3M reported third-quarter earnings of $1.78 per share, an increase of 7.9% versus the third quarter of 2012. Sales grew 5.6% year-on-year to $7.9 billion. Organic local-currency sales grew 5.8%, acquisitions added 1.5% to sales and currency impacts reduced sales by 1.7% year-on-year.
Operating income was $1.7 billion and operating income margins for the quarter were 22.0%. Third-quarter net income was $1.2 billion and free cash flow was $0.7 billion.
The company paid $431 million in cash dividends to shareholders and repurchased $1.54 billion of its own shares during the quarter.
Organic local-currency sales growth was 8.1% in Safety and Graphics, 6.8% in Health Care, 6.2% in Industrial, 4.2% in Consumer and 3.8 in Electronics and Energy. On a geographic basis, organic local-currency sales grew 10.5% in Latin America/Canada, 6.8% in Asia Pacific, 4.5% in the U.S. and 4.3% in EMEA (Europe, Middle East and Africa).
“The 3M team delivered another strong performance in the third quarter,” said Inge G. Thulin, 3M’s chairman, president and CEO. “All business groups generated positive organic sales growth and operating margins above 20%. At the same time, we further strengthened the company through increased investments in innovation, commercialization and manufacturing. Finally, we returned $2 billion of cash to our shareholders during the quarter via dividends and gross share repurchases, or $4.8 billion through nine months of the year.”
3M updated its full-year performance expectations. The company anticipates 2013 earnings to be in the range of $6.65 to $6.75 per share versus a previous expectation of $6.60 to $6.85 per share. 3M expects full year organic local-currency sales growth of 3% to 4% versus a previous expectation of 2% to 5%.
3M Delivers Record 3Q 2013 Results
Published October 25, 2013
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