3M Sales Slip In Third Quarter Financial Results
3M has released its third-quarter 2018 results, reporting sales of $8.2 billion—down 0.2 percent year-on-year—and a 10.7 percent increase in earnings per share. The company, headquartered in St. Paul, Minnesota, operates in the promotional products industry as supplier 3M Promotional Markets (PPAI 113638).
“In the third quarter, 3M delivered a double-digit increase in cash flow and earnings-per-share, along with strong margins despite slower growth,” says Mike Roman, 3M chief executive officer. “We also continued to deploy capital to invest in our future and return cash to our shareholders. Through nine months of the year, our global team posted organic growth of more than three percent, and we are positioned to deliver a solid 2018. Going forward, we remain focused on innovating for our customers and driving growth, while continuing to transform our enterprise.”
The company’s third quarter sales of $8.2 billion reflect organic local-currency sales up 1.3 percent while acquisitions, net of divestitures, increased sales by 0.2 percent. Foreign currency translation decreased sales by 1.7 percent year-on-year. Looking at the company’s business groups, total sales grew seven percent in Safety and Graphics; Industrial was flat; sales declined 2.8 percent in Health Care, 3.4 percent in Consumer and 4.8 percent in Electronics and Energy. Organic local-currency sales increased 2.3 percent in Electronics and Energy, 2.2 percent in Industrial, and 2.2 percent in Safety and Graphics; organic local-currency sales declined 1.1 percent in Health Care and two percent in Consumer.
Breaking down the results by geographic regions, 3M’s total sales grew 1.6 percent in Asia Pacific and 1.3 percent in the U.S.; total sales declined 3.9 percent in EMEA (Europe, Middle East and Africa) and 5.5 percent in Latin America/Canada. Organic local-currency sales increased 3.2 percent in Asia Pacific, 2.1 percent in Latin America/Canada, and 0.5 percent in the U.S.; organic local-currency sales declined 0.9 percent in EMEA.