3M announces first-quarter sales of $7.5 billion and earnings of $1.59 per share

3M has reported record first-quarter sales of $7.5 billion, up 2.4 percent year-on-year. Earnings were $1.59 per share, an increase of 6.7 percent versus the first quarter of 2011, and operating margins for the quarter were 21.8 percent.

First-quarter organic local-currency sales grew 1.8 percent, acquisitions added 1.5 percent to sales and foreign exchange impacts reduced sales by 0.9 percent.

On a segment basis, sales increased 8.6 percent in Industrial and Transportation, 5.5 percent in Safety, Security and Protection Services, 4.3 percent in Con3M has reported record first-quarter sales of $7.5 billion, up 2.4 percent year-on-year. Earnings were $1.59 per share, an increase of 6.7 percent versus the first quarter of 2011, and operating margins for the quarter were 21.8 percent.sumer and Office and 2.0 percent in Health Care. Sales declined 3.4 percent in Electro and Communications and 11.8 percent in Display and Graphics, both impacted by the consumer electronics industry. On a geographic basis, sales grew 8.4 percent in Latin America/Canada, 6.3 percent in the United States and 0.1 percent in Europe. Sales declined 1.9 percent in Asia Pacific.

First-quarter net income rose 4.0 percent year-on-year to over $1.1 billion and earnings were $1.59 per share, an increase of 6.7 percent versus last year’s first quarter. First-quarter 2012 results included a $0.04 per share charge related to a voluntary retirement program and other restructuring actions. Total-company operating income margins were 21.8 percent for the quarter, with five business segments above 20 percent, and free cash flow was $567 million.

“We are off to a very good start in 2012 with record first-quarter sales and strong earnings,” said Inge G. Thulin, 3M president and chief executive officer. “3M employees everywhere did an outstanding job of managing in a challenging environment for growth.” 

Thulin continued, “Looking ahead, we will keep driving operational excellence to fund ongoing investments in innovation, commercialization and manufacturing. I am very confident in our ability to improve every aspect of our company and to keep delivering high-quality results into the future.”

With the announcement of the latest financial results, 3M Gulf also unveiled its expansion plans for the Middle East region, which is a key contributor to 3M global sales and new technology development.

Elaborating on 3M Gulf’s expansion plans in the Middle East region, Raghavan Manohar, Area Leader - Strategic Planning, M&A and Marketing Excellence, MEA said, “Strategic geographical expansions, building local capability, business model innovation and leadership development across the Middle East region are key constituents of 3M’s strategy in the Middle East. 3M Gulf is working towards expanding its presence in Saudi Arabia, Qatar and select African countries. This is in addition to elevating our supply chain capability for the MENA region”.

He further added, “With increased Government investment across key sectors including infrastructure, healthcare, safety and communication, the Middle East and Africa region presents a phenomenal growth opportunity for 3M. The key to success will be the prioritization of these opportunities and making strategic investments that will position 3M as the market leaders”.

3M also updated its 2012 performance expectations. The company now expects full-year earnings to be in the range of $6.35 to $6.50 per share versus a previous expected range of $6.25 to $6.50 per share. 3M continues to expect organic sales volume growth of 2 to 5 percent, and operating income margins in the range of 21.0 to 22.5 percent for the year.