St. Paul, MN-based 3M reported its 2015 second quarter earnings on Thursday, which showed a continued downward sales trend in industrial and safety products.
The manufacturer reported Q2 overall sales of $7.7 billion, down 5.5 percent year-over-year. Foreign exchange headwinds reduced sales by 7.3 percent, while organic local currency sales grew 1.8 percent.
Total Q2 profit was $1.3 billion, up from $1.27 billion a year ago, and up from $1.2 billion in Q1.
Q2 operating income was $1.8 billion. On a geographic basis, organic local-currency sales grew 4.1 percent in the U.S., 0.8 percent in Latin America/Canada, 0.5 percent in Asia Pacific, and 0.4 percent in EMEA (Europe, Middle East and Africa).
3M's Industrial business segment had Q2 sales of $2.6 billion, down 6.4 percent year-over-year. Organic local-currency sales increased 1.4 percent and foreign currency translation reduced sales by 7.8 percent. The company said organic local currency sales growth was led by 3M purification, aerospace and commercial transportation, and automotive OEM. Sales grew in the U.S. and Latin America/Canada; Asia Pacific was flat; EMEA sales declined slightly. Operating income was $609 million, a decline of 1.2 percent year-over-year.
The Safety and Graphics business segment had Q2 sales of $1.4 billion, down 4.1 percent from last year. Organic local-currency sales increased 4.9 percent and foreign currency translation reduced sales by 9.0 percent. 3M said organic sales grew in all businesses led by roofing granules, commercial solutions, and personal safety. Sales increased in Asia Pacific, the U.S. and EMEA; Latin America/Canada sales declined. Operating income was $364 million, an increase of 3.1 percent year-over-year.
"In the face of a mixed economic environment, the 3M team delivered positive organic growth in all geographic areas while expanding worldwide margins by over a full point," saidInge G. Thulin, 3M’s chairman, president and chief executive officer. "We also continued to invest in our future, including strategic acquisitions. In June, we announced the acquisition of Capital Safety, which will bolster our personal safety platform and build on our fundamental strengths in technology, manufacturing, global capabilities and brand."