Operating income was $2.2 billion and operating income margin for the quarter was 28.0%, up 3.6% year-on-year. This result includes a net benefit of $273 million, which is comprised of divestiture gains of $451 million (net of lost operating income), partially offset by $178 million of incremental investments in accelerated growth programs, productivity and portfolio actions.
Second-quarter net income was $1.6 billion, up 22.6%. The company’s operating cash flow was $1.6 billion, contributing to conversion of 85% of net income to free cash flow.
Total sales grew 7.5% in Electronics and Energy, 2.5% in Industrial, 1.8% in Health Care, and 0.5% in Consumer; total sales declined 0.9% in Safety and Graphics.
“Our team posted another quarter of strong and broad-based organic growth, which included positive growth across all five of our business groups,” said Inge G. Thulin, 3M chairman, president and CEO.
Coming off a strong first half of the year, 3M updated its guidance for 2017. The company now forecasts organic local-currency sales growth to be 3% to 5%, up from previous guidance of 2% to 5%. 3M expects earnings in the range of $8.80 to $9.05 per share – up 8% to 11% year-on-year – versus a prior expectation of $8.70 to $9.05.