3M says its sales were 6% stronger on a year over year basis in July

3M says its sales were 6% stronger on a year over year basis in July
Written by:
Wajeeh Khan
13th August, 15:27
  • 3M says its sales were 6% stronger on a year over year basis in July.
  • The U.S. conglomerate's sales in July declined in only one of its segments.
  • The American multinational laid off another 1,700 jobs in the fiscal Q2.

3M Co. (NYSE: MMM) said on Thursday that its sales in July saw a significant improvement after keeping dovish for months due to the Coronavirus pandemic that has so far infected more than 5 million people in the United States and caused over 169 thousand deaths.

Shares of the company were reported less than 1% up on Thursday in premarket trading and jumped under 1% again on market open.

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At £126.80 per share, 3M Co. is currently trading roughly 40% up as compared to its year to date low of £90 per share in late March when the ongoing health crisis pushed it into closing factories temporarily. Choosing a stockbroker to invest online can be scary. Here’s a comparison of the top stockbrokers to make the decision easier for you.

3M’s sales in July declined in only one of its segments

On a year over year basis, 3M said its sales that it valued at £2.14 billion in July were 6% stronger. The company said that its healthcare segment performed the best last month, recording a 29% growth in sales.

It was followed by the consumer segment that saw a 9% increase in sales last month. Lastly, 3M’s sales from safety and industrial segment climbed at comparatively the slowest pace of 6%.

The American multinational conglomerate highlighted on Thursday that its transportation and electronics segment was the only one that remained in the red zone in July posting a decline of 7% in sales.  

The Saint Paul-based company had published its detailed financial report in late July that had revealed a 12.2% decline in sales in its fiscal second quarter that were also weaker than what the experts had forecast.

3M laid off another 1,700 jobs in the second quarter

The maker of industrial, personal safety, and consumer products cited the Coronavirus uncertainty on Thursday as it refrained from giving its financial guidance for the full financial year. 3M, however, lauded its monthly report on sales that it said contributes to ensuring transparency for investors.

3M had expressed plans of slashing 1,500 jobs in January in a bit to minimise costs. Seeing an even broader need to focus on cost-savings due to the Coronavirus pandemic, the company expanded on job cuts and laid off another 1,700 jobs in the second quarter.

At the time of writing, 3M Company is valued at £72.80 billion and has a price to earnings ratio of 18.76.

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