On January 26, 3M reported fourth-quarter and full-year 2020 results and provided its 2021 financial outlook. Here are the highlights:

Fourth-Quarter Highlights:

  • Sales of $8.6 billion, up 5.8%; organic local-currency sales increased 5.5%
  • Both GAAP and adjusted EPS of $2.38
  • Operating cash flow of $2.5 billion; adjusted free cash flow of $2.1 billion, up 16%

Full-Year Highlights:

  • Sales of $32.2 billion, up 0.1%; organic local-currency sales declined 1.7%
  • GAAP EPS of $9.25; adjusted EPS of $8.74
  • Operating cash flow of $8.1 billion; adjusted free cash flow of $6.7 billion, up 18%
  • Reduced both total debt by $1.5 billion, or 7%, and net debt by $4.1 billion, or 23%
  • Returned $3.8 billion to shareholders via dividends and gross share repurchases

Consumer Segment Highlights:

  • Sales of $1.4 billion, up 10.6% in U.S. dollars. Organic local-currency sales increased 9.9% and foreign currency translation increased sales by 0.7%.
  • On an organic local-currency basis:
    • Sales increased in home improvement, home care, and consumer health care; sales declined in stationery and office supplies.
    • Sales grew in the Americas and EMEA; sales declined in Asia Pacific.
  • Segment operating income was $335 million, up 11% year-on-year; operating margins were 23.5%.

2021 Guidance:

  • Sales growth in the range of 5% to 8%, organic local-currency growth of 3% to 6
  • Earnings per share of $9.20 to $9.70

“The 3M team delivered a strong fourth quarter with organic growth across all business groups, robust cash flow and a double-digit increase in earnings per share,” said Mike Roman, 3M chairman and chief executive officer. “In an uncertain economic environment, we stayed focused on innovating for our customers, improving our operational execution and fighting the pandemic from every angle.”

“Throughout 2020 we distributed two billion respirators globally and supported the development and manufacturing of vaccines and therapeutics to help the world respond to COVID-19,” Roman continued. “We also took significant actions to transform and build 3M for the future, while advancing our core values. Moving forward we will continue to prioritize investments in growth, productivity and sustainability as we build on our progress and deliver strong results in 2021.”

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