“I am encouraged by our company’s progress and performance in the second quarter,” said Mike Roman, 3M chairman and CEO. “Our execution was strong in the face of continued slow growth conditions in key end markets, as we effectively managed costs and improved cash flow.”
Sales were down 2.6% to $8.2 billion in the second quarter of 2019. Organic local-currency sales decreased 0.9% while acquisitions, net of divestitures, increased sales by 0.1%. Foreign currency translation decreased sales by 1.8% year-on-year.
Total sales grew 5.8% in Health Care with declines of 0.5% in Consumer, 2.9% in Transportation and Electronics, and 9% in Safety and Industrial. Organic local-currency sales increased 3.5% in Health Care and 0.7% in Consumer, with declines of 1.2% in Transportation and Electronics, and 5% in Safety and Industrial.
On a geographic basis, total sales grew 1.7% in the US, with declines of 2.9% in Latin America/Canada, 3.5% in Asia Pacific, and 9.4% in EMEA (Europe, Middle East and Africa).
Second-quarter 2019 GAAP earnings were $1.92 per share, a decrease of 37.5% versus the second quarter of 2018. Second-quarter operating income was $1.7 billion with operating margins of 20.8%. The company’s operating cash flow was $1.7 billion, contributing to conversion of 110% of net income to free cash flow.