3M has reported second-quarter 2020 results sales of $7.2 billion, down 12.2% compared to last year. Organic local-currency sales declined 13.1%, while acquisitions, net of divestitures, increased sales by 2.4%. Foreign currency translation reduced sales by 1.5% year-on-year. The company also noted improving sales trends with July month-to-date sales up low-single digits year-on-year.
Total sales declined 0.4% in Health Care, 6.2% in Consumer, 9.2% in Safety and Industrial and 20.9% in Transportation and Electronics. On a geographic basis, total sales declined 8.5% in Asia Pacific, 12.7% in the Americas and 16.4% in EMEA (Europe, Middle East and Africa). Organic local-currency sales decreased 8.1% in Asia Pacific, 14.5% in EMEA and 15.6% in the Americas.
Second-quarter GAAP earnings were $2.22 per share, an increase of 15.6% year-on-year, with operating income of $1.7 billion and operating margins of 24.3%.
Excluding special items, second-quarter adjusted earnings were $1.78 per share, a decline of 16.4% year-on-year, with operating income of $1.4 billion and operating margins of 19.6%. The company’s operating cash flow was $1.9 billion with adjusted free cash flow of $1.5 billion contributing to adjusted free cash flow conversion of 149%.
“While our results were significantly impacted by the global economic slowdown, we executed well, managed our costs and delivered another quarter of robust cash flow,” said Mike Roman, 3M chairman and chief executive officer. “We are taking actions to navigate near-term challenges, while relentlessly innovating for our customers and investing for the future to lead out of the slowdown and continue to deliver long-term value for our shareholders.
“Globally across 3M, we continue to fight the pandemic from all angles and help ensure the safety of our employees, healthcare workers and first-responders, and the public,” Roman continued. “I remain incredibly proud of how our team is leading through these unprecedented times, and I thank all 3Mers for their tireless efforts.”
The company reported global production of nearly 800 million respirators in the first half of 2020 with approximately 50% distributed in US, primarily to healthcare and FEMA. The company is on-track to produce approximately 2 billion globally, including 1 billion in the US for full-year 2020.
This article courtesy of Russell Thrall III, publisher CollisionWeek. Check out their website at: www.collisionweek.com.