Back to top

Analyst Blog

3M Company (MMM - Analyst Report) has completed the expansion of its Pad Conditioner manufacturing factory in Woodlands, Singapore. The company also inaugurated a new pad conditioner manufacturing plant in YangMei, Taiwan. 3M is a globally renowned provider of chemical mechanical planarization (CMP) Pad Conditioners.

3M has become the sole pad conditioner manufacturer operating in Cottage Grove, Minn., Woodlands, Singapore and YangMei, Taiwan with this expansion. The Singapore facility has already been expanded earlier during the year and production capacity of the Taiwan factory has been increased.

The semiconductor finishing solutions and technologies from 3M are fit to meet the rising requirement of semiconductor CMP. Pad conditioners from 3M deliver stable performance and have low defect rates.

Strong cash flow position and continuously expanding sales revenue provide 3M ample resources to expand through acquisition and innovation of new products. 3M is globally recognized for its innovations, together with some of its well-known brands such as Nexcare, Post-it, Scotch, Scotch-Brite, and Scotchgard being the market leaders. We believe that continued capital expenditure with new product launches should bolster its prospects across most end markets.

However, the company’s growth objectives are largely dependent on timing and market acceptances of its new product offerings, including its ability to continually renew its pipeline of new offerings and bring those to the market at acceptable price points. Further, the results have been impacted by worldwide economic and capital market conditions.

Negative consumer sentiment is affecting the retail store traffic. On the corporate side, lower employment levels are negatively reducing office supply purchases in most companies.

3M Company  together with its subsidiaries operates as a diversified technology company with manufacturing operations spread over 60 countries worldwide. It has more than 35 business units organized into six segments: Consumer and Office, Display and Graphics, Electro and Communications, Healthcare, Industrial and Transportation, Safety, Security and Protection Services Business. Major competitors of 3M are Avery Dennison Corporation (AVY - Analyst Report), EI DuPont de Nemours & Co. (DD - Analyst Report) and Johnson & Johnson (JNJ - Analyst Report).

We continue to maintain a Neutral rating on 3M Company for the long term. The company has a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%