3m Upcoming Catalysts

060 Upcoming Catalysts 3M will host its annual analyst day on December 17, in which the senior management will provide updates on the company's long-term vision post 2013. This is a major event, held each year, in which the management sets the terms for the company's performance in the long run. 3M's management conducts a strategic review of its businesses during the event, analyzing the performance ofeach division. If a division is not as profitable as others, its residual cash is utilized elsewhere. $2.5 billion from failing infrastructure divisions were directed back into the electronic division after the analyst day last year, which resulted in a significant bump in 3M's earnings during the ongoing year. 3M is expected to initiate another share buyback program worth $1.5 billion, roughly 1.5% of its market cap. Year to date, the company has already purchased $2.2 billion worth of its stock. ceradyne, inc. ARMOR SYSTEMS The company should experience continued synergies from its acquisition of Ceradyne, which produces ceramic used in automobile manufacturing and military applications. With autõmobile production currently at five-year record levels, the company is in a position to strategically expand its Industrials and Transportation segment. 3M's continued focus on R&D will result in higher earnings for the company. Earnings and R&D expenses are correlated by a factor of 0.93. The company invested 6% more in R&D during 3QFY13 over the same period last year. R&D Expense vs. EPS EPS R&D Expense (in billion) $7 $1.8 $1.7 $6 $1.6 $1.5 $5 $1.4 $1,3 70a $4 $1.2 2008 2009 2010 2011 2012 3M restructured its Safety, Security and Protection segment with Display & Graphics division to create synergies, reduce costs and expand margins. The company is always attempting to better align itself with its end user markets. The company has raised its dividends at a CAGR of 3.4% over the last 5 years and is on track to pay $2.54/share this year, a growth of 7.6% from 2012. The company paid $0.64 in DPS in 3QY13, yielding 1.96%. Possible acquisitions, restructuring, divestitures and dividend growth remain potential catalyst for the company. SOURCES: Company Data, SEC filings, Bloomberg Professional Services BIDNESS etc. DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein or to suggest approval for or affiliation with Bidness Etc.