3M Affirms Long-Term Sales and Earnings Growth Objectives, Addresses 2015 Outlook
December 16 2014 - 06:00AM
Business Wire
Board Approves 20 Percent Increase in
First-Quarter 2015 Dividend
This morning, 3M Chairman, President and CEO Inge G. Thulin will
speak to investors and analysts at the 2015 outlook meeting in New
York City. Thulin will emphasize that the company is
well-positioned for long-term success.
The company is on track to deliver its long-term financial
targets, organic growth remains strong, and productivity is
improving margins in 2014 and 2015. Three key strategic levers
continue to drive the company forward: portfolio management,
investing in innovation and business transformation. These levers,
combined with more aggressive capital deployment, will drive
enhanced value creation.
3M will reiterate its 2013-17 financial objectives:
- Grow earnings per share 9 to 11 percent
per year, on average
- Grow organic sales 4 to 6 percent per
year, on average
- Achieve return on invested capital of
approximately 20 percent
- Convert approximately 100 percent of
net income to free cash flow
Senior Vice President and Chief Financial Officer Nicholas C.
Gangestad will provide an update on 3M’s 2015 earnings outlook,
along with its actions to enhance capital structure and increase
capital deployment.
Strong investments in research and development and capital
expenditures remain paramount to 3M’s organic growth-driven
business model. The company also seeks acquisitions to strengthen
the business and augment organic growth.
Further demonstrating confidence in the business, 3M announced
that its board of directors has declared a dividend increase of 20
percent for the first quarter of 2015. A steadily rising dividend
and premium margins are hallmarks of 3M. Next year marks 57
consecutive years of annual dividend increases, and 3M has paid
dividends without interruption for 98 years.
“The strength of 3M’s business model, including the ingenuity of
our scientists, continues to generate premium and sustainable value
for both our customers and shareholders,” Thulin said. “We are
delivering strong results quarter to quarter, and remain on track
to meet our long-term financial targets.”
For 2015, 3M anticipates earnings to be in the range of $8.00 to
$8.30 per share with organic local currency sales growth of 3 to 6
percent. The company expects that free cash flow conversion will be
in the range of 90 to 100 percent.
Today’s meeting will be webcast live beginning at 8 a.m. EST and
is scheduled to adjourn at approximately 11 a.m. EST. Investors can
access this meeting via the following:
- Live webcast at
http://investor.3M.com.
- Webcast replay: Go to 3M’s Investor
Relations website at http://investor.3M.com and click on “3M 2015
Outlook Meeting.”
Forward-Looking StatementsThis news release contains
forward-looking information about 3M's financial results and
estimates and business prospects that involve substantial risks and
uncertainties. You can identify these statements by the use of
words such as "anticipate," "estimate, "expect," "project,"
"intend," "plan," "believe," "will," "target," "forecast" and other
words and terms of similar meaning in connection with any
discussion of future operating or financial performance or business
plans or prospects. Among the factors that could cause actual
results to differ materially are the following: (1) worldwide
economic and capital markets conditions and other factors beyond
3M's control, including natural and other disasters affecting the
operations of 3M or its customers and suppliers; (2) 3M's credit
ratings and its cost of capital; (3) competitive conditions
and customer preferences; (4) foreign currency exchange rates
and fluctuations in those rates; (5) the timing and market
acceptance of new product offerings; (6) the availability and
cost of purchased components, compounds, raw materials and energy
(including oil and natural gas and their derivatives) due to
shortages, increased demand or supply interruptions (including
those caused by natural and other disasters and other events);
(7) the impact of acquisitions, strategic alliances,
divestitures, and other unusual events resulting from portfolio
management actions and other evolving business strategies, and
possible organizational restructuring; (8) generating fewer
productivity improvements than estimated; (9) unanticipated
problems or delays with the phased implementation of a global
enterprise resource planning (ERP) system, or security breaches and
other disruptions to 3M's information technology infrastructure;
and (10) legal proceedings, including significant developments that
could occur in the legal and regulatory proceedings described in
3M's Annual Report on Form 10-K for the year ended
December 31, 2013, and its subsequent quarterly reports on
Form 10-Q (the “Reports”). Changes in such assumptions or factors
could produce significantly different results. A further
description of these factors is located in the Reports under
“Cautionary Note Concerning Factors That May Affect Future Results”
and “Risk Factors” in Part I, Items 1 and 1A (Annual Report)
and in Part I, Item 2 and Part II, Item 1A (Quarterly Report). The
information contained in this news release is as of the date
indicated. 3M assumes no obligation to update any forward-looking
statements contained in this news release as a result of new
information or future events or developments.
About 3M3M captures the spark of new ideas and transforms
them into thousands of ingenious products. Our culture of creative
collaboration inspires a never-ending stream of powerful
technologies that make life better. 3M is the innovation company
that never stops inventing. With $31 billion in sales, 3M employs
89,000 people worldwide and has operations in more than 70
countries. For more information, visit www.3M.com or follow @3MNews
on Twitter.
3MInvestor Contacts:Matt Ginter,
651-733-8206orBruce Jermeland, 651-733-1807orMedia
Contact:Donna Fleming Runyon, 651-736-7646
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