How Will 3M Perform In 2016?

+4.98%
Upside
106
Market
111
Trefis
MMM: 3M Company logo
MMM
3M Company

3M Revenue Growth 2016

 

3M’s (NYSE:MMM) revenue is expected to grow by 4% in 2016. While Q1 results were dampened as a result of negative foreign currency effects, and the Electronics and Energy segment declined 18% due to a soft end market demand and high channel inventory, a recovery is expected. A leading position in a number of markets served by its Industrials segment is expected to drive growth. Moreover, a number of acquisitions made by 3M will result in improved sales in the future. The slowdown in the Electronics and Energy segment has led the company to take actions, such as the reduction of 250 positions worldwide, with the majority of reductions on the electronics side of the business. The Healthcare segment is expected to be a key growth driver in the future, with high growth rates expected in China. Furthermore, the company’s decision to invest and grow its Health Information Systems business will prove to be beneficial as strong growth rates are predicted for the Healthcare IT market (CAGR of 5%-8% during 2015-2020). In a meeting held with its investors and analysts, President and CEO of 3M, Inge G. Thulin, also discussed plans to strengthen and streamline its supply chain and a how a greater focus on lean six sigma would result in improved customer service, operational efficiencies, and an increased cash flow.

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3M Segment Growth 2016 3M EBITDA Growth 2016

 

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for 3M.
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