How Important Is The US For 3M?

August 3rd, 2016 by Trefis Team
-1.61%
Downside
130
Market
128
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MMM
3M

3M (NYSE:MMM) receives a bulk of its revenues from the US, which accounted for almost 40% of its net sales in 2015. What is even more interesting is that the reliance of the company on this region has grown considerably in the last five years. While revenues from overseas have been more or less stagnant or declining during the period, the growth in the US has far outpaced that in other countries. Given the slowdown in the country in recent years, this indeed, is a surprising statistic. However, given the political and economic turmoil in many of the international markets, the high exposure to the US may actually prove to be beneficial to 3M. A slowdown in China, high levels of inflation in the Latin American countries, and the uncertainty as a result of the Brexit, has threatened to hit the earnings of many global companies.

3M- Sales by Geography 3M- Sales In The US 3M- US Share Of Segments

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for 3M.
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