On October 24th, 3M released their third quarter financial results. 

Highlights for the Consumer Division:

  • Sales of $1.3 billion, up 1.7% in U.S. dollars.
  • Organic local-currency sales increased 2.6% and foreign currency translation decreased sales by 0.9%.
  • On an organic local-currency basis:
    • Sales grew in home improvement and consumer health care; declined in stationery and office supplies and home care.
    • Sales grew in EMEA, Latin America/Canada, and the U.S.; declined in Asia Pacific.
  • Operating income was $308 million, up 2.3% year-on-year; operating margins of 23.2%.

“The 3M team delivered strong operational performance in the third quarter,” said Mike Roman, 3M chairman and chief executive officer. “While the macroeconomic environment remains challenging, we executed well and built on the progress we made in the second quarter. We continued to effectively manage costs and reduce inventory levels, while generating strong margins and cash flow.”

Roman continued, “We also continue to make good progress on our strategic priorities … Moving ahead we’ll continue to focus on driving operational improvements and investing for the future, which will position us for strong growth and premium returns as our markets recover.”

Fourth-Quarter and Full-Year 2019 Outlook

  • 3M provided its fourth-quarter 2019 GAAP earnings guidance to be in the range of $2.05 to $2.15 per share. 
  • 3M updated its full-year 2019 GAAP earnings to be in the range of $8.20 to $8.30 per share versus a prior expectation of $8.25 to $8.75 per share. 
  • 3M updated its full-year organic local-currency sales guidance to decline between 1% to 1.5% versus a prior expectation of minus 1% to plus 2%. 
  • The company updated its range for return on invested capital to 18.5% to 19.5% versus a prior expectation of 20% to 22% to include the impact of the Acelity, Inc. acquisition. 
  • Free cash flow conversion is now expected to be in the range of 105% to 110% versus a prior expectation of 95% to 105%. 

Source: 3M