3M (MMM) Beats Q4 Earnings On Organic Growth, Guides Up
Zacks Investment Research | Jan 24, 2018 10:05PM ET
Driven by broad-based organic growth across all segments and geographies, 3M Company (NYSE:MMM) reported strong fourth-quarter 2017 results with healthy year-over-year increase in adjusted earnings and revenues. GAAP earnings for the reported quarter were $523 million or 85 cents per share compared with $1,155 million or $1.88 per share in the year-earlier quarter. The year-over-year decline in GAAP earnings despite higher sales was largely due to tax expense of $762 million or $1.25 per share.
Excluding non-recurring items, adjusted earnings for the quarter were $2.10, which comfortably beat the Zacks Consensus Estimate of $2.03. Adjusted earnings for 2017 were up 12.4% year over year to $9.17 per share.
Net sales were record high for fourth quarter at $7,990 million, up from $7,329 million in the year-ago quarter, and exceeded the Zacks Consensus Estimate of $7,878 million. Foreign currency translation impact increased sales by 2.7%, while organic local-currency sales improved 6% and acquisitions (net of divestitures) increased sales by 0.3%. Net sales for full year 2017 were $31,657 million compared with $30,109 million in 2016.
On a geographic basis, total sales increased 14.4% in Asia Pacific, 4% in Latin America/Canada, 3% in the United States and 17.1% in EMEA (Europe, Middle East and Africa). From a segment perspective, total sales increased 12.5% in Electronics and Energy, 6% in Health Care, 6.9% in Industrial, 7.3% in Consumer, and 10.7% in Safety and Graphics. Operating income in the reported quarter increased to $1,821 million from $1,665 million in the year-ago-quarter, resulting in respective operating margins of 22.8% and 22.7%.
3M Company Price, Consensus and EPS Surprise
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