Diversified technology company 3M Co. (MMM) reported Thursday a profit for the fourth quarter that grew 4 percent from last year, reflecting improved margins and higher sales amid volume growth. Earnings per share matched analysts' expectations, while quarterly revenue topped their estimates. The company also affirmed its earnings forecast for the full-year 2013.
"Fourth-quarter was a good finish to a successful year for 3M. Our people executed well in the face of challenging macroeconomic conditions and we have built good momentum to innovate and move forward in 2013," Chairman, President and CEO Inge Thulin said.
The St. Paul, Minnesota-based company reported net income of $991 million or $1.41 per share for the fourth quarter, higher than $954 million or $1.35 per share in the prior-year quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.41 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Sales grew 4.2 percent to an all-time fourth-quarter record of $7.39 billion from $7.09 billion in the same quarter last year, and topped ten Wall Street analysts' consensus estimate of $7.18 billion. Organic local-currency sales grew 4.3 percent.
Organic volumes grew 3.6 percent, selling prices rose 0.7 percent, and acquisitions added 0.9 percent, while foreign exchange reduced sales by 1.0 percent in the quarter, the company said.
Industrial and transportation sales were up 3.8 percent to $2.49 billion, health care sales increased 5.6 percent to $1.33 billion, as well as consumer and office sales rose 7.7 percent to $1.10 billion, while safety, security and protection services sales declined 2.5 percent to $904 million from last year. Further, electro and communications sales edged up 1.0 percent to $776 million, as well as display and graphics sales grew 10.6 percent to $910 million from a year ago.
On a geographic basis, sales grew 7.2 percent in Latin America/Canada, 5.1 percent in Asia Pacific, and 7.1 percent in the U.S., while it declined 2.2 percent in Europe, Middle East and Africa or EMEA.
Operating income for the quarter grew 5.8 percent to $1.44 billion, and operating income margins expanded 30 basis points to 19.5 percent from last year.
For fiscal 2012, the company reported net income of $4.44 billion or $6.32 per share, higher than $4.28 billion or $5.96 per share in the year ago. Net sales edged up to $29.90 billion from $29.61 billion last year, and organic local-currency sales grew 2.6 percent. Street was looking for full-year 2012 earnings of $6.32 per share, on annual revenues of $29.79 billion.
Looking ahead to fiscal 2013, 3M reaffirmed its earnings outlook to a range of $6.70 to $6.95 per share, on projected organic local-currency sales growth of 2 to 5 percent. Street is currently looking for full-year 2013 earnings of $6.85 per share on revenues of $31.34 billion.
In late November, 3M completed its acquisition of advanced ceramic products maker Ceradyne, Inc. In early October, the company had agreed to buy Ceradyne for $35 per share in an all-cash deal valued at about $860 million.
In Thursday's regular trading session, MMM is currently trading at $99.54, up $0.05 or 0.05% on a volume of 0.56 million shares. In the past 52-week period, the stock has been trading in a range of $81.99 to $99.70.
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