3M Company MMM reported disappointing results for third-quarter 2018 with both earnings and revenues missing estimates. The company’s adjusted earnings in the reported quarter were $2.58 per share, missing the Zacks Consensus Estimate of $2.70. However, earnings recorded an increase of 10.7% from the year-ago tally of $2.33.
In the third quarter, 3M Company’s net sales were $8,152 million, reflecting a decline of 0.2% from the year-ago quarter. The decrease was due to 1.5% negative impact from divestitures and 1.7% negative impact from foreign currency translation. This was partially offset by 1.2% gain from pricing, 1.7% gain from acquired assets and 0.1% favorable impact from volume growth.
Notably, the top line missed the Zacks Consensus Estimate of $8,421 million.
3M Company Price, Consensus and EPS Surprise
3M Company Price, Consensus and EPS Surprise | 3M Company Quote
On a geographical basis, sales in the United States increased 1.3% year over year, while that generated in the Asia-Pacific grew 1.6%. Europe, Middle East and Africa’s sales declined 3.9% and that from Latin America/Canada decreased 5.5%.
Segmental Details
The company reports net sales under five segments — Industrial, Safety and Graphics, Health Care, Electronics and Energy, and Consumer. The segmental information is briefly discussed below:
Revenues from the Industrial segment came in at $3,023 million, flat year over year. Results were driven by 2.2% growth in organic sales, offset by 2.1% negative impact from foreign currency translations and 0.1% negative impact from divestitures.
Revenues from the Safety and Graphics segment totaled $1,660 million, increasing 7% year over year. The improvement came on the back of 2.2% gain from organic sales growth as well as 7% gain from acquisitions, net of divestitures. This was partially offset by 2.2% negative impact from foreign currency translations.
Revenues from the Health Care segment were $1,445 million, reflecting a decline of 2.7% year over year. The decline was attributable to 1.1% fall in organic sales and 1.7% negative impact from foreign currency translations.