3M Sales Increase Across Business Segments
Rose By 2%
Minnesota-based 3M, the parent company of Top 40 supplier 3M Promotional Markets (asi/91240), announced this morning that it grew its sales and profits in its most recent quarter. The company’s revenues rose by 2% in the fourth quarter, boosted by gains in all of its business segments.
“3M delivered strong results in the fourth quarter, which culminated a solid 2014 performance,” said Inge Thulin, 3M’s chairman, president and CEO. “Organic growth was positive across all business groups and geographic areas, and operating margins rose by nearly a full point. We once again generated substantial free cash flow, which allowed for continued investment in our businesses and significant return of cash to our shareholders.”
The company said it had sales of $7.72 billion in the quarter and profits of $1.18 billion, which was an increase from the $1.1 billion in profits the company attained in the same period a year ago. As Thulin pointed out in his statement, 3M achieved revenue increases in each of its businesses. Industrial sales rose 1.4% to $2.6 billion, while Health Care sales gained 2.4% to $1.4 billion. Electronics and Energy sales rose 3.3% to $1.4 billion, while Safety and Graphic sales climbed 3.4% to $1.4 billion in the quarter. Consumer sales rose 2.2% to $1.1 billion in the quarter. 3M, though, does not specifically break out the results of its promotional products business in its quarterly statements.
Looking forward, 3M affirmed its full-year 2015 expectations, saying that it is forecasting sales growth of between 3% and 6% for the year. 3M Promotional Markets ranks as the 13th-largest supplier in the industry, with a Counselor estimated $100 million in 2013 North American ad specialty sales.