HomeMy WebLinkAbout2016 04-26 3M beats first-quarter expectations STAR TRIBUNE4/26/2016
3M beats first-quarter expectations - StarTribune.com
BUSINESS
3M beats first-quarter expectations
Sales fall, but profit jumps.
By Dee DePass (http://www.startribune.com/dee-depass/10644746/) Star Tribune
APRIL 26, 2016 — 7:35AM
3M Co., like most multinational companies, saw first quarter results nipped by currency
exchange rates. However, it pulled off a 6 percent boost in profits, beating Wall Street
expectations.
The Maplewood -based maker of Scotch tape, respirators, Post -it notes and cellphone
screen brighteners reported that profits rose to $1.28 billion, or $2.05 per share, during
the quarter despite sales that fell 2 percent to $7.4 billion.
Officials credited the sales decline mainly to negative currency exchange rates.
On average, Wall Street analysts had expected first quarter profits of $1.92 per share and
revenue of $7.33 billion.
"Our team continued to execute the 3M playbook and delivered another solid
operational performance in the first quarter," said 3M CEO Inge Thulin in a statement.
During the quarter, three of 3M's five major business units posted positive organic -sales
growth once foreign currency exchange rates were excluded. Health care, consumer and
safety/graphics enjoyed respective sales bumps of 6, 3 and 2.4 percent.
The industrial and electronics/energy divisions, however, saw organic sales fall 1.9
percent and 11.7 percent, respectively. Troubles in both sectors were anticipated by
analysts who noted serious global slowdowns in industrial segments related to oil,
agriculture, mining and in China, Brazil and parts of Europe.
3M warned in January that fourth-quarter woes seen in electronics and energy might
continue into the first quarter. And they did.
Geographically, the first quarter saw flat sales in the United States, declines in Asia and
gains in Canada, Latin America and Europe.
3M maintained its outlook for full year 2016. Officials said they still expect "same
currency" 2016 sales to rise 1 to 3 percent and for earnings to rise 7 to 10 percent to $8.10
to $8.45 per share.
3M has operations in 70 countries and sells products to customers in 200 countries.
dee.depass@startribune.com 612-673-7725 DePassStrib
(http://stmedia.startribune.com/images/3M102413.jpg)
ARIANA LINDQUIST, BLOOMBERG
3M's first quarter results beat expectations
and its shares are expected to open higher
when trading begins this morning.
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