3M Shares Cross $130 Amid Strong Outlook, Raised Dividend

This morning, 3M Company MMM issued a press release affirming sales and earnings growth objectives and next year's outlook. 3M Company will provide an update to the 2014 outlook and their five-year plan in a meeting with institutional investors and analysts today. President and CEO Inge G. Thulin will elaborate on 3M's active portfolio management, innovation investment, and business transformation. Thulin will outline the company's 2013-2017 financial objectives including an expected EPS growth of 9-11% and organic sales growth of 4-6%. Over these five years, 3M expects an approximate 20% return on invested capital and an approximate 100% free cash flow conversion. Senior Vice President and Chief Financial Officer David Meline will describe 3M's management on an enhanced capital structure strategy and increased capital deployment. The company will leverage its balance sheet to add growth to 3M and increase returns for shareholders. 3M announced that the company's board of directors declared a 35% dividend increase in the first quarter of 2014 from $0.635 to $0.855. The company expects to spend $17-22 billion on gross share repurchases within their five-year plan versus the previously expected range of $7.5-15 billion. Thulin commented, "the strength and diversity of our business model supports more aggressive capital deployment and reflects our confidence in 3M's future. We are building the company for long-term success and are committed to creating sustainable value for our shareholders." 3M Company was up almost 2.6% in pre-market trading. Shares are currently up 2.70% at $131.11. 3M Company's meeting will be a live webcast from 1-5 p.m. EST. Investors and the general public can access this meeting via http://investor.3M.com. For the webcast replay, access the Investor Relations website at http://investor.3M.com and click on “3M 2014 Outlook Meeting.”