3M Reports Second Quarter 2021 Results

3M reported second quarter 2021 results and updated its 2021 full-year outlook.

Sales grew 24.7% year-on-year to $8.9 billion in 2Q 2020. Organic local-currency sales increased 21.4% while divestitures decreased sales by 0.7%. Foreign currency translation increased sales by 4.0% year-on-year.

Total sales grew 28.1% in Transportation and Electronics, 24.9% in Health Care, 22.4% in Safety and Industrial, and 20.4% in Consumer. Organic local-currency sales increased 24.2% in Transportation and Electronics, 23.2% in Health Care, 17.8% in Consumer, and 17.6% in Safety and Industrial.

“3M delivered strong performance in the second quarter, once again posting organic growth across all business groups and geographic areas, along with increased earnings and robust cash flow,” said Mike Roman, 3M chairman and CEO. “In an uncertain economic environment, our team executed well and drove innovation across our businesses, while continuing to build for the future.”

Second Quarter Results

Both second-quarter GAAP and adjusted earnings were $2.59 per share, resulting in year-on-year increases of 15% and 44% on a GAAP and adjusted-basis, respectively. Second quarter operating income was $2 billion with operating margins of 22%.

The company’s operating cash flow was $1.9 billion with adjusted free cash flow of $1.6 billion contributing to adjusted free cash flow conversion of 103%. 3M returned $1.4 billion to shareholders in the second quarter of 2021, including $858 million in cash dividends and $503 million of gross share repurchases.

Based on a strong first half of the year, 3M updated its guidance for full-year 2021. The company expects reported total sales growth of 7% to 10% with organic local-currency sales growth in the range of 6% to 9%.