At a meeting with investors and analysts at the company’s global
headquarters today, 3M Chairman, President and Chief Executive Officer
Inge G. Thulin will introduce new five-year financial objectives and
describe how the company is positioned to deliver consistently strong
performance in 2016 and beyond. Thulin will also discuss how 3M’s
playbook – including its three key levers of portfolio management,
investing in innovation, and business transformation – is making 3M even
more relevant to customers, more agile and more competitive.
3M’s new five-year financial objectives – covering 2016 through 2020 –
are:
-
8 to 11 percent growth in earnings per share
-
2 to 5 percent organic local currency sales growth
-
20 percent return on invested capital
-
100 percent free cash flow conversion
“These objectives reflect our confidence in driving efficient growth –
that is, strong, sustainable growth and premium returns – well into the
future,” said Thulin. “Going forward, we remain focused on controlling
the controllable, investing for the long term, and leveraging our
scientific capabilities to create even greater value for our customers
and shareholders.”
At today’s meeting, leaders from across the company will describe how 3M
is enhancing performance and creating value across its portfolio of
businesses. The company also will discuss plans to further strengthen
and streamline its supply chain, as well as an elevated focus on lean
six sigma to improve customer service, drive operational efficiencies
and increase cash flow.
The company also highlighted its newly opened state-of-the-art research
and development facility – The 3M Carlton Science Center – which will
house multiple 3M businesses and up to 700 scientists to foster
innovation and cross-collaboration between businesses and with customers.
3M also reaffirmed its 2016 full-year performance expectations. The
company expects 2016 earnings to be in the range of $8.10 to $8.45 per
share with organic local-currency sales growth of 1 to 3 percent. 3M
also expects free cash flow conversion to be in the range of 95 to 105
percent.
Today’s meeting will be webcast live beginning at 7:30 a.m. CDT and is
scheduled to adjourn at 12:30 p.m. CDT. Investors can access this
meeting via the following:
Forward-Looking Statements
This news release contains
forward-looking information about 3M's financial results and estimates
and business prospects that involve substantial risks and uncertainties.
You can identify these statements by the use of words such as
"anticipate," "estimate," "expect," "aim," "project," "intend," "plan,"
"believe," "will," "should," "could," "target," "forecast" and other
words and terms of similar meaning in connection with any discussion of
future operating or financial performance or business plans or
prospects. Among the factors that could cause actual results to differ
materially are the following: (1) worldwide economic and capital markets
conditions and other factors beyond the Company's control, including
natural and other disasters or climate change affecting the operations
of the Company or its customers and suppliers; (2) the Company's credit
ratings and its cost of capital; (3) competitive conditions and customer
preferences; (4) foreign currency exchange rates and fluctuations in
those rates; (5) the timing and market acceptance of new product
offerings; (6) the availability and cost of purchased components,
compounds, raw materials and energy (including oil and natural gas and
their derivatives) due to shortages, increased demand or supply
interruptions (including those caused by natural and other disasters and
other events); (7) the impact of acquisitions, strategic alliances,
divestitures, and other unusual events resulting from portfolio
management actions and other evolving business strategies, and possible
organizational restructuring; (8) generating fewer productivity
improvements than estimated; (9) unanticipated problems or delays with
the phased implementation of a global enterprise resource planning (ERP)
system, or security breaches and other disruptions to the Company's
information technology infrastructure; (10) financial market risks that
may affect the Company’s funding obligations under defined benefit
pension and postretirement plans; and (11) legal proceedings, including
significant developments that could occur in the legal and regulatory
proceedings described in the Company's Annual Report on Form 10-K for
the year ended Dec. 31, 2015. Changes in such assumptions or factors
could produce significantly different results. A further description of
these factors is located in the Annual Report under "Cautionary Note
Concerning Factors That May Affect Future Results" and "Risk Factors" in
Part I, Items 1 and 1A. The information contained in this news release
is as of the date indicated. The Company assumes no obligation to update
any forward-looking statements contained in this news release as a
result of new information or future events or developments.
About 3M
At 3M, we apply science in collaborative ways to
improve lives daily. With $30 billion in sales, our 90,000 employees
connect with customers all around the world. Learn more about 3M’s
creative solutions to the world’s problems at www.3M.com
or on Twitter @3M or @3MNewsroom.
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