10.23.15
3M reported third-quarter 2015 earnings of $2.05 per share, an increase of 3.5% versus the third quarter of 2014. Sales declined 5.2% year-on-year to $7.7 billion. Organic local-currency sales grew 1.2% and acquisitions, net of divestitures, added another 1.0%. Foreign currency translation reduced sales by 7.4% year-on-year.
Operating income was $1.9 billion and operating income margins for the quarter were 24.3%, up 0.9%age points year-on-year. Third-quarter net income was $1.3 billion and the company converted 101% of net income to free cash flow.
3M paid $635 million in cash dividends to shareholders and repurchased $1.5 billion of its own shares during the quarter.
Organic local-currency sales growth was 5.0% in Consumer, 3.7% in Health Care, 2.9% in Safety and Graphics and 0.2% in Industrial; Electronics and Energy declined 2.8%. On a geographic basis, organic local-currency sales grew 2.3% in Latin America/Canada, 1.5% in the U.S., 1.5% in EMEA (Europe, Middle East and Africa) and 0.4% in Asia Pacific.
“3M delivered a solid operational performance in a continued slow-growth environment, marked by strong earnings, organic growth in all geographic areas and expanded margins,” said Inge G. Thulin, 3M’s chairman, president and CEO. “We continue to take actions to strengthen our portfolio, increase our scientific edge through R&D and transform our business processes through a new global ERP system. We are building a stronger, more streamlined and more focused company that can compete and win for years to come.”
To further strengthen its competitiveness, 3M also announced a restructuring plan that will result in an expected reduction of 1,500 positions worldwide with estimated pre-tax savings of $130 million in 2016. Reductions will be primarily focused on structural overhead, largely in the U.S., and slower-growing markets with particular emphasis on EMEA and Latin America.
Operating income was $1.9 billion and operating income margins for the quarter were 24.3%, up 0.9%age points year-on-year. Third-quarter net income was $1.3 billion and the company converted 101% of net income to free cash flow.
3M paid $635 million in cash dividends to shareholders and repurchased $1.5 billion of its own shares during the quarter.
Organic local-currency sales growth was 5.0% in Consumer, 3.7% in Health Care, 2.9% in Safety and Graphics and 0.2% in Industrial; Electronics and Energy declined 2.8%. On a geographic basis, organic local-currency sales grew 2.3% in Latin America/Canada, 1.5% in the U.S., 1.5% in EMEA (Europe, Middle East and Africa) and 0.4% in Asia Pacific.
“3M delivered a solid operational performance in a continued slow-growth environment, marked by strong earnings, organic growth in all geographic areas and expanded margins,” said Inge G. Thulin, 3M’s chairman, president and CEO. “We continue to take actions to strengthen our portfolio, increase our scientific edge through R&D and transform our business processes through a new global ERP system. We are building a stronger, more streamlined and more focused company that can compete and win for years to come.”
To further strengthen its competitiveness, 3M also announced a restructuring plan that will result in an expected reduction of 1,500 positions worldwide with estimated pre-tax savings of $130 million in 2016. Reductions will be primarily focused on structural overhead, largely in the U.S., and slower-growing markets with particular emphasis on EMEA and Latin America.
