3M Co. (NYSE: MMM) announced its financial results for the fourth quarter and full-year 2016. For the fourth quarter, net income increased 13.3% from $1.04 billion, or $1.66 per share, to $1.16 billion, or $1.88 per share, which was above analysts’ estimates of $1.87 per share. Sales of 3M increased 0.4% to $7.33 billion, which was in line with estimates by Thomson Reuters. In addition, sales of organic local-currency were up 1.6%, even though divestitures cut sales by 0.4%. Foreign currency translation also reduced sales by 0.8% compared with that of last year. The company paid $664 million to shareholders in cash dividends, and repurchased $924 million of its shares.
For the full-year 2016, GAAP earnings increased 7.7% to $8.16 per share, and sales dropped 0.5% to $30.1 billion. Organic local-currency sales were down 0.1%, and foreign currency translation reduced sales by 1.2%. The company paid cash dividend of $2.7 billion to shareholders and repurchased $3.7 billion shares for the full-year 2016.
“The fourth quarter capped a successful year for our enterprise, as we posted double-digit growth in earnings-per-share, expanded margins and delivered robust cash flow,” Inge G. Thulin, the chairman, president and and CEO of 3M, said in the statement.
“Throughout the year we executed the 3M playbook and delivered a strong operational performance, and built for the future through our three key levers: Portfolio Management, Investing in Innovation and Business Transformation. We are well positioned to build on this momentum and deliver another strong performance in 2017,” Thulin added.
For the full-year 2017, the company expected its earnings to be between $8.45 and $8.80 per share, free cash flow conversion to be between 95% and 105%.