3M Introduces New Five-Year Financial Objectives; Reaffirms Full-Year 2016 Outlook
OREANDA-NEWS. 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:
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.