3M announces Dividend hike after Reporting Q4 Financial Results

3M Co. (NYSE: MMM) reported its fourth quarter financial results, beating estimates in both revenue and earnings. 3M announced a 16 percent dividend hike to $1.36 on the strong quarterly results. Shares were up 2.5 percent on Thursday.

For the fourth quarter, 3M reported revenue of $8 billion, increasing 9 percent year over year, and beating analysts’ estimates by $110 million. 3M reported an adjusted EPS of $2.10, increasing 11.7 percent year over year, and beating analysts’ estimates of $2.03.

3M reported 6 percent growth in organic local-currency sales, growth in all business groups and all geographic areas.

Total sales grew 15 percent in Safety and Graphics, 12.5 percent in Electronics and Energy, 7.3 percent in Consumer, 6.9 percent in Industrial, and growth across all segments. The strong growth in individual segments led to 17.1 percent growth in EMEA (Europe, Middle East and Africa) and a 14.4 percent increase in Asia Pacific.

The tax reform resulted in a one time charge of $762 million, but regardless, 3M was able to return back $1.2 billion to shareholders in the quarter.

“3M’s fourth quarter was marked by record sales, expanded margins and robust organic growth across all business groups and geographic areas,” said Inge Thulin, 3M’s president and chief executive officer. “Our team’s performance capped a successful year for our enterprise. For 2017, we posted organic growth of 5 percent, along with healthy earnings, cash flow and return on invested capital.”

For the full year, 3M reported revenue of $31.7 billion, up 5.1 percent year over year. 3M returned $4.9 billion to shareholders throughout the year.

Thulin continued, “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.”

3M raised its 2018 full year earning guidance after its strong quarter. For 2018, on a GAAP basis, 3M expects an EPS of $10.20 to $10.70 versus its previous forecast of $9.60 to $10.00. The company expects organic local-currency sales to grow 3 to 5 percent.

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