01—Abstract
Summary
Summary of the 10-K filed February 13, 2014. Cited figures are marked; the original filing is the authoritative source.
3M Company's 2013 10-K report highlights a year of solid growth, with total sales reaching $30.9 billiona, 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 billionb, 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 billionc 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.
02—Key points
Key Highlights
- Total sales grew by 3.2% to $30.9 billion, with organic local-currency sales increasing by 3.4%.
- Net income attributable to 3M increased by 6.3% to $4.66 billion, resulting in diluted EPS of $6.72.
- Operating income margin remained strong at 21.6%, showing resilience despite minor increases in SG&A and R&D expenses.
- The company returned substantial capital to shareholders, repurchasing $5.21 billion in stock and increasing dividends by 34.6% year-over-year.
- Investments in R&D increased by 4.9% to $1.72 billion, underscoring a continued focus on innovation.
- The Industrial segment led sales growth with a 6.5% increase, reflecting strength in automotive, aerospace, and advanced materials.
- The company maintained a strong balance sheet with a debt-to-total-capital ratio of 25% and strong credit ratings (AA-/Aa2).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, 3M Co kept $0.15.
- Revenue$30.87B100.0%
- Cost of revenue−$16.11B52.2%
- Gross profit$14.77B47.8%
- Operating costs−$8.10B26.2%
- Operating income$6.67B21.6%
- Interest, other & tax−$2.01B6.5%
- Net income$4.66B15.1%
Where FY2013 revenue went
$30.87B- Cost of revenue: $16.11B, 52% of revenue
- SG&A: $6.38B, 21% of revenue
- Net income: $4.66B, 15% of revenue
- R&D: $1.15B, 3.7% of revenue
- Other operating costs: $565.0M, 1.8% of revenue
- Interest, other & tax: $2.01B, 6.5% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 13, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $30.87B$29.90B | +3.2% |
| Cost of Revenue | $16.11B$15.69B | +2.7% |
| Gross Profit | $14.77B$14.22B | +3.8% |
| R&D Expenses | $1.15B$1.08B | +6.6% |
| SG&A Expenses | $6.38B$6.10B | +4.6% |
| Operating Expenses | $24.20B$23.42B | +3.3% |
| Operating Income | $6.67B$6.48B | +2.8% |
| Net Income | $4.66B$4.44B | +4.8% |
| EPS (Basic) | $6.83$6.40 | +6.7% |
| EPS (Diluted) | $6.72$6.32 | +6.3% |
| Shares Outstanding (Basic) | 681.90M693.90M | −1.7% |
| Shares Outstanding (Diluted) | 693.60M703.30M | −1.4% |
05—Questions
Frequently Asked Questions
What was 3M's overall financial performance in 2013?
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%.
How did 3M return capital to shareholders in 2013?
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.
Which business segments performed the strongest in terms of sales growth?
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.
What were the key strategic investments or expenditures made by 3M in 2013?
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.
06—Continue