3M recently reported its results for the third quarter of 2019. Sales declined by 2% compared to the 2018 third quarter, to $8 billion. Organic local-currency sales declined 1.3% compared to the prior-year quarter.
“The 3M team delivered strong operational performance in the third quarter,” said Mike Roman, 3M chairman and CEO. “While the macroeconomic environment remains challenging, we executed well and built on the progress we made in the second quarter. We continued to effectively manage costs and reduce inventory levels, while generating strong margins and cash flow.
“We also continue to make good progress on our strategic priorities, including our recently-closed acquisition of Acelity, which is an exciting addition to 3M’s health care portfolio. Moving ahead we’ll continue to focus on driving operational improvements and investing for the future, which will position us for strong growth and premium returns as our markets recover.”
In the 2019 third quarter, total sales grew in 3M’s Health Care and Consumer segments, while Transportation and Electronics and Safety and Industrial both saw declines. On a geographic basis, total sales grew 0.8% in the U.S. and 0.6% in Latin America/Canada, with declines of 4.1% in EMEA (Europe, Middle East and Africa), and 5% in Asia-Pacific.
Sales declined by 5.7% in the Safety and Industrial segment, to $2.8 billion. Organic local-currency sales decreased 3.3%, foreign currency translation decreased sales by 1.6%, and divestitures decreased sales by 0.8%. Sales increased in roofing granules, but declined in personal safety, abrasives, industrial adhesives and tapes, electrical markets, closure and masking, and the automotive aftermarket.
In the Transportation and Electronics segments, sales dipped 4.4% to reach $2.5 billion. Organic local-currency sales decreased 3.4%, and foreign currency translation decreased sales by 1%. Sales increased in advanced materials, transportation safety, and commercial solutions, but declined in automotive and aerospace and electronics.
3M’s Health Care segment saw sales increase 4.7% in the 2019 third quarter, to $1.7 billion. Organic local-currency sales increased 2%, foreign currency translation decreased sales by 1.7%, and acquisitions increased sales by 4.4%. Sales grew in health information systems, food safety, medical solutions, and oral care, while drug delivery was flat and separation and purification saw a decrease.
Sales in the Consumer segment reached $1.3 billion, an increase of 1.7%. Organic local-currency sales increased 2.6%, and foreign currency translation decreased sales by 0.9%. Sales grew in home improvement and consumer health care, but declined in stationery and office supplies and home care.
Additional details are available at www.3m.com.
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