3M, Polaris, Ameriprise All See Strong Second Quarter Results
Three of Minnesota’s Fortune 500 companies have reported strong second quarter financial results within the last 24 hours. The numbers from Maplewood-based 3M Co., Medina-based Polaris Inc. and Minneapolis-based Ameriprise Financial Inc. all make a compelling case that business is back. And business is booming.
All three companies saw sales gains of more than 20 percent. That’s partly due to comparing results to the sluggish state of business for many in the second quarter of 2020 when the pandemic hit.
After seeing sluggish results during 2020, 3M announced that second quarter sales grew to $8.95 billion, up 24.7 percent compared to last year. At the same time the company posted net income of $1.5 billion for the quarter, up 16.8 percent compared to last year.
“3M delivered strong performance in the second quarter, once again posting organic growth across all business groups and geographic areas, along with increased earnings and robust cash flow,” said Mike Roman, 3M’s chairman and CEO, in a statement. “In an uncertain economic environment, our team executed well and drove innovation across our businesses, while continuing to build for the future. Looking forward, we remain focused on investing in growth opportunities coming out of the pandemic, improving productivity, advancing sustainability, and delivering differentiated value for our customers and shareholders.”
3M updated its guidance for the full year, forecasting that it will finish 2021 with sales growth in the range of 7 to 10 percent. The company posted annual revenue of $32.2 billion for 2020.
Polaris is revving its engines. Second quarter sales were up 40 percent to $2.1 billion, a second quarter record for the company. Polaris reported net income of $158.5 million for the quarter, compared to a net loss of $235.4 million a year ago.
“All of our segments performed extremely well, posting strong increases in both sales and profitability in the face of a challenging supply chain and increasing input cost environment,” said Polaris CEO Mike Speetzen in a statement.
The company’s earnings statement also noted: “Ongoing robust retail demand requiring little or no promotional assistance, along with favorable product mix and pricing continued to drive improvements in the Company’s performance.”
Polaris reported annual sales of $7 billion for 2020, a 3.6 percent gain compared to 2019.
Polaris increased its sales and earnings guidance to Wall Street for the full year. The company now expects to record annual revenue in the range of $8.375 billion to $8.5 billion, which would mean an increase between 19 to 21 percent compared to 2020.
Ameriprise saw revenue of $1.98 billion for the quarter, an increase of 28.8 percent compared to last year. The company saw net income of $591 million, compared to a loss of $539 million a year ago.
“Ameriprise delivered a strong second quarter and a record first half in operating revenue, earnings and EPS, as we continue to build on our momentum. We are delivering an excellent client experience and deepening relationships, which is driving continued growth in the business,” said Jim Cracchiolo, Chairman and CEO of Ameriprise, in a statement. “In the quarter, nearly 80 percent of revenue and pretax earnings were driven by our asset-light Advice and Wealth Management and Asset Management businesses.”
All in all, Minnesota’s Fortune 500 companies saw mixed results due to the pandemic in 2020. Retailers Target and Best Buy saw big sales gain, but four of Minnesota’s largest companies – including Ameriprise – saw revenue drops last year.