3M Co. (MMM) Sees FY17 EPS of $8.45-$8.80

Speaking today at the company’s annual outlook meeting in New York City, 3M (NYSE: MMM) Chairman, President and CEO Inge Thulin will outline to the financial community why 3M is well-positioned for success in 2017 and beyond. Thulin will provide an update on the company’s execution of the 3M playbook, and emphasize ongoing investments to drive efficient growth and build strength-on-strength across the enterprise.

“Over the last several years we have taken significant actions to strengthen our technology capabilities, improve our portfolio and cost structure, and make us even more relevant to our customers,” Thulin said. “Moving into 2017, we are continuing to increase investments in targeted growth opportunities, which will help us deliver another year of efficient growth and strong cash flow. Equally important, our enterprise is well-positioned for long-term success, and we will capitalize as growth conditions improve.”

3M’s execution of its playbook – which includes three key levers of Portfolio Management, Investing in Innovation and Business Transformation – is moving the company toward an even more efficient and customer-focused business model. 3M has strengthened and prioritized its portfolio by realigning from 40 businesses to 25, while also making strategic acquisitions and divestitures; increased investments in research and development close to 6 percent of sales; and continued to make good progress on Business Transformation, which is enabling 3M to serve customers with even greater agility and efficiency.

At today’s meeting, Chief Financial Officer Nick Gangestad will announce the company’s 2017 expectations and capital deployment plans.

For the full-year 2017, the company expects:

• Earnings per share of $8.45 to $8.80, an increase of 4 to 8 percent (cons is $8.64)
• Organic local-currency sales growth of 1 to 3 percent
• Free cash flow conversion of 95 to 105 percent (assumes operating cash flow of $6.1 to $7.1 billion). Refer to section entitled “Supplemental Financial Information, Non-GAAP Measures” for more detail.

In 2017 3M plans to invest approximately $1.8 billion in research and development to support organic growth, and enhance the company’s strong margins and return on invested capital. 3M will also discuss its Business Transformation lever, which is already creating value for the company and its customers. By 2020, this initiative will deliver $500 to $700 million in annual operational savings, and an additional $500 million reduction in working capital.

Today’s meeting will be webcast live beginning at 8:00 a.m. EST (7:00 a.m. CST) and is scheduled to end at 12:00 p.m. EST (11:00 a.m. CST). Investors can access this meeting via the following:

• Live webcast at http://investors.3M.com
• Webcast replay:Go to 3M’s Investor Relations website at http://investors.3M.com and click on “3M 2017 Outlook Meeting.”

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