3M company announced it has reached a record quarterly sales of $ 8.1 billion; Earnings per share amounted up to 1.91 dollars

3M Company  (New York Stock Exchange: MMM) today reported that for the second quarter in 2014 it made a profit of $ 1.91 per share, an increase of 11.7% compared to the same period in 2013. Sales increased by 4.9% compared to the same period last year and amounted to $ 8.1 billion  - sales growth in local currencies was 4.8%. Acquisitions helped increase sales by 0.1 percent. Changes in exchange rates, in turn, affected the sales volume to the same extent as in the same period last year.

Operating income for the second quarter was $ 1.9 billion, and operating margin for the quarter was 22.8%. Second-quarter net income was $ 1.3 billion, and the company could translate into free cash flow 103% of net profit.

For the quarter, 3M company has paid its shareholders $ 556 million as dividends in cash and repurchased its own shares in the amount of $ 1.4 billion

The following business groups 3M showed sales growth in local currencies: 6.4% - Electronics and Energy; 5.1% - Health; 4.7% - Industrial Materials; 4.7% - Security and Graphs, and 4.2% - Consumer. In partial analysis of markets, we can conclude that the volume of sales in local currencies compared to the same period last year increased by 6.6% in the Asia-Pacific region; 4.8% in Europe, Africa and the Middle East; 4.5% in the U.S.; and 2.7% in Latin America and Canada.

"The second quarter of the year appeared a very confident for the company - Inge Thulin (Inge G. Thulin), chairman, president and chief executive officer of 3M said. - We have achieved steady sales growth in local currencies in all business groups and in all regions, so that earnings per share exceeded 10%. Successful work has contributed to increase the flow of investment and operating margin -compared with the same period in last year- was almost 23%. "

Mr. Tulin added: "In addition to excellent performance of the company, we are actively working with the capital to make our company more profitable and ensure profit by our shareholders. On July 16 we announced the acquisition of the remaining 25% stake in Sumitomo, 3M subsidiary in Japan for 885 million dollars. The Shareholders were paid $ 2.0 billion as dividends and repurchase of the shares. I thank all 3M employees for the results that the company shows in 2014.

"The company reiterated its forecast for 2014: 3M expects a profit of U.S. $ 7.30-7.55 per share. The company is confident that sales in local currencies will grow by 3-6%. Changes exchange rates, in turn, it leads to a reduction in sales by about 1% per year. FCF will be 90-100%.

Second quarter: statistics on business groups

Materials for industry

• Sales were $ 2.8 billion, which  is 4.9%  higher compared to the same period last year, when stated in U.S. dollars. Sales in local currencies increased by 4.7% and currency fluctuations increased overall sales by 0.2%.
•Sales in local currencies:
- Growth in sales primarily in the following departments: filtering materials, materials for the automotive industry, and materials for the aircraft industry, abrasives, industrial tapes and adhesives.
- Sales growth in all regions, the greatest growth in the Asia-Pacific region, the United States, Europe, Africa and the Middle East. Slight decrease is in sales in Latin America and Canada.
• Operating profit amounted up to 617 million dollars, which is 2.4% higher compared to the same period last year, operating margin was 21.9%.

Electronics and Energetic

• Sales volume reached $ 1.4 billion, which is 6.2% higher compared to the same period last year when calculating in the U.S. dollar. Sales in local currencies increased by 6.4%, but currency fluctuations reduced overall sales by 0.2%.
• Sales in local currencies:
- Sales increased in the departments of the electronics industry by 11%. Sales increased in the departments of energy sector by 1%.
- Sales growth in Latin America and Canada, the Asia-Pacific region as well as in Europe, Africa and the Middle East. Sales in the U.S. remained unchanged.
• Operating profit amounted up to 293 million dollars, which is 23.4% higher compared to the same period last year; operating margin was 20.6%.