3M Reports Fourth-Quarter And 2018 Financials
3M has released its fourth-quarter and full-year 2018 financial results, reporting sales of $7.9 billion in the quarter and $32.8 billion for the full year. The company’s fourth-quarter result represents a 0.6 percent decline year-over-year, but its annual sales were up 3.5 percent. The company, located in St. Paul, Minnesota, operates in the promotional products industry as supplier 3M Promotional Markets (PPAI 113638).
“3M executed well in the fourth quarter, with results that were in line with our expectations,” says Mike Roman, CEO of 3M. “We delivered organic growth of 3 percent—which included growth across all business groups and geographic areas—along with strong cash flow and earnings. The fourth quarter capped an important year for 3M, as we posted good results and continued to take actions to strengthen our company for the future.
“Going forward, our team remains focused on executing our four priorities—portfolio, transformation, innovation, and people and culture—which are keys to growth and value creation. We are positioned for a successful 2019 and are focused on delivering for our customers and shareholders.”
For the fourth quarter, the company reported organic local-currency sales growth of 3 percent. Divestitures decreased sales by 1.3 percent, while foreign currency translation decreased sales by 2.3 percent year-on-year. Total sales grew 2.4 percent in Health Care, 0.3 percent in Safety and Graphics and 0.1 percent in Consumer. Total sales declined 0.3 percent in Industrial and 4.5 percent in Electronics and Energy. Organic local-currency sales increased 4.8 percent in Health Care, 4.1 percent in Electronics and Energy, 3.3 percent in Safety and Graphics, 2.5 percent in Industrial and 1.9 percent in Consumer.
For the full year, organic local-currency sales increased 3.2 percent. The company’s combination of acquisitions and divestitures increased sales 0.1 percent. Foreign currency translation increased sales 0.2 percent. The full-year operating income margins were 22 percent, while adjusted operating margins were 24.7 percent, up 40 basis points versus 2017.