How Will 3M Perform In Q2 2016?

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

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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.

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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.

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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:


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
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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