St. Paul, MN-based 3M Co., parent company of Top 40 supplier 3M/Promotional Markets (asi/91240), has announced that sales in the fourth quarter of 2016 ended December 31 were $7.3 billion, up 0.4% from a year ago, while sales for 2016 reached $30.1 billion, down 0.5% from 2015.
Operating income was $1.7 billion for the quarter, and $7.2 billion for the year. Operating income margins for the quarter were 22.7%, up 220 basis points year-over-year, and 24% for the year, up 110 basis points compared to 2015. Fourth-quarter GAAP earnings were $1.88 per share, a year-over-year increase of 13.3% over the same quarter last year. GAAP earnings for the year were $8.16, an increase of 7.7%.
“The fourth quarter capped a successful year for our enterprise, as we posted double-digit growth in earnings-per-share, expanded margins and delivered robust cash flow,” said Inge G. Thulin, chairman, president and CEO of 3M. “We also made incremental investments to accelerate growth in core platforms, while returning significant cash to shareholders.”
Organic local-currency sales increased 1.6% in the fourth quarter but fell 0.1% for the year, while divestitures decreased sales by 0.4% in the quarter. The impact of foreign currency translation reduced sales by 0.8% versus the last quarter of 2015, and by 1.2% for the year compared to 2015.
In a public release on earnings and projections, 3M reiterated that 2017 earnings will be between $8.45 and $8.80 per share with organic local-currency sales growth of 1% to 3%. 3M/Promotional Markets is ranked 15th on Counselor’s list of top 40 suppliers, with estimated 2015 revenue of $99 million.