3M recently reported record second quarter sales of $7.7 billion, up 14.1% year-on-year. Earnings rose 3.9% and operating margins were 21.6%. The company generated $1.2 billion in free cash flow during the quarter, equal to 100% of net income.
Sales increased in all geographic regions, with Europe up 24.1%, Latin America/Canada up 20.2%, Asia-Pacific up 11% and the U.S. up 8.7%. Five of the company’s six business segments expanded sales in the quarter, with particular strength in Industrial and Transportation at 24.6%; Safety, Security and Protection Services rose 19.7%.
On a worldwide basis, second quarter 2011 organic sales volumes rose 3.2% (5.6% excluding Japan earthquake impacts) and selling prices increased 0.8%. Acquisitions added 4% and foreign exchange impacts added 6.1% to second quarter sales growth.
“We posted record second quarter sales and earnings per share and generated significant free cash flow in the quarter, and we did so in the face of some sizable headwinds,” said George W. Buckley, chairman, president and CEO. “Most significant was the impact of the Japan earthquake, which was in line with our projections. In addition, a larger-than-anticipated contraction in LCD TV end-market demand affected our sales, reflecting a tighter consumer electronics market as OEMs work to reduce channel inventories and lower their unit costs. Without these two impacts, organic sales growth would have been 8%, so underlying strength remains.”
For more information, visitwww.3m.com.
3M Second Quarter Sales Rise 14%
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