Sales grew in Asia Pacific, EMEA and the U.S.; Latin America/Canada was flat.

Electronics and energy segment operating income was $225 million, up 15.4 percent year-over-year.

In the safety and graphics segment, sales were $1.5 billion, up 3.4 percent year-over-year. Organic local-currency sales increased 4.8 percent. Sales grew in all areas, led by EMEA, Asia Pacific and the U.S. Operating income was $399 million, an increase of 11.1 percent year-on-year.

In the health care segment, sales were $1.4 billion, up 2.3 percent. Organic local-currency sales increased 3.1 percent. Sales grew in all areas, led by Latin America/Canada, Asia Pacific and the U.S.. Operating income was $434 million, down 5 percent year-on-year.

Consumer segment sales were $1 billion, down 0.7 percent. Organic local-currency sales decreased 1.2 percent. Sales grew in Asia Pacific and Latin America/Canada, were flat in EMEA, and declined in the U.S.  Operating income was $222 million, down 6.8 percent year-on-year.


About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.


articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.