Boston, MA 08/05/2014 (wallstreetpr) – During the 2Q2014, 3M Co (NYSE:MMM) recorded a year-over-year growth of 4.8% in organic local currency sales. The company’s operating earnings were reported to be $1.86 billion, whereas the operating income was up 0.8 percentage points year-over-year to reach 22.8%. Also, the global industrial company paid $556 million as cash-dividends to its stockholders and also re-owned $1.4 billion of its shares. During the quarter, the conglomerate managed to switch 103% of its net income into free cash flow.
CEO commented:
The company’s Chief Executive Officer, President and Chairman, Inge G. Thulin, mentioned that the optimistic growth in the organic sales across all businesses as well as geographic areas steered the company to accrue high EPS growth rate during the period. 3M is also setting up capital more firmly to increase the shareholders’ returns as well as to advance its business. Thulin, while referring to a declaration of July 16 also added that the company has purchased the rest of 25% stake of Sumitomo 3M Co (NYSE:MMM)’s ancillary in Japan in exchange of a takeover value of $885 million.
Improvement in net sales:
The Minnesota-based company’s quarterly net sales touched the figure $8.13 billion, an improvement over $7.75 billion in the similar quarter a year back. Further, net income attributable to the company of $1.27 billion was also up from $1.20 billion registered in the year-ago quarter, but marginally less than the market expectations. 3M Co (NYSE:MMM)’s earnings per diluted share of $1.91 surpassed the earnings per diluted share posted in the prior year same quarter, where it stood at $1.74. However, the earnings per diluted share this year were in line with the estimates.
Company to expand the business fast:
Thulin, who stepped into the role of the CEO at the St. Paul-based company, in early 2012 in fact, has widened the R&D budget, concentrated on global growth as well as realigned business units. He mentioned that 3M Co (NYSE:MMM) would prefer to develop fast-expanding business lines like water filtration and air.
