3M Company sales and net income surged in the second quarter, with strong performances reported for all businesses and geographic regions, the company said.
Both the Industrial and Transportation segment and the Safety, Security and Protection Services segment recorded double-digit growth.
The company reported record second-quarter earnings of $1.54 per share, as net income totaled $1.1 billion, compared to $792 million for the second quarter of 2009. Sales were $6.7 billion, compared to $5.7 million for the same period a year earlier. Sales have returned to levels recorded in the second quarter of 2008, the company said.
For the first half of 2010, sales were $13 billion, a 17% increase from $10.8 billion for the first half of 2009. First-half net income was $2.1 billion, up sharply from $1.3 billion from the prior-year period.
On a geographic basis, sales growth was strongest in emerging economies, with a 38% sales increase versus the second quarter of 2009, 3M said.
For the company’s Industrial and Transportation segment, second-quarter sales were $2.2 billion, a 23% increase from $1.8 billion in the second quarter of 2009. The segment’s operating income for the quarter was $476 million, up 66% from $287 million for the prior-year period. For the first half, Industrial and Transportation sales were $4.2 billion, compared to $3.4 billion in 2009. Segment operating income was $930 million, up sharply from $462 million in the prior-year period. Posting sizeable sales gains were renewable energy, up 71%; automotive OEM, up 45%; abrasives, with a 28% increase; and industrial adhesives and tapes, up 22%.
The Industrial and Transportation segment’s diverse product portfolio includes “Fusion Bonded” epoxy powders and liquid resins for corrosion protection of steel pipelines and metals used in the oil, gas and construction markets. The segment also makes fire-protection products, worker-safety equipment, protective tapes, and specialty coatings additives.
The company’s Safety, Security and Protection Services segment reported second-quarter sales of $842 million, up 10% from $769 million for the second quarter of 2009. Segment operating income was $197 million, a 9% increase from 2009. For the first half, the segment’s sales were $1.7 billion, a 21% increase from $1.4 billion in 2009. First-half operating income was $378 million, up 24% from $305 million in 2009.
The company said double-digit sales increases were turned in by the Safety, Security and Protection Services segment’s security systems, roofing granules and building and commercial services businesses, with single-digit sales growth in the personal protective equipment business.
Geographically, the segment’s sales growth was broad-based, with double-digit sales gains in Canada, Asia Pacific, Latin America, and the U.S.
The Safety, Security and Protection Services segment product portfolio includes protective coatings, worker-safety equipment, and a range of other products.
Chairman, president and CEO George W. Buckley said the company’s growth strategy “continues to gain momentum as we again delivered strong top-line growth and outstanding leverage to the bottom line.” He said the results “reaffirm the company’s long-term strategy of accelerating investment in higher-growth opportunities.”
The company also increased its full-year 2010 performance expectations, and said organic sales volumes are expected to expand 13% to 15%, versus a prior expected range of 10% to 12%.
The company also increased its full-year 2010 performance expectations and said organic sales volumes were expected to expand 13% to 15%, versus a prior expected range of 10% to 12%.