3M Reports Sales Information for Month of August 2020
September 15 2020 - 6:30AM
Business Wire
Summary:
- Sales of $2.7 billion, up 2 percent year-on-year
- August sales negatively impacted by one fewer business day – 21
days this year vs. 22 days last year – or minus 5 percent
year-on-year impact
- Company provides revenue expectations for third quarter;
monthly sales updates to continue through end of 2020
3M (NYSE: MMM) today reported sales information for the month of
August 2020.
Total sales for August increased 2 percent year-on-year to $2.7
billion. Organic local-currency sales (which includes organic
volume impacts and selling price changes) declined 2 percent while
acquisitions, net of divestitures, and foreign currency translation
increased sales year-on-year by 3 percent and 1 percent,
respectively.
Total sales increased 23 percent in Health Care, 6 percent in
Safety and Industrial, and 3 percent in Consumer, while
Transportation and Electronics declined 11 percent. Organic
local-currency sales increased 6 percent in Health Care, 5 percent
in Safety and Industrial, and 2 percent in Consumer, while
Transportation and Electronics declined 11 percent.
On a geographic basis, total sales increased 7 percent in EMEA
(Europe, Middle East and Africa), and 4 percent in the Americas,
while Asia Pacific declined 2 percent. Organic local-currency sales
were flat in both the Americas (including the U.S. up 1 percent)
and EMEA, while Asia Pacific declined 5 percent (including China up
6 percent and Japan down 15 percent).
Sales for August 2020 were impacted by one fewer business day –
21 days this year versus 22 days last year – or minus 5 percent
year-on-year. Because the company will have one additional business
day in September 2020 versus September 2019, there will be no
year-on-year business day impact on the third-quarter 2020.
While significant global economic uncertainty remains due to the
COVID-19 pandemic, the company estimates, with one month left in
the quarter, its sales to be in the range of $8.2 to $8.3 billion
for the third-quarter. Given the current economic uncertainty, 3M
will continue its monthly reporting of sales information through
the end of the year to provide transparency on its ongoing business
performance.
Upcoming events
3M will participate in the Morgan Stanley Virtual 8th Annual
Laguna Conference on Thursday, Sept. 17, 2020. Mike Roman, chairman
and chief executive officer, and Monish Patolawala, senior vice
president and chief financial officer, will speak at 8:15 a.m.
EDT.
3M will host its third-quarter 2020 earnings conference call on
Tuesday, Oct. 27, 2020, at 8 a.m. CDT.
Both events will be webcast live, and a replay will be available
on 3M’s Investor Relations website at http://investors.3M.com.
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, regulatory, capital markets and
other external 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) risks related to public health crises such as the
global pandemic associated with the coronavirus (COVID-19); (3)
liabilities related to certain fluorochemicals, including lawsuits
concerning various PFAS-related products and chemistries, and
claims and governmental regulatory proceedings and inquiries
related to PFAS in a variety of jurisdictions; (4) 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, 2019, and
any subsequent quarterly reports on Form 10-Q (the “Reports”); (5)
competitive conditions and customer preferences; (6) foreign
currency exchange rates and fluctuations in those rates; (7) the
timing and market acceptance of new product offerings; (8) 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); (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) 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; (11) operational execution, including scenarios
where the Company generates fewer productivity improvements than
estimated; (12) financial market risks that may affect the
Company’s funding obligations under defined benefit pension and
postretirement plans; and (13) the Company's credit ratings and its
cost of capital. 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), as updated by
applicable Current Reports on Form 8-K. 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 96,000
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200915005390/en/
3M Investor Contacts: Bruce Jermeland,
651-733-1807 or Tony Riter, 651-733-1141 or Media Contact:
Stephen Sanchez, 651-737-5967
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