3M Co. MMM 0.80% said it expects sales across its product lines to grow this year as vaccinations against Covid-19 allow people to start using more of its products at dental offices, workplaces and schools.
Demand for the St. Paul, Minn.-based manufacturer’s products varied widely last year. The pandemic created enormous pressure on demand for the N95 face masks that medical workers wear to guard against the virus. But sales of other products such as Post-it Notes used by office workers and teeth-polishing discs used by dentists were hurt by social-distancing measures. In December, the company said it planned to cut nearly 3,000 jobs, reflecting slumping demand for some of its products.
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For 2021, 3M said it expects revenue excluding acquisitions and currency fluctuations to grow up to 6%. 3M had pulled its guidance early in the pandemic; restoring it indicates the company has more confidence in forecasting how the months ahead will play out. 3M said it would restart buying back its shares, a common practice to return cash to shareholders.
“We will continue to prioritize investments in growth, productivity and sustainability,” Chief Executive Mike Roman said.
Shares rose 0.7% in premarket trading on Tuesday.
3M, the biggest U.S. producer of N95 masks, said it has delivered 2 billion masks around the world and is making more than 95 million a month in the U.S., more than tripling pre-pandemic production.
3M recently joined an agreement with federal authorities and other mask makers to better coordinate and share-date on medical goods needed to fight the pandemic.
For its fourth quarter, 3M saw year-over-year sales gains in markets like personal safety, home improvement, general cleaning and semiconductor products. The declines in other areas continued, with sales of products aimed at elective health-care procedures, consumer electronics, hospitality and office supplies falling.
3M said it booked organic growth of 14% in China and 9% in the U.S. in its fourth quarter. The company’s mask business drove a 13% increase in sales in the company’s safety and industrial business unit, while transportation and electronics rose 2.3%, health care rose 5.4% and its consumer business increased 11%.
3M posted revenue growth of 5.8% to $8.58 billion in its fourth quarter. It had $2.38 in per-share earnings, compared with $1.66 in the same period a year before.
Write to Austen Hufford at [email protected]
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