3M Q2 EPS increased 3% to $2.08Staff Writer | July 26, 2016
3M reported second-quarter earnings of $2.08 per share, an increase of 3 percent versus the second quarter of 2015. Sales declined 0.3 percent year-on-year to $7.7 billion.
3M Operating income was $1.9 billion
Operating income was $1.9 billion and operating income margins for the quarter were 24.4 percent, up 0.5 percentage points year-on-year. Second-quarter net income was $1.3 billion.
The company’s operating cash flow was $1.3 billion, contributing to conversion of 75 percent of net income to free cash flow.
3M paid $672 million in cash dividends to shareholders and repurchased $828 million of its own shares during the quarter.
Organic local-currency sales growth was 4.9 percent in Health Care, 2.7 percent in Consumer and 2.3 percent in Safety and Graphics, with declines of 1.4 percent in Industrial and 9.1 percent in Electronics and Energy.
On a geographic basis, organic local-currency sales growth was 4.8 percent in Latin America/Canada, 3.0 percent in EMEA (Europe, Middle East and Africa) and 0.4 percent in the U.S., with a decline of 5.4 percent in Asia Pacific.
Looking ahead, 3M now expects 2016 earnings to be in the range of $8.15 to $8.30 per share – up 8 to 10 percent year-on-year – versus a prior expectation of $8.10 to $8.45. ■