3M Delivers Fourth-Quarter Sales of $7.4B and Earnings of $1.41 per Share

3M reported fourth-quarter earnings of $1.41 per share, an increase of 4.4% versus the fourth quarter of 2011. Operating income was $1.4 billion and operating income margins for the quarter were 19.5%. Fourth-quarter net income was $1.0 billion and free cash flow was $1.2 billion.

Sales rose 4.2%t year-on-year to $7.4 billion, an all-time fourth-quarter record. Organic local-currency sales grew 4.3%, acquisitions added 0.9% to sales and currency impacts reduced sales by 1.0% year-on-year.

Organic local-currency sales growth was 8.7% in Consumer and Office, 8.3% in Display and Graphics, 5.9% in Health Care, 3.9% in Industrial and Transportation and 1.8% in Electro and Communications; Safety, Security and Protection Services declined 1.7 % year-on-year. On a geographic basis, organic local-currency sales grew 9.7% in Latin America/Canada, 5.8% in Asia Pacific, 5.2% in the U.S. and declined 1.0% in EMEA (Europe, Middle East and Africa).

For the full year 2012, 3M posted record sales of $29.9 billion, up 1.0% year-on-year. Organic local-currency sales grew 2.6% and acquisitions added 0.8% to sales. Foreign currency translation reduced sales by 2.4% year-on-year.

Four of the company’s six business segments posted full-year organic local-currency growth, led by Health Care at 4.7% and Industrial and Transportation at 4.5%. Latin America/Canada was the fastest-growing geographic region in 2012 at 10.9%, followed by the U.S. at 4.2 %.

Full-year 2012 earnings were $6.32 per share, an increase of 6.0 percent. Operating margins were 21.7% and return on invested capital was 20%.

“Fourth-quarter was a good finish to a successful year for 3M,” said Inge G. Thulin, 3M chairman, president and CEO. “Our people executed well in the face of challenging macroeconomic conditions and we have built good momentum to innovate and move forward in 2013.”

3M affirmed its 2013 full-year performance expectations. The company anticipates 2013 earnings to be in the range of $6.70 to $6.95 per share with organic local-currency sales growth of 2 to 5%. 3M also expects free cash flow conversion to be in the range of 90 to 100 %