3M Reports Q2 Sales Decline
Protective equipment manufacturer 3M reported a decline in sales year over year despite the high demand for its N95 masks during the COVID-19 pandemic.
In its second-quarter financial release, the company reported $7.2 billion in sales, down 12.2% compared to this quarter last year.
“While our results were significantly impacted by the global economic slowdown, we executed well, managed our costs and delivered another quarter of robust cash flow,” said Mike Roman, 3M Chairman and Chief Executive Officer. “We are taking actions to navigate near-term challenges, while relentlessly innovating for our customers and investing for the future to lead out of the slowdown and continue to deliver long-term value for our shareholders.
“Globally across 3M, we continue to fight the pandemic from all angles and help ensure the safety of our employees, healthcare workers and first-responders, and the public,” Roman continued. “I remain incredibly proud of how our team is leading through these unprecedented times, and I thank all 3Mers for their tireless efforts.”
The company acknowledged that it has been “aggressively responding to the COVID-19 pandemic given its critical role as a provider of personal protective equipment in the U.S. and across the world."
Despite this, total sales declined 0.4% in Health Care, 6.2% in Consumer, 9.2% in Safety and Industrial and 20.9% in Transportation and Electronics.
At the beginning of April, President Donald J. Trump announced a memorandum on the Order Under the Defense Production Act Regarding 3M Company and its production of N95 masks.
The memorandum was issued to the Secretary of Homeland Security and the Administrator of the Federal Emergency Management Agency.
As written in the memorandum, the President has directed that Homeland Security Secretary Chad Wolf, through the Administrator of the Federal Emergency Management Agency, use any and all authorities available under the Act to acquire N95 respirators from 3M Company or any of its appropriate subsidiaries or affiliates.
“We have been working closely with the Administration to do exactly that, and we appreciate the authorities in the DPA that provide a framework for us to expand even further the work we are doing in response to the global pandemic crisis,” 3M said at the time. “We look forward to working with FEMA to implement yesterday’s order.”