3M (MMM) reported 4Q earnings on Tue 26 Jan 2016 (before open)

** charts before earnings **

 

** charts after earnings **

 

3M beats by $0.04, beats on revs; reaffirms FY16 EPS guidance:

• Reports Q4 (Dec) earnings of $1.66 per share (including $0.14 in restructuring charges), $0.04 better than the Capital IQ Consensus of $1.62; revenues fell 5.5% year/year to $7.3 bln vs the $7.21 bln Capital IQ Consensus. Organic local-currency sales declined 1.1% while acquisitions, net of divestitures, added 1.5% to sales. Foreign currency translation reduced sales by 5.8% year-on-year. Excluding restructuring, operating income was $1.6 billion in the quarter and operating margins were 22.1%, up 0.6%age points year-on-year.
  • Organic local-currency sales growth was 4.5% in Health Care and 2.7% in Consumer with declines of 1.8% in Industrial, 2.5% in Safety and Graphics, and 7.7% in Electronics and Energy.
  • On a geographic basis, organic local-currency sales growth was 1.1% in EMEA with declines of 0.4% in the U.S., 0.6% in Latin America/Canada and 2.7% in Asia Pacific.
• Co reaffirms guidance for FY16, sees EPS of $8.10-8.45 vs. $8.22 Capital IQ Consensus, with organic local-currency sales growth of 1 to 3%. 3M also expects free cash flow conversion to be in the range of 95 to 105%.