The American group 3M, which manufactures N95 protective masks which are much sought after to stem the spread of the new coronavirus, saw its quarterly net profit soar by 45%, boosted by demand for its medical equipment. Net profit stood at 1.29 billion dollars in the first quarter, against 893 million in the same period a year earlier, according to a statement released Tuesday.
Read also: Deconfinement: for businesses, the puzzle of masks
Turnover increased by 2.7% to $ 8.1 billion, reversing the downward curve that had led 3M to launch in January a restructuring plan including the loss of 1,500 jobs. The group also strengthened its cash position, with cash flows up 40% over one year.
" Given the diversity of our activities, the financial impact of the Covid-19 has been varied, " said Mike Roman, CEO, quoted in a statement. " In the first quarter, we saw solid growth in equipment related to personal safety, as well as in our entire portfolio of medical equipment due to strong demand due to the pandemic, " continued the leader. At the same time, demand was “ weak ” in the other industries affected by the containment and social distancing measures in force across the globe to stem the spread of Covid-19. In addition to surgical masks, 3M manufactures post-it notes, adhesive tapes and safety equipment, among others.
In early April, the company had been attacked on Twitter by US President Donald Trump, who had invoked a Korean War law in order to mobilize, as an exceptional priority, the production of 3M masks for the needs of the security of the country. The two sides finally reached an agreement a few days later, providing for the delivery of nearly 167 million masks for the United States in the coming months.
Read also: Funding to "increase" the production of sanitary masks
If 3M has found colors, the group nevertheless suspended Tuesday its annual financial targets, citing economic uncertainties due to the pandemic. He explains that he wants to save between 350 and 400 million dollars, mainly by reducing his investments. 3M also maintains the dividends promised to its shareholders but will suspend the share buyback programs.