|Bid||156.31 x 800|
|Ask||156.80 x 800|
|Day's range||153.05 - 156.76|
|52-week range||114.04 - 187.72|
|Beta (5Y monthly)||1.00|
|PE ratio (TTM)||18.36|
|Earnings date||28 Jul 2020|
|Forward dividend & yield||5.88 (3.75%)|
|Ex-dividend date||21 May 2020|
|1y target est||152.80|
3M (MMM) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
(Bloomberg Opinion) -- After a prolonged shutdown, Ford Motor Co. officially resumed production at its North American factories this week. It hasn’t been as smooth a process as the company might have hoped: Ford had to temporarily close two critical facilities this week to allow for a deep cleaning after workers tested positive for the coronavirus. An Explorer SUV plant in Chicago was closed a second time after an employee at a nearby supplier facility tested positive for the virus, causing a parts shortage.This is the reality of manufacturing for the time being as companies fret about worker safety and the legal and reputational risks of not doing enough to protect employees. Unlike Ford, whose products fall into a category of consumer spending that’s become even more discretionary amid the pandemic, wide swaths of the industrial sector were deemed essential and allowed to remain operational. Those companies, too, have had their share of growing pains as they adjust to a new way of working.Boeing Co. temporarily closed its factories in the Puget Sound area in March after a worker died of the coronavirus and later briefly shuttered work at its 787 plant in South Carolina. CBS Minnesota reported earlier this month that a Honeywell International Inc. facility in Minneapolis had closed after a worker tested positive. Whirlpool Corp. closed its Amana, Iowa, refrigerator plant at least twice after employees tested positive for the virus, according to the Gazette local paper. Deere & Co. and Altria Group Inc.’s Philip Morris USA are among the many others that have had to close plants on a limited basis to avoid outbreaks among workers. Lockheed Martin Corp., meanwhile, said this week it will temporarily slow production of the F-35 fighter jet because of delays at suppliers. It’s a lot harder, though, to bring factories back to life than it is to just figure it out as you go along. Ford may be a manufacturer, but because it’s one of the few to have experienced an extended lockdown, it’s arguably a better benchmark for the non-industrial economy. You better believe that office-based companies that have sent most of their workers home are keeping a close eye on how the likes of Ford fare in flipping the switch back on. Seeing the automaker’s setbacks this week, companies that can operate without their employees clustered in the same place may be less keen to rush back. They’re getting a more continuous stream of work out of their employees now than they would if they had to hit the pause button and clear out the office every few weeks. And the mixed messages from the White House aren't helpful: President Donald Trump is due to visit a Ford factory in Michigan that’s been converted to ventilator production and has been wishy-washy on whether he will adhere to the company’s face-mask requirements. Already, American Express Co. CEO Steve Squeri and Visa Inc. CEO Al Kelly said this week that most of their employees would work from home for the rest of the year. Some 28% of employers recently surveyed by Challenger, Gray & Christmas said they would make work-from-home arrangements permanent for at least some employees. Cryptocurrency exchange Coinbase and social media site Twitter Inc. are among those who have publicly said remote working will be their indefinite default option. Facebook Inc. said Thursday it would follow suit and move to a more permanent remote workforce.At the end of the day, manufacturing or non-manufacturing, it's all interconnected. How permanent this shift to work from home will be is debatable, but if companies end up needing less office space, by default that means fewer HVAC systems, commercial lighting, fire and security products or even 3M Co.’s Post-it notes. And if workers aren’t going to be commuting, do they still need to buy cars from Ford? There's a lot riding on getting reopening right. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Rising revenues from its healthcare segment weren't enough to make up for the pandemic-related sales declines elsewhere in the industrial conglomerate
3M (NYSE: MMM) today reported sales information for the month of April 2020. The company withdrew its full-year 2020 outlook on April 28, 2020, due to the uncertain impact of the COVID-19 pandemic, and committed to provide monthly updates until it is better able to forecast future performance.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.Farmers in Cameron Highlands, a cradle of Malaysia’s agricultural industry, dumped hundreds of tons of produce in March after Covid-19 lockdowns shuttered wholesale markets and restaurants across the nation. They also gave Alibaba a chance to crack a difficult arena.Lazada Group SA, the Southeast Asian subsidiary of Alibaba Group Holding Ltd., opened a virtual store to link farmers and homebound Malaysians. The uptake surprised even the e-commerce giant: consumers bought an average of 1.5 tons of cabbages, carrots and spinach each day. On the fourth day, 3.5 tons of veggies were sold in less than half an hour. By the third week, about 70 tons had been delivered from farms to doorsteps across the country.Fresh groceries -- now one of the top three categories on Lazada Malaysia -- weren’t even an option there three months ago. Before the novel coronavirus, Lazada had dedicated grocery arms only in Singapore, Thailand and the Philippines; after the outbreak, it’s expanded to Malaysia, Vietnam and Indonesia. It’s keen to maintain that momentum, backed by 30 fulfillment centers across 17 cities in the region.“Covid-19 is a catalyst of digital transformation in Southeast Asia,” Lazada Group Chief Executive Officer Pierre Poignant said in an interview. “When consumers build a habit, it doesn’t easily go away. E-commerce will become a way of life.”Read more: Southeast Asia’s Internet Economy to Top $100 Billion This YearDemand for fresh groceries has surged globally, but the spike in Malaysia opened a window in particular for China’s largest online commerce company into a lucrative market after years of building one of the region’s largest delivery networks. Since March, more agricultural entrepreneurs, fisheries and local businesses have started to pivot brick-and-mortar business to e-commerce, according to Lazada Malaysia Chief Operating Officer Shah Suriye Rubhen. The festive period of Ramadan, in a country where more than half the population is Muslim, has also galvanized demand and farmers have responded by increasing their assortment of goods on offer.“Local SMEs are realizing that digitizing their business is the way forward to remain sustainable in the long-term, diversify their revenue stream, and market to the increasingly growing internet economy,” Shah said.Alibaba’s unit may have scored in Cameron Highlands, but the wider Southeast Asian market remains heavily contested.Read more: New Alibaba Chief Explains Why He Wants to Kill His Own BusinessLazada, started in 2012 by Rocket Internet before Alibaba eventually bought full control of the company, was the first e-commerce outfit to serve six countries in Southeast Asia. But its fiercest rival Shopee, a unit of Singapore’s Sea Ltd., has expanded aggressively in the past year and overtaken Lazada as the most visited website in 2019, according to research firm iPrice Group.In Indonesia, the largest and most promising market in the region, Alibaba-backed Tokopedia ranks as the top e-commerce company based on web traffic, followed by Shopee, Bukalapak and Lazada. Blibli is the online grocery leader, while “Shopee, Tokopedia and Lazada are playing fast catch-up,” said Roshan Raj, a Singapore-based partner at research firm RedSeer Consulting.It’s not just the e-commerce giants -- the resurgence in online grocery has attracted new entrants from adjacent industries. Singapore’s Qoo10 Pte was particularly swift to act when the government ordered bubble tea shops to temporarily shut along with other non-essential services, offering DIY bubble tea kits. Even meal delivery firm Foodpanda started grocery delivery.At home in Singapore, Lazada’s Lazmall, where brands sell directly to consumers, has recently attracted big names like Under Armour Inc. in Singapore and Thailand, Starbucks Corp. and 3M Co. in Indonesia and department store chain Robinsons, which is shutting one of its three Singapore outlets in August.“There are brands that I would not have imagined would come to e-commerce,” Poignant said.The 41-year-old Frenchman, a co-founder who took the helm last year, says Lazada is interested in grocery deals, including acquisitions and joint ventures, in Southeast Asia. “We are very open to that,” he said, adding the company isn’t in concrete discussions at the moment. His firm last month teamed up with Indonesia’s Rumah Sayur Group to source vegetables from 2,500 farmers in West Java.Lazada acquired Singaporean e-grocer RedMart in 2016. It struggled to meet demand and had to temporarily suspend new grocery orders in April to make adjustments. Poignant said changes made to RedMart helped the company serve 50% more customers each day a month later.“Southeast Asia’s e-commerce market is likely to move from a subsidy game to a quality game,” said Lai Chang Wen, CEO of Singapore-based Ninja Van, which helps e-commerce clients deliver more than a million packages daily in the region. “This shift will be pivotal and have a lasting impact.”Read more: Alibaba Bets on Frenchman to Lead High-Stakes Southeast Asia ExpansionPoignant argues Alibaba’s technologies will help differentiate Lazada, starting with live-streaming. He said Lazada is the only player in Southeast Asia that allows consumers to immediately buy items they see on a stream. By the end of June, Lazada plans to host more than 1,000 daily sessions, up from 4,000 per week now. In April, some 7,000 new live stream accounts were created, up 70% from the pre-pandemic era.Alibaba’s artificial intelligence technology is another asset. Lazada has more than 100 people working on personalizing its experience, part of Lazada’s 9,000-strong workforce across six countries.For the Chinese e-commerce behemoth, Lazada is the single most important piece of its globalization strategy. It aims to serve 300 million Southeast Asians by 2030, up from 65 million now, according to Poignant.Underscoring that ambition, Alibaba last week struck a deal to buy half of Singapore’s AXA Tower, valued at S$1.68 billion ($1.2 billion). Poignant says the 50-story landmark, already home to 3,000 Lazada staff, has very good feng shui. The cylindrical structure was inspired by a stack of coins and originally built as the country’s Treasury Building in 1986. Prime Minister Lee Hsien Loong once had an office in the building, Poignant added.“Southeast Asia is an absolutely critical market for Alibaba,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The 3M Board of Directors (NYSE:MMM) today declared a dividend on the company’s common stock of $1.47 per share for the second quarter of 2020. The dividend is payable June 12, 2020, to shareholders of record at the close of business on May 22, 2020.
3M has been awarded two contracts through the U.S. Department of Defense to further expand American production of N95 respirators.
Newly designed powered air-purifying respirators (PAPRs), developed by Ford in close collaboration with 3M, are on the way to health care workers fighting COVID-19.
With the U.S. importing mass quantities of personal protective equipment, medical gear, COVID-19 tests, and more, a lot of substandard and outright counterfeit gear is landing on our shores.
Multi-industry industrial 3M Company (NYSE: MMM) represents one of the most interesting investment options in its sector. Earlier in the year, the market wasn't too impressed with 3M's fourth-quarter 2019 results. First, if you exclude the restructuring charges 3M would have hit the high point of its first-quarter guidance range.
3M today announced that it has completed the sale of substantially all of its drug delivery business to an affiliate of Altaris Capital Partners, LLC., for approximately $650 million in total consideration, including cash, an interest-bearing security, and a 17 percent noncontrolling interest in the new company, Kindeva Drug Delivery, that will operate the business.
3M has filed five legal actions in federal courts in Florida, Wisconsin and Indiana as part of its global effort to protect the public and combat fraud and counterfeiting. The lawsuits involve separate defendants who attempted to target government officials with fraudulent offers to sell N95 respirators—in one case claiming to have up to five billion respirators—at inflated prices, all while falsely affiliating themselves with 3M.
In this article we are going to estimate the intrinsic value of 3M Company (NYSE:MMM) by taking the foreast future...
(Bloomberg Opinion) -- Tuesday was a jam-packed day for earnings across all sectors. In the industrial landscape, I paid closest attention to 3M Co., Caterpillar Inc. and United Parcel Service Inc., each a bellwether in its own right. You can find the specifics on earnings numbers in the companies’ news releases here, here and here, but in this time of unprecedented volatility, what CEOs are saying about how they are running their businesses is more telling. Here are my top takeaways:3M: Like many companies, 3M has suspended its 2020 guidance given the unpredictable nature of the coronavirus outbreak and rolling economic shutdowns, but in an effort to provide more transparency, the maker of Post-it notes is now going to provide monthly sales updates — broken down by geography and business segment — for the foreseeable future. This follows Emerson Electric Co.’s marathon two-hour-plus earnings call last week that featured presentations by not only the CEO and CFO but also the heads of its main business divisions. It’s nice to see companies setting the bar high on disclosures during this period of upheaval; hopefully others follow suit. The second quarter is expected to bring the worst of the virus impact, and 3M is cutting $350 million to $400 million of costs in the period to adjust to lower demand. Notably, however, much of that involves discretionary spending on things like travel, external services and advertising, rather than cuts to payroll, which 3M says it’s trying to minimize. It’s using furloughs, but they’re paid leaves, and in other cases, employees are being asked to take vacation. Bear in mind that 3M had announced a restructuring plan in January, separate from the coronavirus, that would see it eliminate some 1,500 jobs, so it’s hardly a corporate saint. But given its sales of N95 respirators, you’d be hard-pressed to find a company that better understands the toll the virus is taking, and 3M seems to legitimately want to to do the right thing by its workforce. Like others in the industrial sector, the company also appears wary of cutting too deep and being unprepared for an eventual recovery. 3M is clearly conscious of its image after having its name dragged through the mud by President Donald Trump and billionaire Mark Cuban over production and sales of N95 respirators. The company devoted an entire slide in its earnings presentation to the topic. 3M has already doubled global N95 output to 100 million per month and is investing in capacity to double that yet again; it’s directed 90% of production to health-care workers, with the remainder going to other critical industries such as food production; and the company has cut loose some distributors who acted “unethically” and is pursuing numerous lawsuits amid allegations of price gouging. The company also made a point of highlighting its 76 plants and distribution centers across the U.S. in an apparent nod toward calls for a revival of America’s manufacturing might. “3M has never left our home country,” CEO Michael Roman said on the call. CATERPILLAR : The maker of bulldozers and backhoes is also holding off on sweeping job cuts, and it made an interesting argument as to why that’s the case. Caterpillar held headcount as well as administrative, manufacturing and research spending relatively flat from 2016 to 2019, even as sales increased some 40%. That means there’s less to cut when a downturn hits, CEO Jim Umpleby said on a call to discuss the company’s first-quarter results. It also means Caterpillar doesn’t have to use up cash to pay out large amounts of severance, and “cash is obviously king in this environment,” Umpleby said. So the overall effect is that margins and cash flow will be higher than historically, even though the chaotic nature of the coronavirus outbreak and supply-chain disruptions will likely prevent the company from reaching its targets on those metrics. While Caterpillar has suspended share buybacks and is delaying some R&D and capital expenditure projects with less visible returns, it made the decision to continue investing in growing its services business and expanding its product offerings because it continues to view those initiatives as key to its longer-term profitability. That’s a positive sign that the coronavirus hasn’t completely zapped CEOs’ appetite for investment.UPS: The good news for the package-delivery company is that its services have never been more important as store shutdowns and fear of contagion drive more consumers to online ordering. The bad news is that the spike in sales is coming at the expense of its profit margin. Why? It’s partly due to the sporadic nature of residential deliveries, which makes the process more expensive than shipping to businesses, and also because of the increased expenses involved in keeping workers safe. The knock-on costs of the coronavirus — including the expense of doing extra cleaning and providing workers with protective gear — amounted to $140 million in the first quarter. That’s an important data point to keep in mind as companies across less essential industries start bringing people back to work. Like Caterpillar, UPS will maintain investments in strategic priorities such as automation to help bolster its longer-term profitability. An expected $1 billion reduction in capital expenditures is going to come largely from a rethink of certain facilities projects and a delay in vehicle purchases. The company is also working with its customers when it comes to investing in their supply chains as the coronavirus exposes the flaws in far-flung networks. In many cases, that's going to mean a shift to third-party order fulfillment and logistics services. This is just an acceleration of a reappraisal that began with the U.S.-China trade war, UPS CEO David Abney said on the earnings call. A lot remains unknown about the coronavirus pandemic, but the messaging from most industrial CEOs at this point has focused on staying the course, whether that means maintaining most of the workforce or following through on investment commitments. UPS's Abney may have put it best: “I don't know that we'll ever get back to what we call the old normal, but we're not ready to declare what we see today as a new normal, either.”This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.