Diversified technology company
) recently updated its five-year plan and provided its 2014
outlook. 3M continues to deliver sustainable increases in sales,
earnings and free cash flow, benefiting from its long-term
strategy of accelerating investment in higher growth programs.
Going forward, 3M expects 9% to 11% growth in earnings per share,
4% to 6% organic revenue growth, 20% return on invested capital
and approximately 100% free cash flow conversion in the period
from 2013 -2017
Despite a challenging macroeconomic environment, 3M expects
earnings in 2014 to be in the range of $7.30 to $7.55 per share
with organic local currency sales growth of 3% to 6%. The company
expects that free cash flow conversion will be in the range of
90% to 100%. The company remains focused on inventing new
products as it enjoys a competitive advantage worldwide.
3M also increased its quarterly dividend by 35% for the first
quarter of 2014. The company expects its 2013-2017 share
repurchases to be in the range of $17 billion to $22 billion, up
from its previous guidance of $7.5 billion to $15 billion. The
company expects to further leverage its balance sheet and aims to
provide increasing returns to shareholders.
Portfolio management, investment in innovation and business
transformation are the three key levers on which the company
intends to focus moving forward. 3M will also continue to invest
in capital expenditures and research and development to support
organic growth as it aims a capital structure strategy and
increased capital deployment. 3M expects to invest between $5
billion and $10 billion for acquisitions through 2017.
3M, together with its subsidiaries, operates as a diversified
technology company with manufacturing operations spread over 70
countries. The company aims to deliver innovative security
solutions to businesses and governments worldwide, thus
maintaining the security of people and documents.
3M currently has a Zacks Rank #3 (Hold). Better-ranked stocks
in the industry include
Hutchison Whampoa Ltd
Raven Industries Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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