3M reported second-quarter earnings of $1.71 per share, an increase of 3% versus the second quarter of 2012. Sales grew 2.9% year-on-year to a record $7.8 billion. Organic local-currency sales grew 2.3% and acquisitions added 1.9% to sales. Currency impacts reduced sales by 1.3% year-on-year.
Operating income was $1.7 billion and operating income margins for the quarter were 22%. Second-quarter net income was $1.2 billion and free cash flow was $1.3 billion.
The company paid $436 million in cash dividends to shareholders and repurchased $1.2 billion of its own shares during the quarter.
Organic local-currency sales growth was 5.7% in Health Care, 3.3% in Industrial, 2.9% in Consumer and 2% in Safety and Graphics; Electronics and Energy declined 2.1% year-on-year. On a geographic basis, organic local-currency sales grew 8.5% in Latin America/Canada, 2.2% in Asia Pacific, 1.9% in EMEA (Europe, Middle East and Africa) and 0.8% in the U.S.
“This was a good quarter for 3M, with strong performances across the portfolio,” said Inge G. Thulin, 3M’s chairman, president and CEO. “Four of our five business segments achieved positive organic growth and posted operating margins above 21%. We converted 107% of net income to free cash flow in the quarter, which fueled ongoing investment in the business and allowed for significant cash returned to shareholders. Our employees executed well in the face of continued slow economic growth.”
The company now expects full-year gross share repurchases will be in the range of $3.5 billion to $4.5 billion versus a previous range of $2 billion to $3 billion.
3M Reports Record 2Q 2013 Results
Published July 26, 2013
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