3M (NYSE: MMM) today reported second-quarter 2019 results.
The St. Paul, Minn.-based manufacturer revealed Sales were down 2.6% to $8.2 billion. Second-quarter 2019 GAAP earnings were $1.92 per share, a decrease of 37.5% versus the second quarter of 2018. During the second quarter of 2019, the company deconsolidated its Venezuelan subsidiary resulting in a non-cash charge of $162 million, or $0.28 per share.
Second-quarter operating income was $1.7 billion with operating margins of 20.8%. Included in these results is a $112-million charge from restructuring and other costs, or a negative 1.4-percentage-point impact to operating margins.
3M also pointed to the acquisition of Acelity Inc., expected to close in this year’s fourth quarter.
3M maintained its full-year 2019 adjusted earnings expectation to be in the range of $9.25 to $9.75 per share. 3M also affirmed its full-year organic local-currency sales growth guidance to be in the range of minus 1% to plus 2%, return on invested capital of 20% to 22%, and free cash flow conversion of 95% to 105%.
Said CEO Mike Roman, "I am encouraged by our company’s progress and performance in the second quarter. Our execution was strong in the face of continued slow growth conditions in key end markets, as we effectively managed costs and improved cash flow.
"Moving ahead we remain focused on continuing to drive operational improvements, investing for the future and delivering for our customers and shareholders."
Shares in 3M leaped $5.92, or 3.3%, mid-morning Thursday to $185.34
