3M Reports An 11-Percent Drop In April Sales Year Over Year
3M, which operates in the promotional products industry as supplier 3M Promotional Markets Department (PPAI 113638, S11), has reported April 2020 sales of $2.3 billion, a 11-percent drop compared the prior-year period. It withdrew its full-year 2020 outlook on April 28 due to the uncertain impact of the COVID-19 pandemic and has committed to providing monthly updates until it can better forecast future performance.
The St. Paul, Minnesota, company says that organic local-currency sales—which includes organic volume impacts and selling price changes, declined 12 percent, while acquisitions, net of divestitures, increased sales by three percent. Foreign currency translation sales fell two percent year-on-year.
“April sales results were largely in line with month-to-date trends we discussed during our first quarter earnings call,” says Mike Roman, 3M chairman and CEO. “We remain focused on ensuring the health and safety of our employees, delivering for our customers and increasing production of much-needed respirators as we fight this pandemic from all angles.”
Total sales grew five percent in health care, with declines of five percent in consumer, 11 percent in safety and industrial, and 20 percent in transportation and electronics. Organic local-currency sales declined three percent in consumer, seven percent in safety and industrial, 10 percent in health care, and 18 percent in transportation and electronics.
The company says that the COVID-19 pandemic continues to impact its businesses in several ways. 3M has continued to experience strong end-market demand specifically in personal safety, electronics (semiconductor and data center), general cleaning, food safety and biopharma filtration. At the same time, several other end markets have experienced significant weakness due to factors including social distancing and shelter-in-place mandates. These end markets include oral care, automotive original equipment manufacturer (OEM) and aftermarket, general industrial, commercial solutions, and stationery and office.
On a geographic basis, total sales declined five percent in Asia Pacific, 12 percent in EMEA (Europe, Middle East and Africa), and 13 percent in the Americas. Organic local-currency sales declined five percent in Asia Pacific (including a seven-percent increase in China and a five-percent decrease in Japan), EMEA declined 12 percent and the Americas declined 17 percent, which includes a 15-percent decrease in the U.S.