3M Co. Meets Q2 Estimates Thanks to Asia, Electronics

3M screen coatings can enhance color quality. Electronics sales jumped 11% year-over-year in the second quarter. Source: 3M.

Shares of technology and materials supplier 3M (NYSE: MMM  ) rose as much as 1.8% in pre-market trading today after the company released results for the second quarter of 2014.

3M saw sales rising 5% year-over-year, stopping at $8.1 billion. Earnings increased by 12% to $1.91 per diluted share. Both figures were in line with analyst estimates.

Sales in local currencies declined 2% in the Latin America/Canada segment. Local sales rose in every other geographical area, led by a 6% surge in the Asia-Pacific market. Negative currency exchange effects in Latin America and Asia were largely canceled by favorable currency translation on orders from Europe, the Middle East, and Africa.

All five of 3M's reportable business segments recorded single-digit year-over-year sales improvements. Electronics and energy led the way with just over 6% higher sales. Health care sales were up 5.9%. Within the leading division, electronics revenue rushed 11% higher while energy supplies sat back on 1% growth.

In a prepared statement, 3M CEO Inge Thulin expressed satisfaction with his company's execution in this quarter.

"Strong productivity fueled increased growth investments, and operating margins increased year-on-year to nearly 23 percent," Thulin said. "In addition to a strong operating performance, we are also deploying capital more aggressively to both improve the business and to enhance shareholder returns. On July 16, we announced the acquisition of the remaining 25 percent of our Sumitomo 3M subsidiary in Japan for a purchase price of $885 million. And during the second quarter we paid $2.0 billion to shareholders via a combination of cash dividends and gross share repurchases."

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3042248, ~/Articles/ArticleHandler.aspx, 10/1/2014 2:46:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement