Name: 3M Co. (NYSE:MMM) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

3M Co., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net sales	35,355)	32,184)	32,136)	32,765)	31,657)
Cost of sales	(18,795)	(16,605)	(17,136)	(16,682)	(16,001)
Gross profit	16,560)	15,579)	15,000)	16,083)	15,656)
Selling, general and administrative expenses	(7,197)	(6,929)	(7,029)	(7,602)	(6,572)
Research, development and related expenses	(1,994)	(1,878)	(1,911)	(1,821)	(1,850)
Gain on sale of businesses	—)	389)	114)	547)	586)
Operating income	7,369)	7,161)	6,174)	7,207)	7,820)
Interest expense	(488)	(529)	(448)	(350)	(322)
Interest income	26)	29)	80)	70)	50)
Pension and postretirement net periodic benefit benefit	297)	50)	68)	73)	—)
Loss on deconsolidation of Venezuelan subsidiary	—)	—)	(162)	—)	—)
Other income (expense), net	(165)	(450)	(462)	(207)	(272)
Income before income taxes	7,204)	6,711)	5,712)	7,000)	7,548)
Provision for income taxes	(1,285)	(1,318)	(1,130)	(1,637)	(2,679)
Income of consolidated group	5,919)	5,393)	4,582)	5,363)	4,869)
Income (loss) from unconsolidated subsidiaries, net of taxes	10)	(5)	—)	—)	—)
Net income including noncontrolling interest	5,929)	5,388)	4,582)	5,363)	4,869)
Net income attributable to noncontrolling interest	(8)	(4)	(12)	(14)	(11)
Net income attributable to 3M	5,921)	5,384)	4,570)	5,349)	4,858)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Revenue exhibited a period of relative stagnation between 2017 and 2020, followed by a significant increase in 2021, where net sales reached 35,355 million US$. This growth in the final year of the period marks a deviation from the previous four-year plateau.

Gross Profitability: Gross profit remained relatively stable, fluctuating between 15,000 million and 16,560 million US$. While net sales grew in 2021, the cost of sales also rose to 18,795 million US$, indicating that the increase in top-line revenue was accompanied by proportional increases in direct production costs.
Operating Efficiency: Operating income experienced a decline from 7,820 million US$ in 2017 to a low of 6,174 million US$ in 2019, before recovering to 7,369 million US$ by 2021. This volatility is partially attributed to fluctuations in selling, general, and administrative expenses, which peaked in 2018 at 7,602 million US$ before stabilizing. Research and development expenditures remained consistent throughout the period, averaging approximately 1,900 million US$ annually, suggesting a steady commitment to innovation despite fluctuations in operating income.
Financial and Non-Operating Items: Interest expenses showed a steady upward trend, increasing from 322 million US$ in 2017 to 488 million US$ in 2021. Non-operating results were influenced by gains on the sale of businesses, which were most prominent between 2017 and 2020, and a specific loss on the deconsolidation of a Venezuelan subsidiary in 2019.
Net Earnings and Taxation: Net income attributable to the company demonstrated resilience, ending the period at 5,921 million US$ in 2021, the highest value in the analyzed five-year span. This growth in net income was supported by a notable reduction in the provision for income taxes, which decreased from 2,679 million US$ in 2017 to 1,285 million US$ in 2021, thereby increasing the conversion of pre-tax income to net profit.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?