Stock in 3M Co (NYSE:MMM) was up strongly in Thursday’s premarket dealing after expectation-beating fourth-quarter results, which also came with news of a dividend raise and upbeat outlook for 2018.
Sales increased to US$8bn, up 9% year-on-year, with organic local currency sales growing by 6% and all business groups and geographic territories showing growth.
It reported US$2.10 of earnings per share (excluding the impact of tax reform), representing an increase of 11.7% for the stationary and office supplies group. Significantly, the figure was ahead of Wall Street expectations for US$2.03.
Net income was reported at US$523mln for the quarter, compared to US$1.16bn in the same period of 2016 and the GAAP version of earnings per share amounted to 85 cents compared to US$1.88 in the comparative period of the previous year.
“3M’s fourth quarter was marked by record sales, expanded margins and robust organic growth across all business groups and geographic areas,” said chief executive Inge Thulin.
“For 2017,we posted organic growth of 5 percent, along with healthy earnings, cash flow and return on invested capital.”
Annual sales amounted to US$31.7bn for the twelve month period, adjusted earnings per share was stated at US$9.17 and operating cash flow was reported at US$6.2bn.
Thulin added: “Going into 2018, we will increase investments further, and are positioned to continue generating premium value for our customers and premium returns for our shareholders.”
In 2017, the company returned some US$4.9bn to shareholders (via dividends and share buy-backs).
Looking to 2018, the company now expects GAAP earnings between US$10.20 and US$10.70, representing an upgrade from prior guidance of US$9.60 to US$10.00.
3M stock was up US$7.81 or 3.15% in premarket deals changing hands at US$255.50.