3M Company reported net profit growth per share by 2018 by 12.1%. Sales of the company amounted to $ 32.8 billion. The U.S., which is 3.5% more than in 2017.
Key indicators of the fourth quarter of 2018:
- sales amounted to 7.9 billion dollars. USA, which is 0.6% less than in the fourth quarter of 2017
- Sales in local currency grew by 3.0%. Growth in all business groups and all regions.
- Net income was $ 2.27. The United States, based on action against 0,85$. USA in 2017. Growth was 167% compared with the same period last year. Adjusted earnings per share was 2.31 dollars. USA compared to $ 2.1. USA in 2017.
- $ 2.1 billion. USA returned to shareholders via dividends and gross share buybacks.
Key indicators 2018:
- with sales of $ 32.8 billion. The U.S., which is 3.5% more than in 2017.
- Sales in local currencies increased by 3.2%. Growth was observed in all business groups and all regions.
- Net profit made up 8.89 USD. The United States, based on the action vs of 7.93 USD. USA in 2017, the Growth was 12.1% compared to last year. Adjusted earnings per share amounted to us $ 10,46. - From 9.17 USD. The United States for 2017.
- of 8.1 billion. USA returned to shareholders via dividends and gross share buybacks.
“In the fourth quarter, the company 3M has shown good results that were in line with our expectations, said Mike Roman, CEO of 3M company. We provided organic sales growth of three percent, which includes growth in all business groups and all regions at the same time with intense cash. The fourth quarter successfully closed an important year for 3M, and we will continue to work in the same direction to strengthen our company. In the future our team will continue to focus on four main priorities-product portfolio, business transformation, innovation, and corporate culture and employee development, which are key elements of growth and value creation. We are focused on successful 2019 and will be focused on working in the interests of customers and shareholders”.
fourth quarter Results
In the fourth quarter of 2018 net profit per share was $ 2.27. United States, showing an increase of 167% against the same period last year.
sales decreased by 0.6% to 7.9 billion. USA. Organic sales growth in local currency was 3.0%, while the sale of assets decreased the final result by 1.3%. Fluctuations in currency exchange rates decreased total sales by 2.3% compared to the fourth quarter of 2017.
Operating profit for the fourth quarter of 2018 amounted to 1.8 billion dollars. U.S. operating profit margin of 22.4%. Operating cash flow of the company amounted to 2.3 billion dollars. USA,helped by translation of 128% of net income in free cash flow.
For the quarter, 3M paid out to the shareholders of 787 million dollars. USA as cash dividends and repurchased own shares in the amount of 1.3 billion dollars. USA.
sales Growth observed in business groups: Health care (2.4%), Safety and schedule (0.3 percent), Consumer goods (0.1 percent). Business group and electronics Industry and energy showed a decline of 0.3% and 4.5%, respectively.
Sales growth in local currencies was noted in the groups Health (4.8 percent), electronics and power engineering (4.1%) and Safety and graphics (3.3 per cent), Industry (2.5%) and Consumer goods (1.9 percent).
In the regional cut of the total sales volume grew 3.3% in the United States, while sales decreased by 0.8% in the Asia-Pacific region, 2.8% in Latin America and Canada and by 6.4% in the region Europe, middle East and Africa.
sales Growth in national currencies amounted to 5.0% in Latin America and Canada, 4.4 percent in the U.S., 2.0 percent in the Asia - Pacific region at 1.3% in Europe, middle East and Africa.
Fourth quarter: statistics on business groups of the company
Industry
- sales Volume was 3.0 billion dollars. USA, which is 0.3% less compared to the same period last year. Sales in local currencies grew by 2.5%, the sale of assets reduced total sales by 0.1%, while currency fluctuations decreased the final result by 2.7%.
Sales in local currencies:
sales Growth was observed in the areas of materials for industry-polymers and energy, industrial adhesive tapes and adhesives, filtration, abrasive materials, materials for repair.
sales Growth in all regions of presence. The most significant growth was observed in the United States, Latin America and Canada and also in Europe, middle East and Africa.
- Operating profit amounted to 627 million. USA, which is 8.1% more than the same period last year; operating margin — 21,2%.
Security and graphics
- sales of $ 1.6 billion dollars. USA, which is 0.3% more than the same period last year. Sales in local currencies increased by 3.3 percent, fluctuations in currency exchange rates decreased total sales by 2.8%, and the acquisition of other companies net of expenses decreased sales by 0.2%.
Sales in local currencies:
- sales Growth was observed in the areas of personal protection and commercial schedules, reducing product for road safety and roofing granules.
- sales Growth was observed in Latin America and Canada, in the United States and Europe, middle East and Africa; the decline — in the Asia-Pacific region.
- Operating profit amounted to 345 million. USA, which is 14.8% less than the same period last year; operating margin — at 22.0%.
Electronics and power engineering
- sales of $ 1.3 billion dollars. United States, a decrease of 4.5% over the same period last year. Sales in local currencies increased by 4.1%, fluctuations in currency exchange rates reduced the final amount by 1.5% and sale of assets reduced the result by 7.1%,
Sales in local currencies:
- Growth in sales of energy solutions was 5%, electronics - 3%.
- sales Growth was observed in Latin America/Canada, USA and Asia Pacific; sales declined in Europe, middle East and Africa.
- operating profit amounted to 396 million dollars. USA or 8.2% more than the same period last year. Operating margin in the fourth quarter of 2018 29,5%.
Results
In 2018, a net profit per share made up 8.89 USD. United States, showing an increase of 12.1% compared with the 2017 year.
According to the results of 2018 the sales volume grew by 3.5% to $ 32.8 billion. USA. Organic sales growth in local currencies amounted to 3.2%. The sale and purchase of the assets in aggregate have provided an increase of 0.1% in 2018. Fluctuations in currency exchange rates decreased total net sales by 0.2%. Annual operating margin amounted to 22.0%, while the adjusted operating margin — of 24.7%, or 40 basis points more than in 2017.
Operating cash flow of the company amounted to $ 6.4 billion. The US, aided by the transfer of 91% of net income in free cash flow.
At the end of 2018 3M paid to its shareholders for 3.2 billion dollars. USA as cash dividends and repurchased its own shares for $ 4.9 billion. USA.
Updated forecast for the year 2019
The Company has updated the forecast for 2019 in terms of their expectations for profit and sales growth in local currencies, taking into account external factors and the expected completion of the acquisition of the business process of M*Modal, which was not previously considered. Currently, 3M is projecting earnings per share in 2019 will amount to 10.90 of 10.45 USD. The United States, including a profit of $ 0.10 / kWh. U.S. per share from the acquisition of M*Modal. Previously, the company forecast profit in the range of 10.60 to 11.05 USD. USA per share. 3M has also expanded the range of the forecast for organic sales growth in local currencies with 2-4% to 1-4%.
The Company did not change its forecast, according to which the conversion of available funds will be in the range 95-105% and the return on investment will be 22–25%.