How Did Each Of 3M’s Segments Perform In Q1 2016?

Industrial Business

• Foreign currency negatively impacted sales by 3%, and organic local-currency sales declined 1.9%, led by a 5% fall in the US and 4% in Asia Pacific.
• Sales declined in abrasive systems, industrial adhesives and tapes, and aerospace commercial transportation.
• Weakness in the oil and gas end markets resulted in a fall in advanced materials.
• Sales grew in automotive OEM, automotive aftermarket, and 3M purification, as well as in Latin America and Canada (8%), and in EMEA (1%).
• Improvement in margins was a result of restructuring actions and lower raw material costs.

Safety & Graphics Business

• Sales growth was led by roofing granules, commercial solutions, and personal safety.
• Sales increased 4% in Asia Pacific, 2% in both the US and EEMA, and 1% in Latin America and Canada.
• Operating margins increased due to higher selling prices and lower material costs.

Health Care Business

• Sales growth was seen across the portfolio, led by food safety, and health information systems.
• 11% growth was seen in Asia Pacific, 9% in Latin America and Canada, 6% in EEMA, and 4% in the US.
• Operating margin improvement was due to a combination of higher selling prices, lower raw material costs, and organic volume increases.

Electronics and Energy Business

• 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.

Consumer Business

• Sales growth was led by construction and home improvement.
• Organic local-currency sales increased 2.8%, while foreign currency translations negatively impacted sales by 2.7%.
• Increase in sales was seen in Asia Pacific (6%), and the US (4%), while sales declined in Latin America and Canada (1%) and EEMA (5%).
• Higher advertising and merchandising investments negatively affected the margins.

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

• 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 Caused The Change In Sales For Each Of 3M’s Segments And How Does It Compare With 2014?
• 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?
• By What Percentage Did 3M’s Revenue & EBITDA Grow In The Last 5 Years?
• How Has 3M’s Revenue And EBITDA Composition Changed In The Last 5 Years?
• 3M: Year 2015 In Review
• What Is 3M’s Revenue And EBITDA Breakdown?

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