-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cdo6/U1Ajp4bCrNsrMAvtKJfVbaNa4qEeqTpg5tM7vV6zAzxbmfLS4km5L8NDYb+ CkFwoTFUjXmRKoS1Wc379g== /in/edgar/work/20000727/0000066740-00-000010/0000066740-00-000010.txt : 20000921 0000066740-00-000010.hdr.sgml : 20000921 ACCESSION NUMBER: 0000066740-00-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000726 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MINNESOTA MINING & MANUFACTURING CO CENTRAL INDEX KEY: 0000066740 STANDARD INDUSTRIAL CLASSIFICATION: [3290 ] IRS NUMBER: 410417775 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03285 FILM NUMBER: 680076 BUSINESS ADDRESS: STREET 1: 3M CENTER CITY: ST PAUL STATE: MN ZIP: 55144-1000 BUSINESS PHONE: 6517331110 8-K 1 0001.txt 8K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: July 26, 2000 (Date of earliest event reported) MINNESOTA MINING AND MANUFACTURING COMPANY (Exact name of registrant as specified in its charter) File No. 1-3285 (Commission File Number) Delaware 41-0417775 (State of incorporation) (I.R.S. Employer Identification Number) 3M Center 55144-1000 St. Paul, Minnesota (Zip Code) (Address of principal executive offices) Registrant's telephone, including area code: (651) 733-1110 ITEM 5. OTHER EVENTS Attached and incorporated herein by reference as Exhibit 99 is a copy of a press release of Minnesota Mining and Manufacturing Company dated July 26, 2000, reporting 3M's financial results for the second quarter of 2000. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Required by Item 601 of Regulation S-K EXHIBIT NO. DESCRIPTION ---------- ----------- 99 Press Release dated July 26, 2000 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MINNESOTA MINING AND MANUFACTURING COMPANY By: /s/ Gregg M. Larson -------------------- Gregg M. Larson, Assistant Secretary Dated: July 26, 2000 EXHIBIT INDEX EXHIBIT DESCRIPTION - ------- ----------- 99 Press release dated July 26, 2000 EX-99 2 0002.txt PRESS RELEASE EXHIBIT 99 Investor Contacts: Jon Greer Media Contact: John Cornwell 651-736-1915 651-733-7698 jagreer@mmm.com jrcornwell@mmm.com Matt Ginter 651-733-8206 mjginter@mmm.com FOR IMMEDIATE RELEASE 3M Reports Record Second-Quarter, First-Half Sales and Profits* Q2 EPS up 14.6% on 12% volume increase ST. PAUL, Minn. - July 26, 2000 - 3M today reported record second- quarter earnings of $1.18 per share, an increase of 14.6 percent from the same quarter of 1999. Net income reached $470 million, up from $421 million in the year-earlier quarter. Operating income was 18.4 percent of sales, up from 18.1 percent of sales in the second quarter last year. Net income was 11.1 percent of sales, compared with 10.9 percent of sales in the year-earlier quarter. Sales totaled $4.224 billion, an increase of more than 9 percent in U.S. dollars and more than 10 percent in local currencies. "We continue to deliver solid growth," said L. D. DeSimone, chairman and chief executive officer. "We're growing through a strong flow of innovative products, increasing participation in dynamic industries and our strong global presence. Solid productivity gains also continued to contribute to our financial performance. "Our Electro Communications businesses continued to register strong growth," DeSimone said. "We also saw solid gains in our Consumer and Office and our Transportation, Graphics and Safety segments." 3M posted double-digit local-currency sales gains in Europe, the Asia Pacific area and Latin America, driven by new products and improving economies. For the first six months of 2000, earnings totaled $2.31 per share, an increase of 16.7 percent from the first half last year. Net income totaled $926 million, up from $805 million in the comparable period. Operating income was 18.6 percent of sales, up about a full percentage point from the first six months last year. Sales totaled $8.276 billion, an increase of more than 8 percent in U.S. dollars and more than 9 percent in local currencies from the year-earlier period. "Our diversity of products, markets and geographic participation is a major strength," DeSimone said. "It gives us many avenues for growth, while cushioning us from disruptions in any single market or region of the world. "Looking ahead, we remain confident about our prospects," he said. "Our businesses are leaders in their markets, and we expect to continue to register solid growth, driven by new products, our increasing participation in fast-growing industries, strong relationships with customers and our worldwide presence." * This news release discussion excludes non-recurring items in all periods. Second-quarter 1999 net income of $421 million and first six months 1999 net income of $805 million exclude gains on divestitures, net of an investment valuation adjustment, of $104 million ($55 million, or 14 cents per share, after tax). For the first six months of 2000, net income of $926 million excludes a $50 million benefit ($31 million, or 8 cents per share, after tax) related to the termination of a marketing agreement in the company's health care business. Forward-Looking Statements Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors, including: (1) worldwide economic conditions; (2) foreign exchange rates and fluctuations in those rates; (3) the timing and acceptance of new product offerings; (4) raw materials, including shortages and increases in the costs of key raw materials; (5) our ability to successfully manage acquisitions, divestitures and strategic alliances; and (6) legal proceedings. # # # About 3M 3M is a $16 billion technology company with leading positions in electronics, telecommunications, industrial, consumer and office, health care, safety and other markets. Headquartered in St. Paul, Minnesota, the company has operations in more than 60 countries and serves customers in nearly 200 countries. 3M businesses share technologies, manufacturing operations, brands, marketing channels and other important resources. 3M is one of the 30 stocks that make up the Dow Jones Industrial Average and also is a component of the Standard & Poor's 500 Index. Additional information about the company is available on the Internet at www.3M.com. Minnesota Mining and Manufacturing Company and Subsidiaries (Unaudited) Sales Change Analysis Second-Quarter 2000
U.S. International Worldwide Volume 7% 18% 12% Price (1) (2) (2) Translation -- (3) (1) === === === Total 6% 13% 9% ____________________________________________________________________
Sales Change Analysis First-Half 2000
U.S. International Worldwide Volume 7% 15% 11% Price (1) (2) (2) Translation -- (3) (1) === === === Total 6% 10% 8%
Minnesota Mining and Manufacturing Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME (Unaudited)
3 Months Ended 6 Months Ended June 30 June 30 (Amounts in millions, except per-share amounts) 2000 1999 2000 1999 Net sales $4,224 $3,863 $8,276 $7,639 Operating expenses Cost of goods sold 2,379 2,188 4,645 4,350 Selling, general and administrative expenses 1,068 975 2,089 1,940 Other -- (104) (50) (104) ------ ------ ------ ------ Total 3,447 3,059 6,684 6,186 ------ ------ ------ ------ Operating income 777 804 1,592 1,453 ------ ------ ------ ------ Other income and expense Interest expense 26 26 52 57 Investment and other income -- net (6) (7) (12) (15) ------ ------ ------ ------ Total 20 19 40 42 ------ ------ ------ ------ Income before income taxes and minority interest 757 785 1,552 1,411 Provision for income taxes 265 291 547 516 Minority interest 22 18 48 35 ------ ------ ------ ------ Net income $ 470 $ 476 $ 957 $ 860 ====== ====== ====== ====== Weighted average common shares outstanding -- basic 395.6 403.2 396.6 402.8 Earnings per share -- basic $ 1.19 $ 1.18 $ 2.41 $ 2.14 ====== ====== ====== ====== Weighted average common shares outstanding -- diluted 399.2 407.4 400.5 406.5 Earnings per share -- diluted $ 1.18 $ 1.17 $ 2.39 $ 2.12 ====== ====== ====== ======
Minnesota Mining and Manufacturing Company and Subsidiaries SUPPLEMENTAL CONSOLIDATED STATEMENT OF INCOME INFORMATION (Unaudited) (Amounts in millions, except per-share amounts)
3 Months Ended 3 Months Ended June 30, 2000 June 30, 1999 Excluding Non- Non- Reported recurring recurring Reported Total Items Items Total Operating income $ 777 $ 700 $ 104 $ 804 Other expense $ 20 $ 19 -- $ 19 Income before income taxes and minority interest $ 757 $ 681 $ 104 $ 785 Provision for income taxes $ 265 $ 242 $ 49 $ 291 Effective tax rate 35.0% 35.5% 46.9% 37.0% Minority interest $ 22 $ 18 -- $ 18 Net income $ 470 $ 421 $ 55 $ 476 Per share -- diluted $1.18 $1.03 $0.14 $1.17
6 Months Ended 6 Months Ended June 30, 2000 June 30, 1999 Excluding Excluding Non- Non- Non- Non- recurring recurring Reported recurring recurring Reported Items Items Total Items Items Total Operating income $1,542 $ 50 $1,592 $1,349 $ 104 $1,453 Other expense $ 40 -- $ 40 $ 42 -- $ 42 Income before income taxes and minority interest $1,502 $ 50 $1,552 $1,307 $ 104 $1,411 Provision for income taxes $ 528 $ 19 $ 547 $ 467 $ 49 $ 516 Effective tax rate 35.2% 38.0% 35.3% 35.7% 46.9% 36.6% Minority interest $ 48 -- $ 48 $ 35 -- $ 35 Net income $ 926 $ 31 $ 957 $ 805 $ 55 $ 860 Per share -- diluted $ 2.31 $0.08 $ 2.39 $ 1.98 $0.14 $ 2.12
Minnesota Mining and Manufacturing Company and Subsidiaries CONSOLIDATED BALANCE SHEET (Unaudited)
June 30 Dec. 31 (Dollars in millions) 2000 1999 Assets Current assets Cash and cash equivalents $ 420 $ 387 Other securities 16 54 Accounts receivable -- net 3,009 2,778 Inventories 2,252 2,030 Other current assets 1,057 817 ------- ------- Total current assets 6,754 6,066 Property, plant and equipment -- net 5,710 5,656 Investments and other assets 2,469 2,174 ------- ------- Total $14,933 $13,896 ======= ======= - ------------------------------------------------------------ Liabilities and Stockholders' Equity Current liabilities Short-term debt $ 1,871 $ 1,130 Other current liabilities 3,103 2,689 ------- ------- Total current liabilities 4,974 3,819 Long-term debt 1,193 1,480 Other liabilities 2,343 2,308 Stockholders' equity -- net 6,423 6,289 Shares outstanding June 30, 2000: 395,291,674 shares Dec. 31, 1999: 398,710,817 shares ------- ------- Total $14,933 $13,896 ======= =======
Minnesota Mining and Manufacturing Company and Subsidiaries BUSINESS SEGMENTS (Unaudited) In the first quarter of 2000, business segment operating income for 1999 was restated for minor amounts, to be consistent with year 2000 management reporting practices. Certain costs previously included in Corporate and Unallocated were allocated to the individual business segments. 3M net sales and operating income by segment follow.
Business Segment Six Six Second Second First First Information Months Months Qtr Qtr Qtr Qtr (Millions) 2000 1999 2000 1999 2000 1999 Net sales Industrial $1,784 $1,678 $ 873 $ 836 $ 911 $ 842 Transportation, Graphics and Safety 1,784 1,583 912 806 872 777 Health Care 1,559 1,561 794 793 765 768 Consumer and Office 1,379 1,276 692 638 687 638 Electro and Communications 1,147 927 642 485 505 442 Specialty Material 607 584 302 292 305 292 Corporate and Unallocated 16 30 9 13 7 17 Total Company $8,276 $7,639 $4,224 $3,863 $4,052 $3,776 Operating income Industrial $ 338 $ 302 $ 153 $ 154 $ 185 $ 148 Transportation, Graphics and Safety 422 319 213 171 209 148 Health Care 351 338 158 194 193 144 Consumer and Office 207 183 102 95 105 88 Electro and Communications 194 172 105 90 89 82 Specialty Material 108 115 57 60 51 55 Corporate and Unallocated (28) 24 (11) 40 (17) (16) Total Company $1,592 $1,453 $ 777 $ 804 $ 815 $ 649
First quarter 2000 operating income includes a $50 million benefit relating to the termination of a product distribution agreement in the Health Care segment. Second quarter 1999 operating income includes gains on divestitures, net of an investment valuation adjustment, of $30 million in Health Care and $74 million in Corporate and Unallocated. -----END PRIVACY-ENHANCED MESSAGE-----