Diversified manufacturer 3M (NYSE: MMM), St. Paul, MN, reported first-quarter sales of $7.4 billion, a year-over-year decrease of 2.2 percent. Organic local currency sales declined 0.8 percent, while foreign currency translation reduced sales by 3 percent.
Profit of $1.3 billion was up 6.3 percent from the same period a year ago.
On a geographic basis, organic local currency sales growth was 4.2 percent in Latin America/Canada, 1.7 percent in EMEA (Europe, Middle East and Africa) and 0.3 percent in the U.S., with a decline of 5.6 percent in Asia Pacific.
“Our team continued to execute the 3M playbook and delivered another solid operational performance in the first quarter,” said Inge Thulin, 3M’s president and CEO. “We expanded 3M’s profitability, improved our cash flow generation, and increased margins over a full percentage point. At the same time, we continued to invest in the business – including opening a new, world-class laboratory in the United States – while returning cash to our shareholders.”
In the industrial segment, sales were $2.6 billion, down 3 percent from first quarter 2015. Organic local currency sales decreased 1.9 percent. Sales growth was led by OEM, automotive aftermarket and 3M Purification. Geographically, sales increased in Latin America/Canada and EMEA, and declined in the U.S. and Asia Pacific. Industrial segment operating income was $617 million, up 3.6 percent year over year.
In the electronics and energy segment, sales were $1.1 billion, a year-over-year decrease of 13.6 percent. Organic local currency sales decreased 11.7 percent. On an organic local currency basis, electronics-related sales 18 percent with declines in both electronics materials solutions, and display materials and systems; energy-related sales declined 1 percent as growth in electrical markets was offset by declines in renewable energy and telecom. Sales declined in Asia Pacific and were flat in the other geographic areas. Electronics and energy segment operating income was $208 million, down 26.8 percent year over year.
In the safety and graphics segment, sales were $1.4 billion, up 2.9 percent year over year. Organic local currency sales increased 2.4 percent. Sales grew across all major geographies led by Asia Pacific, Latin America/Canada and the U.S. Operating income was $345 million, an increase of 3.1 percent year over year.
In the health care segment, sales were $1.4 billion, up 4 percent. Organic local currency sales increased 6.2 percent. Sales grew in all geographic areas led by Asia Pacific and Latin America/Canada. Operating income was $455 million, up 11.5 percent year over year.
Consumer segment sales were $1 billion, up 0.1percent. Organic local currency sales increased 2.8 percent. Sales grew in Asia Pacific and the U.S., and declined in Latin America/Canada and EMEA.. Operating income was $238 million, down 1.1 percent year over year.
