How Did The Different Segments Of 3M Perform In The Second Quarter?

Industrial Segment

• Organic growth fell 1.4%, reflecting continued economic challenges in the industrial sector.
• Sales growth in the automotive OEM, automotive aftermarket, and abrasives, was offset by declines across the rest of the portfolio.
• An increase in sales in the Latin America and Canada region and EMEA was seen, while it declined in Asia Pacific and the US.
• Manufacturing activity remained soft in the second quarter in the US.
• The segment was recently awarded a $93 million body armor contract from the US Defense Logistics Agency, to be realized over the next 18 months.
• The Membrana acquisition continues to deliver strong results, exceeding expectations, and was awarded two contracts in China.

Safety & Graphics Segment

• Roofing granules business posted double-digit organic growth, with increased demand in the replacement shingle market.
• Acquisitions, net of divestitures, added 4.6% to the sales growth.
• Improvement in this segment was led by Latin America and Canada, and the US with mid-single digit growth.

Health Care Segment

• Sales grew across all businesses and in all geographies, led by Latin America and Canada, and Asia Pacific.
• Strong growth was seen in developing markets of China/Hong Kong, Taiwan, and Mexico.
• By business, organic growth was driven by food safety, health information systems, and medical consumables.

Electronics & Energy

• Organic sales growth declined 9.1%, with those in the Electronics side declining 14%.
• Weak end-market demand across consumer electronics continue to negatively impact sales.
• The company’s Energy-related business fell 2%, with strong performance in Telecom being more than offset by declines in electrical markets and renewable energy.
• Asia Pacific sales fell by double digits, impacted by the declines in electronics.
• Actions taken in the quarter to better position the segment going forward resulted in the fall in margins.
• The company expects the organic sales in this segment to decline by high single digits for the year.

Consumer Segment

• Organic growth of 2.7% seen in this segment, led by home improvement and consumer health care businesses.
• Growth in this segment was driven by Asia Pacific, along with strong growth in the US.
• Investments in Command damage-free mounting products and ScotchBlue painter’s tape drove strong double-digit organic growth.

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

• How Did 3M Perform In The Second Quarter?
• How Will 3M Perform In Q2 2016?
• 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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