3M has affirmed its 2017 full-year performance expectations after experiencing “a successful year” following the release of the company’s fourth-quarter and full-year 2016 results.
[quote]“The fourth quarter capped a successful year for our enterprise, as we posted double-digit growth in earnings-per-share, expanded margins and delivered robust cash flow,” said 3M’s chairman, president and CEO Inge G. Thulin.[/quote]
[quote]“We also made incremental investments to accelerate growth in core platforms, while returning significant cash to shareholders.”[/quote]
3M’s fourth-quarter GAAP earnings were $1.88 per share, an increase of 13.3 per cent compared to the fourth quarter of 2015.
Sales increased by 0.4 per cent year on year to $7.3 billion and organic local-currency sales increased by 1.6 per cent, while divestitures reduced sales by 0.4 per cent.
The company’s operating income was $1.7 billion and operating income margins for the quarter were 22.7 per cent, up 220 basis points year-on-year. Fourth-quarter net income was $1.2 billion.
The company’s operating cash flow was $2.2 billion, contributing to conversion of 154 per cent of net income to free cash flow, as referenced in the “Supplemental Financial Information Non-GAAP Measures” section.
3M paid $664 million in cash dividends to shareholders and repurchased $924 million of its own shares during the quarter.
[quote]“Throughout the year we executed the 3M playbook and delivered a strong operational performance, and built for the future through our three key levers: portfolio management, investing in innovation and business transformation,” said Thulin.
“We are well positioned to build on this momentum and deliver another strong performance in 2017.”[/quote]
3M expects 2017 earnings to be in the range of $8.45 to $8.80 per share with organic local-currency sales growth of 1 to 3 percent. 3M also expects free cash flow conversion to be in the range of 95 to 105 percent, as referenced in the “Supplemental Financial Information Non-GAAP Measures” section.