News October 23, 2024
Sales Slip for 3M/Promotional Markets in Q3
The publicly traded parent company of the Counselor Top 40 supplier, however, eked out a gain.
Key Takeaways
• Sales Decline: 3M/Promotional Markets (asi/91240) reported a 6% sales drop in Q3 2024, marking a second consecutive quarter of decline.
• Positive Indicators: Despite the dip, order counts increased, and expectations for Q4 are more optimistic.
• Parent Company Performance: 3M/Promotional Markets is part of 3M, which reported a company-wide revenue rise and improved net income.
3M/Promotional Markets (asi/91240) experienced a sales drop for a second straight quarter.
The Counselor Top 40 supplier, which is part of publicly traded conglomerate 3M, shared with ASI Media that sales were down approximately 6% in the third quarter of 2024 compared to the same three-month stretch the previous year. The supplier’s sales retreated less than 1% in Q2 of this year.
Still, there were some encouraging signs, Misty Friedrichs, contract national sales manager at 3M/Promotional Markets, told ASI Media.
“Our order count was up in the quarter,” Friedrichs said. “Also, Q4 is looking better. We’re hoping the end of Q3 was just a little bump in the road.”
More specifics weren’t available, she said, as 3M doesn’t break down the promo division’s total performance in its quarterly financials.
Headquartered in Minnesota, 3M is a multinational company with a diversified business that operates in fields that include consumer goods, healthcare and worker safety.
The firm released its full company financials for Q3 this week, noting that top-line revenue rose about 0.4% to nearly $6.3 billion. For the first nine months of the year, 3M’s sales were down 0.23%, tallying about $18.56 billion.
As for the bottom line, Q3 net income attributable to 3M from continuing operations in Q3 registered about $1.37 billion, translating to basic earnings per share of $2.49. That was much improved over last year’s Q3, when the company suffered a $2 billion loss, with a corresponding $3.74 loss per basic share. In 2024’s Q3, adjusted earnings per share from continuing operations were $1.98, up 18% year over year.
Over 2024’s first nine months, net income was about $3.44 billion, or $6.23 earnings per basic share. Again, that was a year-over-year improvement: During 2023’s first nine months, the company experienced a loss of $7.9 billion.
Based on results, 3M upped its forecast for full-year 2024 adjusted EPS from continuing operations to $7.20 to $7.30 from $7 to $7.30.
“Our ongoing execution positions us well to deliver a strong finish to the year,” said 3M CEO William Brown. “I am confident that our work on advancing our three priorities – organic growth, operational excellence and capital deployment – will deliver long-term value creation for our shareholders.”
Brown became CEO earlier this year, replacing Michael Roman, who became executive chairman.
Based on reported 2023 North American promotional product revenue of $108.8 million, 3M/Promotional Markets ranked 17th on Counselor’s most recent list of the largest suppliers in the industry.