3M Co (MMM) Q2 Earnings Report Review

3M Co (NYSE:MMM) humble beginnings can be traced back to 1902 when it commenced operations as a small mining venture in Northern Minnesota. Back then, it was engaged in mining mineral deposits for grinding wheel abrasives. In 1905, the company relocated to Duluth to manufacture sandpaper products. 3M diversified over the years, adding several new products to its portfolio. Today, the company’s thousands of products are used in households, educational institutes, healthcare facilities, among other industries.

The company recently announced its second-quarter profit and sales above expectations. 3M reported earnings of $2.59 per share for the three months ended June 30, compared to $2.25 per share in the comparable period of 2020. On an adjusted basis, earnings rose to $2.59 per share, easily topping the consensus forecast of $2.28 per share.

Revenue for the quarter jumped 24.7 percent on a year-over-year basis to $8.9 billion, beating analysts’ average estimate of $8.525 billion. If we look at the performance of key segments, revenue from the safety and industrial business rose 22.4 percent to $3.3 billion, transportation and electronics revenue climbed 28.1 percent to $2.5 billion, while healthcare revenue increased 24.9 percent to $2.3 billion. In comparison, consumer revenue soared 20.4 percent to $1.5 billion.

Commenting on the results, CEO Mike Roman said, “3M delivered strong performance in the second quarter, once again posting organic growth across all business groups and geographic areas, along with increased earnings and robust cash flow.”

3M also raised its earnings guidance for the full year. The company now expects earnings in the range of $9.70 per share to $10.10 per share, up from its previous outlook between $9.20 per share and $9.70 per share.

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