St. Paul, MN-based industrial conglomerate 3M reported its 2018 first quarter financial results on Tuesday, which showed continued solid gains in its Industrial segment.
3M posted Q1 total sales of $8.3 billion, up 7.7 percent year-over-year (YoY) and up from $8.0 billion in Q4 2017. First quarter organic sales increased 2.8 percent in local currency. 3M's Q1 profit of $602 million was down 55 percent YoY due to the Tax Cuts and Jobs Act and a legal settlement. Adjusting for those items, profit increased 15.7 percent.
In 3M's Industrial segment, Q1 sales of $3.1 billion grew 7.1 percent YoY, with organic sales up 2.2 percent. Organic growth was led by abrasives, automotive and aerospace, industrial adhesives and tapes, while automotive aftermarket declined. Sales grew in Asia Pacific, Latin America/Canada and the U.S., while EMEA was flat. Industrial's operating profit of $719 million increased 7.3 percent YoY, with operating margin of 22.9 percent.
3M's Safety and Graphics segment had Q1 sales of $1.8 billion, up 15 percent YoY, with organic sales up 6.9 percent. Organic growth was driven by increased sales across all businesses, led by personal safety, commercial solutions and roofing granules. Sales grew in all geographic areas, led by Asia Pacific, the U.S. and EMEA. Operating profit of $483 million jumped 21.1 percent, with operating margin of 27.1 percent.
In 3M's other segments:
- Health Care had Q1 sales of $1.5 billion grew 7.1 percent YoY, with organic sales up 2.7 percent. Operating profit of $460 million increased 7 percent.
- Electronics and Energy Q1 sales of $1.4 billion grew 4.6 percent YoY, with organic sales up 1.7 percent. Operating profit of $337 million jumped 31.3 percent, with operating margin of 24.9 percent.
- Consumer Q1 sales of $1.1 billion grew 5.0 percent YoY, with organic sales up 2.1 percent. Operating profit of $218 million decreased 2.4 percent, with operating margin of 19.3 percent.
On March 6, 3M announced that it will transition CEOs on July 1, Michael Roman succeeding current CEO Inge Thulin.