3M Reports Record Quarterly Sales
2.9% Year-Over-Year Gain Is All-Time Record For Company
Minnesota-based 3M, the parent company of Counselor Top 40 supplier 3M Promotional Markets (asi/91240), has announced its Q2 2013 sales totaled $7.8 billion, a 2.9% year-over-year gain and an all-time record for the company in the quarter. 3M also reported a quarterly profit of $1.2 billion, up from $1.17 billion during Q2 in 2012.
"This was a good quarter for 3M, with strong performances across the portfolio," said Inge Thulin, 3M's chairman and CEO. "Four of our five business segments achieved positive organic growth and posted operating margins above 21%."
Among its business units, only 3M's Electronics and Energy segment experienced a decrease in sales, slipping 2.1%. The company's Health Care (5.7%), Industrial (3.3%), Consumer (2.9%) and Safety and Graphics (2%) divisions all reported higher revenues. Geographically, 3M expanded its sales sharply by 8.5% in Latin America and Canada, but only by 0.8% in the U.S. Second quarter operating income was $1.7 billion, while free cash was $1.3 billion. "Our employees executed well in the face of continued slow economic growth," Thulin said.
Looking forward, 3M maintained its 2013 full-year performance expectations, anticipating earnings to be in the range of $6.60 to $6.85 per share, with organic local-currency sales growth of 2%-5%. As is customary in its financial statements, 3M did not break out revenues for 3M Promotional Markets. Counselor estimates 3M's 2012 North American ad specialty sales were $103.2 million, ranking the firm as the 12th largest supplier in the promotional products industry.