3M to return US$10 billion to shareholders, reiterates sales forecast

3M also reaffirmed its annual forecast of organic sales growth in the range of 2% to 3%

3M Co said on Wednesday (Feb 26) it would return at least US$10 billion in cash to shareholders and targeted an operating margin of about 25 per cent by 2027, as the diversified manufacturer benefits from a restructuring under its new CEO.

Bill Brown, who succeeded Mike Roman as CEO in May, has focused on developing new products, redirecting spending from the company’s earlier priorities of mitigating legal liabilities and reducing supply-chain costs.

Saint Paul, Minnesota-based 3M has also focused on reining in costs and exiting less-profitable consumer product lines to combat slowing demand as part of its restructuring efforts.

3M also reaffirmed its annual forecast of organic sales growth in the range of 2 per cent to 3 per cent.

The company, which will host its annual investor day later on Wednesday, reported an operating income margin of 19.6 per cent last year. REUTERS

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