3M Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Provides Earnings Guidance for 2013
January 24, 2013 at 07:30 am EST
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3M Company reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported fourth-quarter earnings of $1.41 per diluted share, compared to $1.35 per diluted share, an increase of 4.4% versus the fourth quarter of 2011. Operating income was $1.4 billion, compared to $1.364 billion for the last year. Operating income margins for the quarter were 19.5%. Fourth-quarter net income was $1.0 billion and free cash flow was $1.2 billion. Sales rose 4.2% year-on-year from $7.089 billion to $7.4 billion, an all-time fourth-quarter record. Net income attributable to the company was $991 million, compared to $954 million for the last year. Income before income taxes was $1.409 billion, compared to $1.329 billion for the last year. Net cash provided by operating activities was $1.738 billion, compared to $1.738 billion for the last year. Purchases of property, plant and equipment was $507 million, compared to $517 million for the last year.
For the full year 2012, the company posted record sales of $29.9 billion, up 1.0% year-on-year from $29.611 billion for the last year. Full-year 2012 earnings were $6.32 per diluted share, compared to $5.96 per diluted share, an increase of 6.0%. Operating margins were 21.7% and return on invested capital was 20%. Operating income was $6.483 billion, compared to $6.178 billion for the last year. Net income attributable to the company was $4.444 billion, compared to $4.283 billion for the last year. Income before income taxes was $6.351 billion, compared to $6.031 billion for the last year. Net cash provided by operating activities was $5.300 billion, compared to $5.284 billion for the last year. Purchases of property, plant and equipment was $1.484 billion, compared to $1.379 billion for the last year.
The company affirmed its 2013 full-year performance expectations. The company anticipates 2013 earnings to be in the range of $6.70 to $6.95 per share with organic local-currency sales growth of 2 to 5%. The company also expects free cash flow conversion to be in the range of 90 to 100%.
3M Company is an industrial group organized around four product families:
- industrial products, safety and graphics materials (33.5% of net sales including intra-group): abrasive products, adhesives, cleaners, air and liquid filtration systems, anti-slip coating products, fire protection systems, road signage products, etc. The group also provides display equipment and graphics systems;
- electronics and energy products (26%): interconnection products, connectors, optical components, etc.;
- healthcare products (25.1%): orthopedic, chirurgical and respiratory materials, feminine hygiene products, dental products, etc.;
- consumer goods (15.4%): adhesive tape, self-adhesive papers, filters, projectors, screen supports, etc.
Net sales are distributed geographically as follows: Americas (56.2%), Asia/Pacific (25.9%), and Europe/Middle East/Africa (17.9%).
3M Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Provides Earnings Guidance for 2013