Value investing demands discipline and patience from its adherents, but it does ultimately reward the faithful. Owning Motley Fool Inside Value recommendation 3M
Like other conglomerates including United Technologies
Sales were pretty good, whichever number you look at. Reported revenue was up over 8%, local currency revenue was up more than 10%, and domestic revenue was up nearly 11% -- all of which were helped along by about 2% from acquisitions (mainly CUNO). Margins improved at the gross and operating levels, and per-share earnings were up a Stryker-like 20%.
Looking at the business segments, only health care and the display businesses stand out for missing out on the parade of double-digit segment operating income growth. Now, while there was some shifting of product groups across categories, I think it's still fair to say that 3M is experiencing broad-based growth. And once the company jettisons the pharmaceutical business, that'll improve health-care results and throw a few extra ducats in the kitty.
While I realize that at least some of 3M's success is due to better overall economic conditions, I think the company also merits credit for doing better in its own right. Factor in what I think will be an increased focus on product innovation and research and development, and I still like 3M's prospects even when the economy begins to cool a bit. Though maybe no longer a table-thumping "buy" as before, I'm not planning on selling these shares any time soon.
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Fool contributor Stephen Simpson owns shares of 3M but has no financial interest in any other stocks mentioned (that means he's neither long nor short the shares).