How Will 3M Perform In Q2 2016?

3M (NYSE:MMM) is expected to release its second quarter earnings on July 26, 2016, before markets open.

Highlights Of Q1:

1) Negative Impact Of Foreign Currency Fluctuations

• Foreign currency played a dampener, reducing sales by 3%.
• The biggest impact was seen in Latin America and Canada, where sales declined 15.7% due to FX.

2) Growth Driven By Safety & Graphics and Healthcare

• The segments witnessed growth rates of 2.9% and 4%, respectively.
• In Safety & Graphics, sales increased 4% in Asia Pacific, 2% in both the US and EEMA, and 1% in Latin America and Canada, with improving margins as a result of higher selling prices and lower material costs.
• In Healthcare, sales growth was seen across the portfolio, led by food safety, and health information systems.
• Growth in Healthcare was led by 11% growth in Asia Pacific, 9% in Latin America and Canada, 6% in EEMA, and 4% in the US.

3) Decline In The Electronics & Energy Segment

• Sales declined 18% on an organic local-currency basis, due to a soft end market demand and high channel inventory.
• Sales were flat in EEMA, Latin America and Canada, and the US, and declined 18% in Asia Pacific, where the company’s electronics business is concentrated.
• Lower organic volume and foreign currency effects negatively impacted the margins.
• 3M plans to reduce ~250 positions in this business worldwide, incurring a Q2 expense of $20M.

Have more questions on 3M? Have a look at these links below:

• Why Has 3M’s Stock Risen Over 20% Since The Beginning Of The Year?
• What Is The Growth Expected Of Markets Served By 3M’s Safety and Graphics Segment Over The Next 5 Years?
• What Is The Growth Expected Of Markets Served By 3M’s Health Care Segment Over The Next 5 Years?
• How Will 3M Perform In 2016?
• What Is The Growth Expected Of Markets Served By 3M’s Industrials Segment Over The Next 5 Years?
• What Is The Growth Expected Of Markets Served By 3M’s Electronics & Energy Segment Over The Next 5 Years?
• How Will 3M’s Strategy Of Acquisitions To Drive Growth Pan Out In The Future?
• Why Will The Health Care Segment Be A Key Growth Driver For 3M?
• What Was The Biggest Factor Which Resulted In A Change In Sales In Q1 2016 In Each Region For 3M?
• 3M Beats EPS, Revenue Estimates
• Will Organic Growth Drive 3M’s Q1 Earnings?
• What Does 3M’s Five-Year Growth Plan Entail?
• What Is 3M’s Plan With Regards To China?
• What Is The Geographic Breakdown of 3M’s Sales?
• How Does 3M Compare With Its Peers In Terms Of R&D Spending?
• What Is 3M’s Fundamental Value Based On Expected 2016 Results?
• How Will 3M’s Revenue And EBITDA Composition Change In The Next 3 Years?
• 3M: Year 2015 In Review
• What Is 3M’s Revenue And EBITDA Breakdown?

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