3M (NYSE: MMM)reported first-quarter 2018 results. “Coming off a strong 2017, our team opened the new year with broad-based organic growth of three percent, with positive growth across all business groups,” said Inge G. Thulin, 3M chairman, president and chief executive officer. “We also continued to invest in our commercialization capabilities, while returning significant cash to our shareholders – including a 16 percent dividend increase. Going forward we will continue to execute the 3M Playbook and leverage the world-class capabilities of our people and our enterprise, and I am confident we will deliver strong results in 2018.”
Sales were up 7.7 percent to $8.3 billion. Organic local-currency sales increased 2.8 percent while acquisitions, net of divestitures, increased sales by 0.7 percent. Foreign currency translation increased sales by 4.2 percent year-on-year.
First-quarter operating income was $1.0 billion with operating margins of 12.2 percent. Excluding the legal settlement, operating income was $1.9 billion with operating margins of 23.0 percent.
3M paid $810 million in cash dividends to shareholders and repurchased $937 million of its own shares during the quarter.
Sales of $3.1 billion, up 7.1 percent in U.S. dollars. Organic local-currency sales increased 2.2 percent, and foreign currency translation increased sales by 4.9 percent. Sales growth was led by abrasives, automotive and aerospace, and industrial adhesives and tapes; automotive aftermarket declined. Sales grew in Asia Pacific, Latin America/Canada, and the U.S.; EMEA was flat. Operating income was $719 million, an increase of 7.3 percent year-on-year; operating margin of 22.9 percent.