3M Introduces 5-Year Plan That Reflects 'Confidence In Driving Efficient Growth'

Shares of 3M Co (NYSE: MMM) were trading lower by more than 1 percent on Tuesday after the company hosted a meeting with investors and analysts and issued a new five-year plan.

3M's new five-year plans include: 1) 8 to 11 percent growth in earnings per share, 2) 2 to 5 percent organic local currency sales growth, 3) 20 percent return on invested capital, and 4) 100 percent free cash flow conversion.

"These objectives reflect our confidence in driving efficient growth – that is, strong, sustainable growth and premium returns – well into the future," said 3M's Chairman, President and CEO Inge Thulin. "Going forward, we remain focused on controlling the controllable, investing for the long term, and leveraging our scientific capabilities to create even greater value for our customers and shareholders."

3M also reaffirmed its full year 2016 earnings per share guidance and expects to earn $8.10 to $8.45 per share with organic local-currecy sales growth of 1 to 3 percent. The company also reaffirmed its expectations for a free cash flow conversion of 95 to 105 percent.