3M Completes Sale of Substantially All of Its Communication Markets Division
June 04 2018 - 8:00AM
Business Wire
3M today announced that it has completed the sale of
substantially all of its Communication Markets Division to Corning
Incorporated, for approximately $870 million, before closing and
other adjustments.
The business includes 3M’s optical and copper passive
connectivity solutions for the telecommunications industry,
including 3M’s xDSL, FTTx, and structured cabling solutions.
The sale of the telecommunications system integration services
portion of the business based in Hannover, Germany, remains pending
and is expected to be completed by the end of 2018 for
approximately $30 million.
Total annual global sales of the business are approximately $400
million.
3M expects to realize a full-year 2018 earnings benefit of $0.40
to $0.45 per share from this transaction, net of actions related to
the divestiture.
Forward-Looking Statements
This news release contains forward-looking information about
3M's financial results and estimates and business prospects that
involve substantial risks and uncertainties. You can identify these
statements by the use of words such as "anticipate," "estimate,"
"expect," "aim," "project," "intend," "plan," "believe," "will,"
"should," "could," "target," "forecast" and other words and terms
of similar meaning in connection with any discussion of future
operating or financial performance or business plans or prospects.
Among the factors that could cause actual results to differ
materially are the following: (1) worldwide economic, political,
and capital markets conditions and other factors beyond the
Company's control, including natural and other disasters or climate
change affecting the operations of the Company or its customers and
suppliers; (2) the Company's credit ratings and its cost of
capital; (3) competitive conditions and customer preferences; (4)
foreign currency exchange rates and fluctuations in those rates;
(5) the timing and market acceptance of new product offerings; (6)
the availability and cost of purchased components, compounds, raw
materials and energy (including oil and natural gas and their
derivatives) due to shortages, increased demand or supply
interruptions (including those caused by natural and other
disasters and other events); (7) the impact of acquisitions,
strategic alliances, divestitures, and other unusual events
resulting from portfolio management actions and other evolving
business strategies, and possible organizational restructuring; (8)
generating fewer productivity improvements than estimated; (9)
unanticipated problems or delays with the phased implementation of
a global enterprise resource planning (ERP) system, or security
breaches and other disruptions to the Company's information
technology infrastructure; (10) financial market risks that may
affect the Company’s funding obligations under defined benefit
pension and postretirement plans; and (11) legal proceedings,
including significant developments that could occur in the legal
and regulatory proceedings described in the Company's Annual Report
on Form 10-K for the year ended Dec. 31, 2017, and any subsequent
quarterly reports on Form 10-Q (the “Reports”). Changes in such
assumptions or factors could produce significantly different
results. A further description of these factors is located in the
Reports under "Cautionary Note Concerning Factors That May Affect
Future Results" and "Risk Factors" in Part I, Items 1 and 1A
(Annual Report) and in Part I, Item 2 and Part II, Item 1A
(Quarterly Reports). The information contained in this news release
is as of the date indicated. The Company assumes no obligation to
update any forward-looking statements contained in this news
release as a result of new information or future events or
developments.
About 3M
At 3M, we apply science in collaborative ways to improve lives
daily. With $32 billion in sales, our 91,000 employees connect with
customers all around the world. Learn more about 3M’s creative
solutions to the world’s problems at www.3M.com or on Twitter @3M
or @3MNews.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180604005636/en/
3MMedia:Fanna Haile-Selassie,
651-736-0876orInvestors:Bruce Jermeland, 651-733-1807orTony
Riter, 651-733-1141
3M (NYSE:MMM)
Historical Stock Chart
From Mar 2024 to Apr 2024
3M (NYSE:MMM)
Historical Stock Chart
From Apr 2023 to Apr 2024