3M Wins Contract - Analyst Blog

3M Company (MMM) has won an order to supply sterilization assurance products to Premier Inc, a medical services provider. 3M’s products will be used in 2,400 hospitals and 70,000 centers affiliated to Premier.
 
3M Company was also awarded another contract to help member hospitals to cut costs by using simplified purchase functions.
 
The 3M brand is recognized and trusted around the world. Household names like Nexcare, Post-it, Scotch, Scotch-Brite, and Scotchgard are market leaders.
 
We believe that continued capital expenditure with new product launches and an increased focus on emerging markets (such as China, India, etc.) should bolster its prospects across most end markets.
 
The Health Care segment provides medical and surgical supplies, skin health and infection prevention products, drug delivery systems, dental and orthodontic products, health information systems, and anti-microbial solutions.
 
The danger on the economic front is deceptive due to the potential illusion of falling unemployment rates, which might occur only because people are losing benefits faster than new entrants joining the unemployment rolls. So, while the company might be through the worst of the storm, it is still sailing in some very choppy economic waters.
 
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 in six segments: Consumer and Office, Display and Graphics, Electro and Communications, Healthcare, Industrial and Transportation, Safety, Security and Protection Services Business.

We currently have a Neutral recommendation on 3M Company.