3M reports subtle growth for fourth quarter and full year 2016

On January 24th 2017, 3M reported financial results for the fourth quarter and full year of 2016. The results include growth in most areas, with a small decline in sales for the full year of 2016.   

“The fourth quarter capped a successful year for our enterprise, as we posted double-digit growth in earnings-per-share, expanded margins and delivered robust cash flow,” said Inge G. Thulin, 3M’s chairman, president and chief executive officer. “We also made incremental investments to accelerate growth in core platforms, while returning significant cash to shareholders.”

Financial Performance

Q4

For the fourth quarter of 2016, 3M reported sales of $7.3 billion, representing 0.4% growth year-over-year. Industrial sales increased 3.0% to $2.5 billion, while Safety and Graphics sales of $1.3 billion, up 0.6%.

Health care sales were down 0.1% to $1.4 billion for the quarter, with Electronics and Energy sales down 1% to $1.2 billion.  Consumer sales were $1.1 billion, down 0.7% for the quarter.

Operating cash flow for the quarter was $2.2 billion. Operating margin of 22%, up 220 bps.

Operating income reported for the quarter was $1.7 billion, showing growth from $1.5 billion in the fourth quarter of 2015.

GAAP earnings per share (EPS) was $1.88, up 13.3% year-over-year.

Full Year

For full year 2016, 3M made sales totalling $30.1 billion, representing a slight decline from $30.3 billion in 2015.

Operating cash flow for the year was $6.7 billion. Operating margin for 2016 was 24.0%, up 110 bps.

Operating income reported was $7.2 billion, up from $6.9 billion in 2015.

GAAP earnings per share (EPS) for full year 2016 was $8.16, compared with $7.58 billion in the previous year.

The Stock Market

As of 10:00 GMT on February 3rd 2017, 3M stock (NYSE: MMM) is trading at a value of 174.18 USD per share after a decline of 0.57%. The highest weekly close was 174.78 USD.

In the fourth quarter of 2016, 3M returned $1.6 billion to shareholders, while in the full year of 2016, 3M returned $6.4 billion to shareholders via dividends and gross share repurchases.

According to analysts at GSI Markets, 3M stock peaked on January 19th 2017 at 178.68 USD per share, yet dropped dramatically to 175.97 on January 24th. To find out how to trade 3M stock with minimal risk to your investment, consult an expert at GSI Markets. 

See more at: Forex Rates