3M Company Sales Up to 7.6 Billion in Q1 2015

Highlights of this quarter:

Local currency sales growth of 3.3% stems from endogenous growth

All local currency measurement from business division and regional keeps growing

Operating profit margin is as high as 22.8%, year-on-year growth of more than 0.9% from last year

$1.5 billion is given to shareholders through dividends and share repurchases 

In the first quarter dividends per share amount has grown by 20%

Announce to acquire Polypore stripping medium business at the $1 billion

(April 24, 2015, Shanghai, China) - Yesterday, 3M (NYSE: MMM) published the first quarter earnings report in 2015. This quarter they earned per share of $1.85, year-on-year growth of more than 3.4% from last year, but sales dropped 3.2%, that is $7.6 billion. Local currency sales growth of 3.3% stems from endogenous growth, and this quarter's sales year-on-year dropped 6.5% caused by foreign exchange conversion.

3M operating profit has more than $1.7 Billion in the first quarter, and operating profit margin is 22.8%, with year-on-year growth of more than 0.9% from last year. The net profit is $1.2 billion in this quarter, and the ratio is 66% from net profit into free cash flow.

This quarter, 3M $652 million cash dividends is given to shareholders, and dividends per share amount has grown by 20%, and the company stock is repurchased, whose worth is the $886 million.

In the first quarter company sales keeps growing in local currency, and electronic and energy group have increased by 5.8%, security and identity group increasing by 4.1%, medical products increasing by 3.0%, and industrial products group increasing by 2.7%, consumer products division increasing by 2.1%. According to geographical points, the growth of the Asia-pacific region is 5.6%, and regional currency sales has grown by 3.6%; Latin America/Canada, the United States has increased 3.1%;  the EMEA region (including: Europe, the Middle East and Africa) has increased by 0.3%.

The chairman, President and chief executive, G Inge Thulin of 3M company , says: "under pressure from the economic downturn at the beginning of 2015, this quarter's performance is still outstanding. The dollar's strength for the first quarter of sales, profits, and even the global economic growth has a negative effect. Despite the short-term challenges, we still has achieved every division and regional endogenous growth, and the operating profit has grown by nearly 1%.

Thulin adds: "We will continue to engage in research and development, commercialization and merger and acquisition investment, to ensure the long-term growth of the company. In February, 3M announced to acquire Polypore stripping medium business at the $1 billion, which will strengthen our existing filtering technology platform, and help the company to create new business growth opportunities.

Affected by the foreign exchange, the company pre-tax revenue loses about $90 million during this quarter, which is equivalent to reduce the $0.1 earnings per share. Looking forward to 2015, 3M predicts foreign currency exchange rate volatility will make earnings per share fall $0.2 firstly, maybe expands to between $0.4 and $0.35 in the future.

Considering the dollar remaining strong, 3M updates the financial forecasts of 2015. They expects the previous earnings per share from $8.00 to $8.30, which will be adjusted to between $7.80 to $8.10. Foreign currency conversion will cause the 2015 full-year sales growth to be reduced between 6% and 7%, higher than they previously expected between 4%-5%. 3M forecasts that the full year tax rate will be adjusted to 28.5%-28.5% from they previously expected 28%-29%.

Looking forward to 2015, 3M maintains the expectation of sales growth of between 3% and 6% about local currency sales growth of 3.3% that stems from endogenous growth. They confirms the expectation again that free cash flow for the whole year conversion will be between 90% and 100%.