“The 3M team is delivering a robust performance in 2017, and is well-positioned to build on that momentum in 2018 – including strong, broad-based organic growth and expanded profitability,” said Thulin. “We are executing the 3M Playbook, which is making us even more competitive and enabling us to generate premium value for our customers and shareholders.”
Thulin will discuss the company’s three key levers, which are significant value-creators and key components of the 3M Playbook.
The first lever – Portfolio Management – is increasing customer relevance and allowing 3M to focus on its most profitable and fastest-growing businesses; since 2012, the company has realigned from 40 businesses to 24, while making strategic acquisitions and divestitures. Investing in Innovation is the second lever, and in 2018 3M plans to increase investments in research and development to $1.9 billion, or about 6% of sales. 3M continues to make good progress on its third lever – Business Transformation – which is enabling the company to better serve customers with even more agility and efficiency.
The company will also highlight investments in priority growth platforms – such as auto electrification, air quality and personal safety – along with its strong global business model including in the US and China.
With respect to guidance, 3M will announce its expectations for the full-year 2018:
• GAAP earnings per share of $9.60 to $10.00, an increase of 6% to 10%.
• Total sales growth of 5% to 7%; organic local-currency sales growth of 3% to 5%.
• Free cash flow conversion of 90% to 100% (assumes operating cash flow of $6.9 to $7.6 billion).