10-KPeriod: FY2013

3M CO Annual Report, Year Ended Dec 31, 2013

Filed February 13, 2014For Securities:MMM

Summary

3M Company's 2013 10-K report highlights a year of solid growth, with total sales reaching $30.9 billion, a 3.2% increase over 2012, driven by broad-based organic local-currency sales growth across its five business segments. The company demonstrated robust profitability, with net income attributable to 3M increasing by 6.3% to $4.66 billion, translating to diluted earnings per share of $6.72. This performance was supported by effective cost management, favorable raw material costs, and strategic price adjustments. 3M continued its commitment to shareholder returns through significant share repurchases totaling $5.21 billion and a 34.6% increase in its quarterly dividend, marking its 56th consecutive year of dividend increases. The company also strategically invested in its future through research and development spending, which increased by 4.9% to $1.72 billion, and through acquisitions that bolstered its Industrial and Health Care segments.

Financial Highlights

55 data points
Beta

Revenue

$30.87B

47.8% Gross Margin

Net Income

$4.66B

15.1% Net Margin

EPS (Diluted)

$6.72

Total Assets

$33.30B

Cash & Equivalents

$2.58B

Free Cash Flow

$4.15B

Financial Statements
Beta
Revenue$30.87B
Cost of Revenue$16.11B
Gross Profit$14.77B
R&D Expenses$1.15B
SG&A Expenses$6.38B
Operating Expenses$24.20B
Operating Income$6.67B
Net Income$4.66B
EPS (Basic)$6.83
EPS (Diluted)$6.72
Shares Outstanding (Basic)681.90M
Shares Outstanding (Diluted)693.60M

Key Highlights

  • 1Total sales grew by 3.2% to $30.9 billion, with organic local-currency sales increasing by 3.4%.
  • 2Net income attributable to 3M increased by 6.3% to $4.66 billion, resulting in diluted EPS of $6.72.
  • 3Operating income margin remained strong at 21.6%, showing resilience despite minor increases in SG&A and R&D expenses.
  • 4The company returned substantial capital to shareholders, repurchasing $5.21 billion in stock and increasing dividends by 34.6% year-over-year.
  • 5Investments in R&D increased by 4.9% to $1.72 billion, underscoring a continued focus on innovation.
  • 6The Industrial segment led sales growth with a 6.5% increase, reflecting strength in automotive, aerospace, and advanced materials.
  • 7The company maintained a strong balance sheet with a debt-to-total-capital ratio of 25% and strong credit ratings (AA-/Aa2).

Frequently Asked Questions

In 2013, 3M reported total sales of $30.9 billion, a 3.2% increase from 2012, driven by 3.4% organic local-currency sales growth. Net income attributable to 3M rose by 6.3% to $4.66 billion, or $6.72 per diluted share. The company maintained healthy operating margins at 21.6%.

3M demonstrated a strong commitment to shareholder returns by repurchasing $5.21 billion of its common stock and increasing its quarterly dividend by 34.6% to $0.855 per share. This marked the 56th consecutive year of dividend increases.

The Industrial segment was the strongest performer, with sales increasing by 6.5% driven by growth in automotive OEM, aerospace, and advanced materials. Health Care and Safety and Graphics also showed solid sales growth of 3.8% and 3.4%, respectively.

3M continued to invest in innovation, increasing its Research, Development, and Related Expenses by 4.9% to $1.72 billion. The company also made strategic acquisitions, notably in the Industrial (Ceradyne, Inc.) and Health Care (CodeRyte, Inc.) segments, contributing to overall sales growth.