3M’s Consumer segment in Q3 2018
3M’s (MMM) Consumer segment contributed 15.1% to the company’s total revenues in the third quarter compared to 15.7% in the third quarter of 2017. The segment reported revenues of $1.24 billion in the third quarter, a year-over-year decline of 3.4%. In the third quarter of 2017, the segment reported revenues of $1.28 billion.
The segment’s revenues fell due to a decline in its sales volume and unfavorable pricing that impacted the segment revenues negatively by 2.0%. The strong dollar had an adverse impact of 1.4% on the segment’s revenues.
By business, the Consumer segment’s growth was led by home improvement. Stationery and office supplies, home care, and consumer healthcare reported declines. Geographically, the Latin America/Canada region’s revenues rose 5.0%. The United States’ revenues fell 1.0%, the EMEA (Europe, Middle East, and Africa) region’s revenues fell 5.0%, and the Asia-Pacific region’s revenues fell 7.0%.
Operating income and margins
3M’s (MMM) Consumer segment reported operating income of $291.0 million in the third quarter, compared to $311.0 million in the third quarter of 2017 for a 6.4% decline year-over-year. It reported an operating profit margin of 23.5% in the third quarter compared to 24.3% in the third quarter of 2017, a decrease of 80 basis points on a year-over-year basis. The segment’s income and margin decreased primarily due to portfolio and footprint actions.
Investors can get exposure to 3M by considering the Invesco S&P 500 Equal Weight Industrials ETF (RGI), which holds 1.5% of its portfolio in 3M. The fund’s holdings include Dover (DOV), Deere (DE), and Honeywell (HON), which had weights of 1.5% each on October 24.