3M Beats on Strong International Performance

3M reported strong international sales helped the company increase earnings 7.4% in the third quarter Friday. The diversified manufacturer earned $960 million ($1.32/share) compared to $894 million ($1.18/share) last year. Revenues increased 5.4% to $6.18 billion. Analysts' were looking for $1.28/share on sales of $6.29 billion. "All of our businesses posted positive worldwide local-currency sales growth, led by a 17 pct increase in healthcare. Geographic diversity was also an important factor as all regions drove positive growth in local currencies, led by double-digit performances in Europe and Latin America," said CEO George W. Buckley in his statement. The company increased its full-year 2007 earnings projections to $5.54 to $5.62/share from $5.40 to $5.60 before. However, it also lowered its revenue growth in local currency terms to 7%-8%, down from 7%- 10%. 3M is up 21% this year, but slipped after its release, trading down 1.0% to $94.73.

Sources: Press release, Wall Street Journal
Commentary: 3M Taking Sony, Others to Court over Battery Patent Infringement • 3M Gifts Shareholders with $7 Billion Share Buyback
Stocks to watch: MMM. Competitors: DD, AVY.ETFs: VIS, XLI

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Comments

[Burns]

Yes, strong international sales helped 3M acheive record profits. But before you have those sales (be they international or domestic) you need competent strategies that attract sales. In this field, 3M may be second to none www.newsvisual.com/new... . Their Directors have experience with such firms as UPS, IBM, Goldman Sachs, Merrill Lynch, Sara Lee, United Airlines, etc. Since these companies are all involved in international business and represent different industries, to me this means that in almost any problem 3M faced someone would probably have had experience with that particular problem. Experience like this is how you build things.

[ladders11]

Down over 7% today?

Ex-US sales are over 60%. Great fundamentals. Current P/E Ratio as % of 5-Y Average P/E: 74.0%. P/E as % of Industry Group: 84.0%.

[ladders11]

Down over 7% today?

Ex-US sales are over 60%. Great fundamentals. Current P/E Ratio as % of 5-Y Average P/E: 74.0%. P/E as % of Industry Group: 84.0%.