How Will 3M Perform In 2016?

3M’s (NYSE:MMM) revenue is expected to grow by 4% in 2016. While Q1 results were dampened as a result of negative foreign currency effects, and the Electronics and Energy segment declined 18% due to a soft end market demand and high channel inventory, a recovery is expected. A leading position in a number of markets served by its Industrials segment is expected to drive growth. Moreover, a number of acquisitions made by 3M will result in improved sales in the future. The slowdown in the Electronics and Energy segment has led the company to take actions, such as the reduction of 250 positions worldwide, with the majority of reductions on the electronics side of the business. The Healthcare segment is expected to be a key growth driver in the future, with high growth rates expected in China. Furthermore, the company’s decision to invest and grow its Health Information Systems business will prove to be beneficial as strong growth rates are predicted for the Healthcare IT market (CAGR of 5%-8% during 2015-2020). In a meeting held with its investors and analysts, President and CEO of 3M, Inge G. Thulin, also discussed plans to strengthen and streamline its supply chain and a how a greater focus on lean six sigma would result in improved customer service, operational efficiencies, and an increased cash flow.

Have more questions on 3M? Have a look at these links below:

• What Is The Growth Expected Of Markets Served By 3M’s Industrials Segment Over The Next 5 Years?
• What Is The Growth Expected Of Markets Served By 3M’s Electronics & Energy Segment Over The Next 5 Years?
• How Will 3M’s Strategy Of Acquisitions To Drive Growth Pan Out In The Future?
• Why Will The Health Care Segment Be A Key Growth Driver For 3M?
• What Was The Biggest Factor Which Resulted In A Change In Sales In Q1 2016 In Each Region For 3M?
• 3M Beats EPS, Revenue Estimates
• Will Organic Growth Drive 3M’s Q1 Earnings?
• What Does 3M’s Five-Year Growth Plan Entail?
• What Is 3M’s Plan With Regards To China?
• What Is The Geographic Breakdown of 3M’s Sales?
• How Does 3M Compare With Its Peers In Terms Of R&D Spending?
• What Is 3M’s Fundamental Value Based On Expected 2016 Results?
• How Will 3M’s Revenue And EBITDA Composition Change In The Next 3 Years?
• 3M: Year 2015 In Review
• What Is 3M’s Revenue And EBITDA Breakdown?

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