3M Announces First-Quarter Sales of $7.5 Billion and Earnings of $1.59 per Share
9 hours 57 minutes ago - BusinessWire via Comtex
3M (NYSE: MMM) today reported record first-quarter sales of $7.5 billion, up 2.4 percent year-on-year. Earnings were $1.59 per share, an increase of 6.7 percent versus the first quarter of 2011, and operating margins for the quarter were 21.8 percent.
First-quarter organic local-currency sales grew 1.8 percent, acquisitions added 1.5 percent to sales and foreign exchange impacts reduced sales by 0.9 percent.
On a segment basis, sales increased 8.6 percent in Industrial and Transportation, 5.5 percent in Safety, Security and Protection Services, 4.3 percent in Consumer and Office and 2.0 percent in Health Care. Sales declined 3.4 percent in Electro and Communications and 11.8 percent in Display and Graphics, both impacted by the consumer electronics industry. On a geographic basis, sales grew 8.4 percent in Latin America/Canada, 6.3 percent in the United States and 0.1 percent in Europe. Sales declined 1.9 percent in Asia Pacific.
First-quarter net income rose 4.0 percent year-on-year to over $1.1 billion and earnings were $1.59 per share, an increase of 6.7 percent versus last year's first quarter. First-quarter 2012 results included a $0.04 per share charge related to a voluntary retirement program and other restructuring actions. Total-company operating income margins were 21.8 percent for the quarter, with five business segments above 20 percent, and free cash flow was $567 million.
"We are off to a very good start in 2012 with record first-quarter sales and strong earnings," said Inge G. Thulin, 3M president and chief executive officer. "3M employees everywhere did an outstanding job of managing in a challenging environment for growth."
Thulin continued, "Looking ahead, we will keep driving operational excellence to fund ongoing investments in innovation, commercialization and manufacturing. I am very confident in our ability to improve every aspect of our company and to keep delivering high-quality results into the future."
3M also updated its 2012 performance expectations. The company now expects full-year earnings to be in the range of $6.35 to $6.50 per share versus a previous expected range of $6.25 to $6.50 per share. 3M continues to expect organic sales volume growth of 2 to 5 percent, and operating income margins in the range of 21.0 to 22.5 percent for the year.
First-Quarter Business Segment Discussion
Industrial and Transportation
-- Sales of $2.7 billion, up 8.6 percent, including 3.1 percent from acquisitions. Foreign currency translation reduced sales by 1.2 percent.
-- Broad-based sales growth led by double-digit increases in aerospace, abrasives and automotive OEM.
-- Sales rose in all geographic regions, including a double-digit increase in the U.S.
-- Operating income rose 16.2 percent to $600 million; operating income margin of 22.5 percent.
Health Care
-- Sales of $1.3 billion, up 2.0 percent; foreign exchange impacts reduced sales by 1.1 percent.
-- Sales increased in most businesses, led by a double-digit increase in health information systems; sales declined year-on-year in the drug delivery business.
-- Positive sales growth in Asia Pacific, Latin America/Canada and the U.S.; European sales declined year-on-year.
-- Operating income increased 9.0 percent to $402 million; operating income margin of 31.4 percent.
9 hours 57 minutes ago - BusinessWire via Comtex
3M (NYSE: MMM) today reported record first-quarter sales of $7.5 billion, up 2.4 percent year-on-year. Earnings were $1.59 per share, an increase of 6.7 percent versus the first quarter of 2011, and operating margins for the quarter were 21.8 percent.
First-quarter organic local-currency sales grew 1.8 percent, acquisitions added 1.5 percent to sales and foreign exchange impacts reduced sales by 0.9 percent.
On a segment basis, sales increased 8.6 percent in Industrial and Transportation, 5.5 percent in Safety, Security and Protection Services, 4.3 percent in Consumer and Office and 2.0 percent in Health Care. Sales declined 3.4 percent in Electro and Communications and 11.8 percent in Display and Graphics, both impacted by the consumer electronics industry. On a geographic basis, sales grew 8.4 percent in Latin America/Canada, 6.3 percent in the United States and 0.1 percent in Europe. Sales declined 1.9 percent in Asia Pacific.
First-quarter net income rose 4.0 percent year-on-year to over $1.1 billion and earnings were $1.59 per share, an increase of 6.7 percent versus last year's first quarter. First-quarter 2012 results included a $0.04 per share charge related to a voluntary retirement program and other restructuring actions. Total-company operating income margins were 21.8 percent for the quarter, with five business segments above 20 percent, and free cash flow was $567 million.
"We are off to a very good start in 2012 with record first-quarter sales and strong earnings," said Inge G. Thulin, 3M president and chief executive officer. "3M employees everywhere did an outstanding job of managing in a challenging environment for growth."
Thulin continued, "Looking ahead, we will keep driving operational excellence to fund ongoing investments in innovation, commercialization and manufacturing. I am very confident in our ability to improve every aspect of our company and to keep delivering high-quality results into the future."
3M also updated its 2012 performance expectations. The company now expects full-year earnings to be in the range of $6.35 to $6.50 per share versus a previous expected range of $6.25 to $6.50 per share. 3M continues to expect organic sales volume growth of 2 to 5 percent, and operating income margins in the range of 21.0 to 22.5 percent for the year.
First-Quarter Business Segment Discussion
Industrial and Transportation
-- Sales of $2.7 billion, up 8.6 percent, including 3.1 percent from acquisitions. Foreign currency translation reduced sales by 1.2 percent.
-- Broad-based sales growth led by double-digit increases in aerospace, abrasives and automotive OEM.
-- Sales rose in all geographic regions, including a double-digit increase in the U.S.
-- Operating income rose 16.2 percent to $600 million; operating income margin of 22.5 percent.
Health Care
-- Sales of $1.3 billion, up 2.0 percent; foreign exchange impacts reduced sales by 1.1 percent.
-- Sales increased in most businesses, led by a double-digit increase in health information systems; sales declined year-on-year in the drug delivery business.
-- Positive sales growth in Asia Pacific, Latin America/Canada and the U.S.; European sales declined year-on-year.
-- Operating income increased 9.0 percent to $402 million; operating income margin of 31.4 percent.
