3M Posts Quarterly Sales Gains
3Q Sales Increased To $8.1 Billion
Minnesota-based 3M, the parent company of 3M Promotional Markets (asi/91240), has announced its third-quarter sales increased by 2.8% to $8.1 billion. Organic local-currency sales grew 3.9%, while acquisitions added 0.1% to revenues. Net income reached $1.3 billion, or $1.98 per share, an 11.2% gain over Q3 of 2013.
“This was another strong quarter for 3M,” said Inge G. Thulin, 3M’s chairman. “The 3M team once again delivered broad-based organic growth with operating margins exceeding 22% in all businesses. As we look forward, our focus will remain on actively managing the portfolio and strategically investing in the business to continue delivering profitable growth across the company.”
In U.S. dollars in Q3, 3M’s health care unit sales were up 4.7%, its electronics and energy unit sales increased 3.5%, and its industrial unit sales rose 3%. The firm’s consumer segment produced a 2.1% gain, while its safety and graphics division reported a 1.3% jump in revenues. Geographically, organic local-currency sales grew 6.0% in the U.S., 4.9% in the Asia Pacific region, 0.8% across Europe, the Middle East and Africa and 0.4% in Latin America and Canada.
In its full-year guidance, 3M now expects earnings in the range of $7.40 to $7.50 per share versus a prior forecast of $7.30 to $7.55. Local-currency sales growth is now expected to be 4%-5%, compared to 3%-6% previously forecast, although 3M expects foreign currency impacts will reduce sales by approximately 1.5%.
As is customary, 3M did not break out its ad specialty sales in its quarterly earnings statement. 3M Promotional Markets ranks as the 13th-largest supplier after Counselor estimated the company’s 2013 North American ad specialty revenue to be $100 million.