3M China Creates Unprecedented Results in the Fourth Quarter

Recently, 3M (NYSE:MMM) released its fourth-quarter earnings report. The company achieved earnings per share of $1.62 in the quarter, up 14.9% from the same period last year. Sales increased by 2.4% year-on-year to US$7.6 billion. Growth in domestic currency derived from growth within the business grew by 3.4%, and the contribution rate of corporate mergers and acquisitions to sales was 0.7%. Changes in exchange rates led to a 1.7% year-on-year decrease in sales growth during the quarter. In the quarter, the company's sales and earnings per share reached new highs, breaking the 3Q history's highest level in the fourth quarter.

In the fourth quarter, 3M's operating profit reached 1.6 billion U.S. dollars, and operating margin was 20.9%. The net profit of 3M this season exceeded US$1.1 billion, and the proportion of net profit converted to free cash flow was as high as 131%.

This quarter, 3M paid dividends of 423 million U.S. dollars to shareholders and repurchased 1.7 billion U.S. dollars worth of company shares.

In the quarter, company sales increased in local currency, showing an increase of 5.8% in the Industrial Products Division, 4.8% in the Security and Labeling Division, 3.6% in the Medical Products Division, 1.3% in the Consumer Products Division, and Electronics and Energy Business. Ministry of growth 0.4%. By geographical region, local currency sales in the US increased by 4.5%, EMEA (including Europe, the Middle East, and Africa) increased by 3.4%, Asia Pacific increased by 3.3%, and Latin America/Canada increased by 2.2%.

Throughout 2013, 3M achieved a profit of $6.72 per share, a year-on-year increase of 6.3%. Sales increased by 3.2% year-on-year to $30.9 billion. Growth in local currency originated from the growth of the company's long-term sales grew by 3.4%, and the contribution rate of corporate mergers and acquisitions to sales was 1.4%, while changes in exchange rates led to a year-on-year increase in sales growth of 1.6%. The company's annual free cash flow conversion rate was 89%, and the return on capital was 20%.

In the whole year of 2013, 3M paid dividends of 1.7 billion U.S. dollars to shareholders and bought back shares worth 5.2 billion U.S. dollars.

"Quality performance in the fourth quarter marks a perfect conclusion for the company's successful development over the past year," said Inge G. Thulin, chairman, president and chief executive officer of 3M. "This quarter, we have achieved comprehensive performance in various business categories. With extensive and profitable sales growth, earnings per share rose by nearly 15%, and the conversion rate of free cash flow was as high as 131%, which not only helped the company continue to increase its investment in business, but also ensured sufficient cash bonuses to be returned. Our shareholders."

Thulin added: "3M's employees all over the world are united and enterprising, which will transform the company's vision and development strategy into a better reality, and will continue to enhance the 3M's agreement in the minds of customers. Specifically, we will fully rely on 'combination'. Management, 'investment innovation,' and 'transformation' are the 'three carriages' and more aggressive capital operation models to promote the company to generate more value."

3M announced its 2014 full-year performance forecast for the same period. The company expects to achieve annual earnings per share range of 7.30 to 7.55 US dollars. The company expects the domestic currency sales growth from 3% to 6% due to internal business volume. The company expects the conversion rate of free cash flow will remain between 90% and 100%.

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