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Health care sector demand due to COVID-19 continues to help 3M

By Mike Hughlett, Star Tribune (Minneapolis) on

Published in Business News

MINNEAPOLIS - 3M's sales rose 2% in August buoyed by a strong performance in its health care sector.

The worldwide economic slowdown, though, continued to affect its stalwart safety and industrial business.

Maplewood, Minn.-based 3M Tuesday announced August sales of $2.7 billion, up 2% over a year ago and continuing a rebound after COVID-19 hit the company hard this year. 3M has been releasing monthly sales updates since this spring.

Organic sales, which include volume impacts and selling price changes, declined 2%. Though acquisitions, net of divestitures, and foreign currency effects, affected sales positively, increasing them 3% and 1%, respectively.

3M sales for August 2020 were impacted by one fewer business day, contributing a negative impact of 5% year-on-year.

 

August sales rose 23% in 3M's health care segment, which has experienced a COVID-induced boost in sales of personal protective equipment. 3M's safety and industrial sector saw a 6% gain in sales, while its consumer unit posted a 3% increase. Weakness continued in the company's transportation and electronics business, with sales falling 11%.

On a geographic basis, sales rose in the Americas and Europe and the Middle East, but fell in Asia.

3M's stock was at $167.57, down 89 cents in Tuesday morning trading.

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