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Organic Growth Drives Up 3M’s 1Q17 Revenues

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Nov. 20 2020, Updated 3:27 p.m. ET

3M’s 1Q17 revenues

3M (MMM) reported revenues of ~$7.7 billion in 1Q17, a rise of 3.7% year-over-year compared to ~$7.4 billion in 1Q16. It managed to beat Wall Street analysts’ estimate of ~$7.5 billion.

The rise in 3M’s revenue was primarily driven by better-than-expected organic growth across all segments, with the exception of the Consumer segment. We’ll be looking at each of these reporting segments in the upcoming parts of this series.

Geographically, Asia Pacific led 3M’s growth at 10.1%. The EMEA (Europe, the Middle East, and Africa) rose 4.0%, and Latin America and Canada rose 2.3%. The United States had the lowest growth rate of 1.3%.

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CEO’s remark and revenue guidance

Inge Thulin, 3M’s chair, president, and chief executive officer, said, “The 3M team delivered a strong start to 2017, marked by organic sales growth of 5 percent – with positive growth in all geographic areas. At the same time, we increased investments across the enterprise to further accelerate growth and improve productivity, while increasing our dividend for the 59th consecutive year.”

Based on its strong performance in 1Q17, 3M expects organic growth of 2.0%–5.0% against its earlier guidance of 1.0%–3.0%.

Peer comparison

3M’s peer General Electric (GE) reported its 1Q17 earnings, with total revenue of ~$27.7 billion. Stanley Black & Decker (SWK) announced its 1Q17 earnings on April 21, 2017, reporting revenues of $2.8 billion, a 5.0% rise from the previous year. Honeywell (HON) also announced its 1Q17 earnings on April 21, 2017, reporting revenues of $9.5 billion. For the complete Honeywell 1Q17 earnings, read our series Why Wall Street Is Optimistic about Honeywell after 1Q17 Results.

You can indirectly hold 3M by investing in ETFs such as the ProShares Ultra Dow30 (DDM), which has 4.8% of its portfolio in 3M as of April 24, 2017.

In the next part of this series, we’ll look at the performances of each of 3M’s reporting segments in 1Q17.

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