(RTTNews.com) - 3M Co. ( MMM ) said Thursday that its Chief Executive officer Mike Roman will lay out new five-year financial objectives and introduce his priorities for the future at the company's Investor Day in St. Paul today.
3M noted that the four priorities - focused around Portfolio, Innovation, Transformation, and People and Culture - will position the company for long-term growth and value creation.
Roman will discuss how 3M's transformation initiative will enable greater productivity and continued margin expansion. The company will also emphasize how its science and technologies are being applied to high-growth areas such as automotive electrification, advanced wound care, connected safety, biopharma filtration, and data centers.
3M said it's new five-year financial objectives that cover the period from 2019 through 2023 are: 3 percent to 5 percent organic local currency sales growth, 8 percent to 11 percent growth in earnings per share, 20 percent return on invested capital, and 100 percent free cash flow conversion.
For fiscal 2019, 3M forecasts total sales growth of 1 percent to 3 percent, earnings per share of $10.60 to $11.05, 20 percent to 25 percent earnings per share growth on a GAAP basis, and 7 percent to 11 percent earnings per share growth, adjusting for certain 2018 items.
For fiscal 2019, 3M also projects 22 percent to 25 percent return on invested capital and 95 percent to 105 percent free cash flow conversion - based on operating cash flow of $7.9 billion to $8.5 billion.
Further, 3M said that in 2019, it plans to invest $2 billion in research and development, or about 6 percent of sales, along with $1.7 billion to $2 billion in capital expenditures. The company also plans gross share repurchases in the range of $2 billion to $4 billion for the year.
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