ST. PAUL, Minn.--(BUSINESS WIRE)--
3M today announced that it has completed the sale of substantially all
of its Communication Markets Division to Corning Incorporated, for
approximately $870 million, before closing and other adjustments.
The business includes 3M’s optical and copper passive connectivity
solutions for the telecommunications industry, including 3M’s xDSL,
FTTx, and structured cabling solutions.
The sale of the telecommunications system integration services portion
of the business based in Hannover, Germany, remains pending and is
expected to be completed by the end of 2018 for approximately $30
million.
Total annual global sales of the business are approximately $400 million.
3M expects to realize a full-year 2018 earnings benefit of $0.40 to
$0.45 per share from this transaction, net of actions related to the
divestiture.
Forward-Looking Statements
This news release contains forward-looking information about 3M's
financial results and estimates and business prospects that involve
substantial risks and uncertainties. You can identify these statements
by the use of words such as "anticipate," "estimate," "expect," "aim,"
"project," "intend," "plan," "believe," "will," "should," "could,"
"target," "forecast" and other words and terms of similar meaning in
connection with any discussion of future operating or financial
performance or business plans or prospects. Among the factors that could
cause actual results to differ materially are the following: (1)
worldwide economic, political, and capital markets conditions and other
factors beyond the Company's control, including natural and other
disasters or climate change affecting the operations of the Company or
its customers and suppliers; (2) the Company's credit ratings and its
cost of capital; (3) competitive conditions and customer preferences;
(4) foreign currency exchange rates and fluctuations in those rates; (5)
the timing and market acceptance of new product offerings; (6) the
availability and cost of purchased components, compounds, raw materials
and energy (including oil and natural gas and their derivatives) due to
shortages, increased demand or supply interruptions (including those
caused by natural and other disasters and other events); (7) the impact
of acquisitions, strategic alliances, divestitures, and other unusual
events resulting from portfolio management actions and other evolving
business strategies, and possible organizational restructuring; (8)
generating fewer productivity improvements than estimated; (9)
unanticipated problems or delays with the phased implementation of a
global enterprise resource planning (ERP) system, or security breaches
and other disruptions to the Company's information technology
infrastructure; (10) financial market risks that may affect the
Company’s funding obligations under defined benefit pension and
postretirement plans; and (11) legal proceedings, including significant
developments that could occur in the legal and regulatory proceedings
described in the Company's Annual Report on Form 10-K for the year ended
Dec. 31, 2017, and any subsequent quarterly reports on Form 10-Q (the
“Reports”). Changes in such assumptions or factors could produce
significantly different results. A further description of these factors
is located in the Reports under "Cautionary Note Concerning Factors That
May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A
(Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly
Reports). The information contained in this news release is as of the
date indicated. The Company assumes no obligation to update any
forward-looking statements contained in this news release as a result of
new information or future events or developments.
About 3M
At 3M, we apply science in collaborative ways to improve lives daily.
With $32 billion in sales, our 91,000 employees connect with customers
all around the world. Learn more about 3M’s creative solutions to the
world’s problems at www.3M.com
or on Twitter @3M or @3MNews.
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Source: 3M