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Industrial Segment
- Organic growth fell 1.4%, reflecting continued economic challenges in the industrial sector.
- Sales growth in the automotive OEM, automotive aftermarket, and abrasives, was offset by declines across the rest of the portfolio.
- An increase in sales in the Latin America and Canada region and EMEA was seen, while it declined in Asia Pacific and the US.
- Manufacturing activity remained soft in the second quarter in the US.
- The segment was recently awarded a $93 million body armor contract from the US Defense Logistics Agency, to be realized over the next 18 months.
- The Membrana acquisition continues to deliver strong results, exceeding expectations, and was awarded two contracts in China.
Safety & Graphics Segment
- Roofing granules business posted double-digit organic growth, with increased demand in the replacement shingle market.
- Acquisitions, net of divestitures, added 4.6% to the sales growth.
- Improvement in this segment was led by Latin America and Canada, and the US with mid-single digit growth.
Health Care Segment
- Sales grew across all businesses and in all geographies, led by Latin America and Canada, and Asia Pacific.
- Strong growth was seen in developing markets of China/Hong Kong, Taiwan, and Mexico.
- By business, organic growth was driven by food safety, health information systems, and medical consumables.
Electronics & Energy
- Organic sales growth declined 9.1%, with those in the Electronics side declining 14%.
- Weak end-market demand across consumer electronics continue to negatively impact sales.
- The company's Energy-related business fell 2%, with strong performance in Telecom being more than offset by declines in electrical markets and renewable energy.
- Asia Pacific sales fell by double digits, impacted by the declines in electronics.
- Actions taken in the quarter to better position the segment going forward resulted in the fall in margins.
- The company expects the organic sales in this segment to decline by high single digits for the year.
Consumer Segment
- Organic growth of 2.7% seen in this segment, led by home improvement and consumer health care businesses.
- Growth in this segment was driven by Asia Pacific, along with strong growth in the US.
- Investments in Command damage-free mounting products and ScotchBlue painter's tape drove strong double-digit organic growth.
Have more questions on 3M? Have a look at these links below:
- How Did 3M Perform In The Second Quarter?
- How Will 3M Perform In Q2 2016?
- Why Has 3M's Stock Risen Over 20% Since The Beginning Of The Year?
- What Is The Growth Expected Of Markets Served By 3M's Safety and Graphics Segment Over The Next 5 Years?
- What Is The Growth Expected Of Markets Served By 3M's Health Care Segment Over The Next 5 Years?
- How Will 3M Perform In 2016?
- What Is The Growth Expected Of Markets Served By 3M's Industrials Segment Over The Next 5 Years?
- What Is The Growth Expected Of Markets Served By 3M's Electronics & Energy Segment Over The Next 5 Years?
- How Will 3M's Strategy Of Acquisitions To Drive Growth Pan Out In The Future?
- Why Will The Health Care Segment Be A Key Growth Driver For 3M?
- What Was The Biggest Factor Which Resulted In A Change In Sales In Q1 2016 In Each Region For 3M?
- 3M Beats EPS, Revenue Estimates
- Will Organic Growth Drive 3M's Q1 Earnings?
- What Does 3M's Five-Year Growth Plan Entail?
- What Is 3M's Plan With Regards To China?
- What Is The Geographic Breakdown of 3M's Sales?
- How Does 3M Compare With Its Peers In Terms Of R&D Spending?
- What Is 3M's Fundamental Value Based On Expected 2016 Results?
- How Will 3M's Revenue And EBITDA Composition Change In The Next 3 Years?
- 3M: Year 2015 In Review
- What Is 3M's Revenue And EBITDA Breakdown?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for 3M .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
