Upcoming AWS Coverage on Dover Corp. Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 27, 2017 / Active Wall St. announces its post-earnings coverage on 3M Co. (NYSE: MMM). The Company disclosed its fourth quarter and fiscal 2016 results on January 24, 2017. The maker of post-it notes and industrial goods maker's sales increased marginally. Register with us now for your free membership at:

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One of 3M Co.'s competitors within the Diversified Machinery space, Dover Corp. (NYSE: DOV), reported its Q4 2016 earnings on Thursday, January 26, 2017. AWS will be initiating a research report on Dover in the coming days.

Today, AWS is promoting its earnings coverage on MMM; touching on DOV. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=MMM

http://www.activewallst.com/registration-3/?symbol=DOV

Earnings Reviewed

For the three months ended December 31, 2016, 3M's sales increased 0.4% on a y-o-y basis to $7.329 billion. On organic local-currency basis, the Company's sales increased 1.6% while divestitures reduced sales by 0.4% and foreign currency translation impacted sales by 0.8%. For FY16, 3M's sales dropped 0.5% to $30.1 billion and organic local-currency sales declined 0.1%. Acquisitions, net of divestitures, increased sales by 0.8% which was offset by foreign currency impact of 1.2%.

During Q4 2016, 3M generated operating income of $1.7 billion, while operating income margins totaled 22.7%, up 220 basis points on a y-o-y basis. For FY16, 3M's operating income margins were 24.0%, up 110 basis points versus 2015.

For Q4 2016, 3M's net income was $1.2 billion, or $1.88 per share, an increase of 13.3% versus Q4 2015. The Company's FY16 earnings were $8.16 per share, an increase of 7.7 %. Analysts were estimating EPS of $1.87 and sales of $7.33 billion.

Segment Results

Industrial: During Q4 2016, 3M's Industrial segment's sales of $2.5 billion were up 3.0% in US dollars. Organic local-currency sales increased 4.6%, foreign currency translation reduced sales by 0.8%, while divestitures reduced sales by an additional 0.8%. The segment's sales growth was led by automotive OEM, advanced materials, separation and purification, and automotive aftermarket, although aerospace declined on a y-o-y basis ear. Sales grew in all geographic areas, led by Latin America/Canada, the US, and Asia/Pacific. The segment's Q4 2016, operating income was $553 million, an increase of 16.8% on y-o-y basis and operating margin was 21.9%.

Safety and Graphics: For Q4 2016, 3M's Safety and Graphics segment sales grew 0.6% in US Dollars to $1.3 billion. Safety and Graphics' organic local-currency sales increased 2.2%, while foreign currency translation reduced sales by 1.0% and divestitures decreased sales by 0.6%. Sales increased in roofing granules, personal safety, and commercial solutions, and declined in traffic safety and security. Sales grew in Asia/Pacific, Latin America/Canada, and the US, and declined in EMEA. Operating income was $270 million, down 4.1% on a y-o-y basis and operating margin was 20.8%.

Health Care: 3M's Health Care segment generated sales of $1.4 billion in Q4 2016, down 0.1% in US dollars. The segment's organic local-currency sales increased 1.3% and foreign currency translation reduced sales by 1.4%. Sales growth was led by food safety, critical and chronic care, drug delivery systems, and infection prevention, while it offset by decline in oral care and health information systems. Sales grew in Latin America/Canada, Asia/Pacific, and the US, but saw a decline in EMEA. The segment's operating income was $410 million in the reported quarter, down 7.3% on a y-o-y basis, while operating margin of 29.8%.

For Q4 2016, 3M's Electronics and Energy sales totaled $1.2 billion, down 1.0% in US dollars. On an organic local currency basis, the segments sales declined 0.6%, while currency impact was a negative 0.4%. The divisions' electronics-related sales were flat, with growth in electronics materials solutions offset by a decline in display materials and systems. The segment's energy-related sales declined 2%, with growth in telecom more than offset by declines in electrical markets and renewable energy. Sales grew in Latin America/Canada, were flat in the US, and declined in Asia/Pacific and EMEA. Electronics and Energy's operating income surged 61.3% on a y-o-y basis to $326 million in the reported quarter, while operating margin totaled 26.9%.

Consumer: During Q4 2016, 3M's Consumer segment sales declined 0.7% to $1.1 billion. Sales grew in home improvement, consumer health care, and home care, but declined in stationery and office. The segment's sales registered growth in Asia/Pacific, were flat in the US, and declined in Latin America/Canada and EMEA. Consumer segment's operating income was down 10.5% on a y-o-y basis to $228 million and operating margin came in at 20.9%.

Balance Sheet

For Q4 2016, 3M's operating cash flow was $2.2 billion, contributing to conversion of 154% of net income to free cash flow. The Company's operating cash flow was $6.7 billion for FY16, contributing to conversion of 104% of net income to free cash flow for the year. During Q4 2016, 3M paid $664 million in cash dividends to shareholders and repurchased $924 million of its own shares. For FY16, 3M paid $2.7 billion in cash dividends to shareholders and repurchased $3.7 billion of its own shares.

FY17 Outlook

3M affirmed its FY17 performance expectations. The Company expects 2017 earnings to be in the range of $8.45 to $8.80 per share with organic local-currency sales growth of 1% to 3%. 3M also expects free cash flow conversion to be in the range of 95% to 105%.

Stock Performance

On January 26, 2017, 3M Co.'s share price finished the trading session at $176.82, slightly up by 0.05%. A total volume of 2.23 million shares exchanged hands, which was higher than the 3 months average volume of 1.94 million shares. The stock has advanced 7.05% and 24.74% in the last three months and past twelve months, respectively. The stock is trading at a PE ratio of 22.27 and has a dividend yield of 2.51%.

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SOURCE: Active Wall Street