UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 26, 2011
3M COMPANY
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
File No. 1-3285 |
|
41-0417775 |
(Commission File Number) |
|
(IRS Employer Identification No.) |
3M Center, St. Paul, Minnesota |
|
55144-1000 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
(651) 733-1110
(Registrants Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On April 26, 2011, 3M Company issued a press release reporting first-quarter 2011 results and raising 2011 earnings expectations (attached hereunder as Exhibit 99 and incorporated herein by reference).
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit Number |
|
Description |
99 |
|
Press Release, dated as of April 26, 2011, of 3M Company (furnished pursuant to Item 2.02 hereof) |
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 hereunto duly authorized.
|
3M COMPANY | |
|
|
|
|
By: |
/s/ Gregg M. Larson |
|
|
Gregg M. Larson, |
|
|
Deputy General Counsel and Secretary |
Dated: April 26, 2011
Exhibit 99
FOR IMMEDIATE RELEASE
3M First-Quarter Sales Rise 15 Percent to a Record $7.3 Billion;
Earnings Rise 16 Percent to $1.49 Per Share
Company Raises 2011 Earnings Expectations
ST. PAUL, Minn. April 26, 2011 3M (NYSE: MMM) today reported record first-quarter sales of $7.3 billion, up 15.2 percent year-on-year, including an 8.9 percent increase in organic sales volumes. Earnings rose 15.5 percent to $1.49 per share and operating margins for the quarter were 21.6 percent. All six of the companys business segments posted operating margins above 21 percent in the quarter.
The company estimates that combined direct and indirect business disruption resulting from events in Japan reduced first-quarter sales growth by 70 basis points, operating margins by 40 basis points and earnings by $0.03 per share.
Sales increased at a double-digit rate in all geographic regions, with Asia Pacific up 21.0 percent, Latin America/Canada up 19.5 percent, Europe up 13.1 percent and the United States up 10.2 percent. All six of 3Ms business segments expanded sales in the quarter, with particular strength in Electro and Communications at 20.5 percent, Industrial and Transportation at 20.3 percent and Safety, Security and Protection Services at 14.4 percent.
Sales in emerging markets grew by 24 percent in the first quarter and now comprise 34 percent of 3Ms worldwide sales. Sales grew by 30 percent in India, 27 percent in China/Hong Kong and 25 percent in Brazil.
We are off to a tremendous start in 2011 with first-quarter organic sales growth of 9 percent or 10.5 percent adjusting for Japan and H1N1 impacts, said George W. Buckley, 3M chairman, president and chief executive officer. New product flow is accelerating, boosted by higher investment in laboratory, sales and marketing and manufacturing capacity. Sales are growing faster as a result and our businesses are growing most everywhere in the world. The company noted that its new product vitality index, which measures the percent of sales attributed to new products, is projected to rise again in 2011, on top of a record 31 percent in 2010.
In addition, we were able to more than overcome the impact of the terrible earthquake in Japan and its tragic aftermath in the tsunami and nuclear power plant issues, Buckley continued. I would like to thank all our employees for their outstanding execution in the first quarter, with special heartfelt thanks to our courageous Japanese team for selflessly responding to this challenge. Our hearts go out to all of them and to their nation.
3M estimates that combined direct and indirect business disruption resulting from events in Japan will reduce full year sales growth by approximately one percentage point, operating margins by 30 basis points and earnings by $0.10 to $0.13 per share.
Despite these headwinds, 3M increased its 2011 performance expectations. The company now expects full-year earnings will be in the range of $6.05 to $6.25 per share versus a prior expectation of $5.95 to $6.20 per share. Included in this estimate is a $0.22 per share year-on-year increase in pension
and postretirement benefit expense. Excluding the pension and postretirement expense increase, 2011 earnings would be in the range of $6.27 to $6.47 per share, an increase of 11 to 15 percent year-over-year. The company also updated its expectation for organic sales volume growth to a range of 6.0 to 7.5 percent versus a prior range of 5.5 to 7.5 percent. 3M expects that currency effects will add 2 to 3 percent to sales for the year and acquisitions will add another 4 to 6 percent.
Key Financial Highlights
First-quarter worldwide sales totaled $7.3 billion, up 15.2 percent compared to the first quarter of 2010. Organic volumes grew 8.9 percent, selling prices rose 0.1 percent, acquisitions added 3.2 percent and foreign exchange added 3.0 percent to sales in the quarter.
Local-currency sales including acquisitions grew in all six of the companys business segments, with Electro and Communications up 17.1 percent, Industrial and Transportation up 16.9 percent, Safety, Security and Protection Services up 11.3 percent, Health Care up 9.7 percent, Consumer and Office up 7.0 percent and Display and Graphics up 6.4 percent. All geographic regions posted double-digit local-currency sales growth, with Asia Pacific up 15.6 percent, Latin America/Canada up 12.3 percent, Europe up 10.5 percent and the U.S. up 10.2 percent.
First-quarter net income was $1.1 billion, or $1.49 per share, versus $930 million, or $1.29 per share, in the first quarter of 2010. Total-company operating income margins were 21.6 percent for the quarter, with all six business segments at 21 percent or higher. First-quarter 2010 included a one-time income tax charge of $84 million, or $0.11 per share, resulting from a change in tax treatment for Medicare Part D reimbursements (a).
Business Segment Discussion
Industrial and Transportation
· Sales of $2.5 billion, up 16.9 percent in local currency, including 3.6 percent from acquisitions.
· Double-digit local-currency sales growth in most businesses, led by renewable energy, aerospace and aircraft maintenance, abrasives and industrial adhesives and tapes.
· Double-digit sales growth in all geographies, led by a 28 percent increase in Asia Pacific, 22 percent in Latin America/Canada, 19 percent in Europe and 14 percent in the U.S.
· Operating income of $516 million; operating margin of 21.1 percent.
Health Care
· Sales of $1.3 billion, up 9.7 percent in local currency, including 5.1 percent from acquisitions.
· Arizant acquisition outperforming sales and profit expectations; integration is tracking ahead of plan.
· Local-currency sales increased in all businesses, led by double-digit growth in both infection prevention and food safety.
· Sales rose at a double-digit rate in every geographic region, with Asia Pacific up 21 percent, Latin America/Canada up 19 percent, Europe up 11 percent and the U.S. up 10 percent.
· Operating income of $369 million, with operating margin of 29.4 percent.
Consumer and Office
· Sales of $1.0 billion, up 7.0 percent in local currency, including 2.2 percent from acquisitions.
· Double-digit local-currency sales growth in the office supply business, driven by a combination of organic growth and acquisitions (A-One).
· All other businesses posted positive local-currency growth in the quarter.
· Sales rose in all major geographies, led by Asia Pacific up 31 percent and Latin America/Canada up 15 percent.
· Operating income of $215 million with margins of 21.5 percent.
Display and Graphics
· Sales of $943 million, up 6.4 percent in local-currency.
· Double-digit local-currency sales growth in the commercial graphics and architectural markets businesses; single-digit growth in optical films and traffic safety systems.
· Sales increased in all geographic regions, led by the U.S. at 18 percent and Latin America/Canada at 15 percent.
· Operating income of $230 million; operating margin of 24.4 percent.
Safety, Security and Protection Services
· Sales rose 11.3 percent in local currency to $929 million, including 6.3 percent from acquisitions; H1N1-related comps reduced sales growth by 6.5 percent.
· Double-digit local-currency growth in security systems, track and trace and corrosion protection products; also drove double-digit local-currency growth in personal protection products, adjusting for H1N1-related respirator demand in 2010.
· All geographic regions posted sales growth, led by Asia Pacific at 24 percent and Latin America/Canada at 20 percent.
· Operating income rose 9.1 percent to $199 million; operating margin of 21.4 percent.
Electro and Communications
· Sales of $836 million, up 17.1 percent in local currency.
· Sixth consecutive quarter of double-digit local currency growth in electronics-related businesses; electrical products business also drove a double-digit increase; all other businesses up year-on-year.
· All geographic regions posted double-digit sales growth, led by Asia Pacific at 25 percent and Latin America/Canada at 23 percent.
· Operating income increased 21.4 percent to $178 million; operating margin up slightly year-on-year to 21.3 percent.
George W. Buckley, 3M chairman, president and chief executive officer, and David W. Meline, senior vice president, finance and chief financial officer, will conduct an investor teleconference at 9 a.m. EDT (8 a.m. CDT) today. Investors can access this conference via the following:
· Live webcast at http://investor.3M.com.
· Live telephone:
Call 800-762-2596 within the U.S. or 212-231-2916 outside the U.S. The access code for both is 21486212. Please join the call at least ten minutes before the start time.
· Webcast replay:
Go to 3Ms Investor Relations website at http://investor.3M.com and click on the Quarterly Earnings section under the Webcasts and Presentations section.
· Telephone replay:
Call 800-633-8284 (for both U.S. and outside the U.S.; access code is 21486212).
The telephone replay will be available until 10 a.m. CDT on May 1, 2011.
Forward-Looking Statements
This news release contains forward-looking information about 3Ms 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, project, intend, plan, believe, will, 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 and capital markets conditions and other factors beyond the Companys control, including natural and other disasters affecting the operations of the Company or its customers; (2) the Companys 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 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; and (9) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the companys Annual Report on Form 10-K for the year ended December 31, 2010. Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Annual Report under Cautionary Note Concerning Factors That May Affect Future Results and Risk Factors in Part I, Items 1 and 1A, respectively. 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.
3M Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per-share amounts)
(Unaudited)
|
|
Three-months ended |
| ||||
|
|
2011 |
|
2010 |
| ||
Net sales |
|
$ |
7,311 |
|
$ |
6,348 |
|
Operating expenses |
|
|
|
|
| ||
Cost of sales |
|
3,802 |
|
3,238 |
| ||
Selling, general and administrative expenses |
|
1,533 |
|
1,323 |
| ||
Research, development and related expenses |
|
398 |
|
342 |
| ||
Total operating expenses |
|
5,733 |
|
4,903 |
| ||
Operating income |
|
1,578 |
|
1,445 |
| ||
Interest expense and income |
|
|
|
|
| ||
Interest expense |
|
43 |
|
48 |
| ||
Interest income |
|
(10 |
) |
(6 |
) | ||
Total interest expense (income) |
|
33 |
|
42 |
| ||
Income before income taxes |
|
1,545 |
|
1,403 |
| ||
Provision for income taxes |
|
442 |
|
448 |
| ||
Net income including noncontrolling interest |
|
$ |
1,103 |
|
$ |
955 |
|
Less: Net income attributable to noncontrolling interest |
|
22 |
|
25 |
| ||
Net income attributable to 3M |
|
$ |
1,081 |
|
$ |
930 |
|
Weighted average 3M common shares outstanding basic |
|
711.5 |
|
711.8 |
| ||
Earnings per share attributable to 3M common shareholders basic |
|
$ |
1.52 |
|
$ |
1.31 |
|
Weighted average 3M common shares outstanding diluted |
|
726.4 |
|
723.5 |
| ||
Earnings per share attributable to 3M common shareholders diluted |
|
$ |
1.49 |
|
$ |
1.29 |
|
Cash dividends paid per 3M common share |
|
$ |
0.55 |
|
$ |
0.525 |
|
3M Company and Subsidiaries
SUPPLEMENTAL CONSOLIDATED STATEMENT OF INCOME INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Millions, except per-share amounts)
(Unaudited)
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the company also discusses non-GAAP measures that exclude special items. Operating income, net income attributable to 3M (hereafter referred to as net income), and diluted earnings per share attributable to 3M common shareholders (hereafter referred to as diluted earnings per share) are all measures for which 3M provides the reported GAAP measure and an adjusted measure (excluding special items). Special items are not in accordance with, nor are they a substitute for, GAAP measures. Special items represent significant charges or credits that are important to an understanding of the companys ongoing operations. The company uses these non-GAAP measures to evaluate and manage the companys operations. The company believes that discussion of results excluding special items provides a useful analysis of ongoing operating trends. The determination of special items may not be comparable to similarly titled measures used by other companies.
The reconciliation provided below reconciles the non-GAAP financial measures with the most directly comparable GAAP financial measures for the three-months ended March 31, 2010. There were no special items for the three-months ended March 31, 2011.
|
|
Three-months ended |
| |||||||
|
|
Operating |
|
Net |
|
Diluted |
| |||
Reported GAAP measure |
|
$ |
1,445 |
|
$ |
930 |
|
$ |
1.29 |
|
|
|
|
|
|
|
|
| |||
Special items: |
|
|
|
|
|
|
| |||
Medicare tax change (a) |
|
|
|
84 |
|
0.11 |
| |||
Adjusted Non-GAAP measure |
|
$ |
1,445 |
|
$ |
1,014 |
|
$ |
1.40 |
|
(a) The first quarter of 2010 includes a one-time, non-cash income tax charge of $84 million, or 11 cents per diluted share, resulting from the March 2010 enactment of the Patient Protection and Affordable Care Act, including modifications made in the Health Care and Education Reconciliation Act of 2010 (collectively, the Act). The charge is due to a reduction in the value of the Companys deferred tax asset as a result of the Acts change to the tax treatment of Medicare Part D reimbursements.
3M Company and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(Unaudited)
|
|
Mar. 31, |
|
Dec. 31, |
|
Mar. 31, |
| |||
ASSETS |
|
|
|
|
|
|
| |||
Current assets |
|
|
|
|
|
|
| |||
Cash and cash equivalents |
|
$ |
2,747 |
|
$ |
3,377 |
|
$ |
2,848 |
|
Marketable securities current |
|
1,285 |
|
1,101 |
|
1,759 |
| |||
Accounts receivable net |
|
4,209 |
|
3,615 |
|
3,569 |
| |||
Inventories |
|
3,489 |
|
3,155 |
|
2,798 |
| |||
Other current assets |
|
915 |
|
967 |
|
1,132 |
| |||
Total current assets |
|
12,645 |
|
12,215 |
|
12,106 |
| |||
Marketable securities non-current |
|
360 |
|
540 |
|
580 |
| |||
Investments |
|
160 |
|
146 |
|
118 |
| |||
Property, plant and equipment net |
|
7,503 |
|
7,279 |
|
6,859 |
| |||
Prepaid pension benefits |
|
78 |
|
74 |
|
83 |
| |||
Goodwill, intangible assets and other assets |
|
10,383 |
|
9,902 |
|
8,276 |
| |||
Total assets |
|
$ |
31,129 |
|
$ |
30,156 |
|
$ |
28,022 |
|
|
|
|
|
|
|
|
| |||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
| |||
Current liabilities |
|
|
|
|
|
|
| |||
Short-term borrowings and current portion of long-term debt |
|
$ |
1,133 |
|
$ |
1,269 |
|
$ |
698 |
|
Accounts payable |
|
1,815 |
|
1,662 |
|
1,582 |
| |||
Accrued payroll |
|
479 |
|
778 |
|
498 |
| |||
Accrued income taxes |
|
393 |
|
358 |
|
550 |
| |||
Other current liabilities |
|
2,080 |
|
2,022 |
|
1,820 |
| |||
Total current liabilities |
|
5,900 |
|
6,089 |
|
5,148 |
| |||
Long-term debt |
|
4,486 |
|
4,183 |
|
5,080 |
| |||
Pension and postretirement benefits |
|
1,964 |
|
2,013 |
|
2,164 |
| |||
Other liabilities |
|
1,892 |
|
1,854 |
|
1,779 |
| |||
Total liabilities |
|
$ |
14,242 |
|
$ |
14,139 |
|
$ |
14,171 |
|
|
|
|
|
|
|
|
| |||
Total equity |
|
$ |
16,887 |
|
$ |
16,017 |
|
$ |
13,851 |
|
Shares outstanding |
|
|
|
|
|
|
| |||
March 31, 2011: 710,577,360 shares |
|
|
|
|
|
|
| |||
December 31, 2010: 711,977,608 shares |
|
|
|
|
|
|
| |||
March 31, 2010: 713,068,068 shares |
|
|
|
|
|
|
| |||
Total liabilities and equity |
|
$ |
31,129 |
|
$ |
30,156 |
|
$ |
28,022 |
|
3M Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in millions)
(Unaudited)
|
|
Three-months ended |
| ||||
|
|
March 31, |
| ||||
|
|
2011 |
|
2010 |
| ||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
$ |
733 |
|
$ |
1,082 |
|
Cash flows from investing activities: |
|
|
|
|
| ||
Purchases of property, plant and equipment |
|
(231 |
) |
(157 |
) | ||
Acquisitions, net of cash acquired |
|
(471 |
) |
(17 |
) | ||
Purchases and proceeds from sale or maturities of marketable securities and investments net |
|
(18 |
) |
(753 |
) | ||
Other investing activities |
|
(37 |
) |
(60 |
) | ||
NET CASH USED IN INVESTING ACTIVITIES |
|
(757 |
) |
(987 |
) | ||
Cash flows from financing activities: |
|
|
|
|
| ||
Change in debt |
|
15 |
|
(38 |
) | ||
Purchases of treasury stock |
|
(680 |
) |
(20 |
) | ||
Reissuances of treasury stock |
|
378 |
|
151 |
| ||
Dividends paid to shareholders |
|
(392 |
) |
(374 |
) | ||
Other financing activities |
|
15 |
|
6 |
| ||
NET CASH USED IN FINANCING ACTIVITIES |
|
(664 |
) |
(275 |
) | ||
|
|
|
|
|
| ||
Effect of exchange rate changes on cash and cash equivalents |
|
58 |
|
(12 |
) | ||
|
|
|
|
|
| ||
Net increase (decrease) in cash and cash equivalents |
|
(630 |
) |
(192 |
) | ||
Cash and cash equivalents at beginning of year |
|
3,377 |
|
3,040 |
| ||
Cash and cash equivalents at end of period |
|
$ |
2,747 |
|
$ |
2,848 |
|
3M Company and Subsidiaries
SUPPLEMENTAL CASH FLOW AND
OTHER SUPPLEMENTAL FINANCIAL INFORMATION
(Dollars in millions)
(Unaudited)
|
|
Three-months ended |
| ||||
|
|
March 31, |
| ||||
|
|
2011 |
|
2010 |
| ||
|
|
|
|
|
| ||
NON-GAAP MEASURES |
|
|
|
|
| ||
Free Cash Flow: |
|
|
|
|
| ||
Net cash provided by operating activities |
|
$ |
733 |
|
$ |
1,082 |
|
Purchases of property, plant and equipment |
|
(231 |
) |
(157 |
) | ||
Free Cash Flow (b) |
|
$ |
502 |
|
$ |
925 |
|
(b) Free cash flow is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies. The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The company believes free cash flow is a useful measure of performance and uses this measure as an indication of the strength of the company and its ability to generate cash.
|
|
March 31, |
| ||
|
|
2011 |
|
2010 |
|
OTHER NON-GAAP MEASURES: |
|
|
|
|
|
Net Working Capital Turns (c) |
|
5.0 |
|
5.3 |
|
(c) The company uses various working capital measures that place emphasis and focus on certain working capital assets and liabilities. 3Ms net working capital index is defined as quarterly net sales multiplied by four, divided by ending net accounts receivable plus inventory less accounts payable. This measure is not recognized under U.S. GAAP and may not be comparable to similarly titled measures used by other companies.
3M Company and Subsidiaries
SALES CHANGE ANALYSIS
(Unaudited)
Sales Change Analysis
By Geographic Area
|
|
Three-Months Ended March 31, 2011 |
| ||||||||
|
|
|
|
|
|
Europe, |
|
|
|
|
|
|
|
|
|
|
|
Middle |
|
Latin |
|
|
|
|
|
United |
|
Asia- |
|
East and |
|
America/ |
|
World- |
|
|
|
States |
|
Pacific |
|
Africa |
|
Canada |
|
Wide |
|
Volume organic |
|
6.1 |
% |
14.2 |
% |
6.4 |
% |
8.4 |
% |
8.9 |
% |
Price |
|
0.7 |
|
(1.7 |
) |
0.6 |
|
2.3 |
|
0.1 |
|
Organic local-currency sales |
|
6.8 |
|
12.5 |
|
7.0 |
|
10.7 |
|
9.0 |
|
Acquisitions |
|
3.4 |
|
3.1 |
|
3.5 |
|
1.6 |
|
3.2 |
|
Local-currency sales |
|
10.2 |
|
15.6 |
|
10.5 |
|
12.3 |
|
12.2 |
|
Divestitures |
|
|
|
|
|
|
|
|
|
|
|
Translation |
|
|
|
5.4 |
|
2.6 |
|
7.2 |
|
3.0 |
|
Total sales change |
|
10.2 |
% |
21.0 |
% |
13.1 |
% |
19.5 |
% |
15.2 |
% |
Worldwide
Sales Change Analysis
By Business Segment
|
|
Three-Months Ended March 31, 2011 |
| ||||||||||
|
|
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
local- |
|
|
|
Local- |
|
|
|
|
|
Total |
|
|
|
currency |
|
Acqui- |
|
currency |
|
Divest- |
|
Trans- |
|
sales |
|
|
|
sales |
|
sitions |
|
sales |
|
itures |
|
lation |
|
change |
|
Industrial and Transportation |
|
13.3 |
% |
3.6 |
% |
16.9 |
% |
|
% |
3.4 |
% |
20.3 |
% |
Health Care |
|
4.6 |
% |
5.1 |
% |
9.7 |
% |
|
% |
3.0 |
% |
12.7 |
% |
Display and Graphics |
|
6.4 |
% |
|
% |
6.4 |
% |
|
% |
2.1 |
% |
8.5 |
% |
Consumer and Office |
|
4.8 |
% |
2.2 |
% |
7.0 |
% |
|
% |
2.6 |
% |
9.6 |
% |
Safety, Security and Protection Services |
|
5.0 |
% |
6.3 |
% |
11.3 |
% |
|
% |
3.1 |
% |
14.4 |
% |
Electro and Communications |
|
17.1 |
% |
|
% |
17.1 |
% |
|
% |
3.4 |
% |
20.5 |
% |
3M Company and Subsidiaries
BUSINESS SEGMENTS
(Dollars in millions)
(Unaudited)
Effective in the first quarter of 2011, 3M made certain product moves between its business segments in its continuing effort to drive growth by aligning businesses around markets and customers. There were no changes impacting business segments related to product moves for the Display and Graphics segment or the Consumer and Office segment. In addition, 3M results in total did not change. The financial information presented herein reflects for all periods presented the impact of product moves between business segments, which are summarized as follows:
Certain pressure sensitive adhesives products within the Industrial Adhesives and Tapes Division and shock absorption and vibration dampening products used in electronics within the Aerospace and Aircraft Maintenance Department (both within the Industrial and Transportation business segment) were transferred to the Electronic Markets Materials Division (part of the Electro and Communications business segment). In addition, certain medical respirator products within the Infection Prevention Division (part of the Health Care business segment) were transferred to the Occupational Health and Environmental Safety Division (within the Safety, Security and Protection Services business segment). The preceding product moves resulted in decreases in net sales for the total year 2010 of $152 million in the Industrial and Transportation business segment and $8 million in the Health Care business segment. These decreases were offset by increases in net sales for the total year 2010 of $121 million for the Electro and Communications business segment and $8 million for the Safety, Security and Protection Services business segment along with a $31 million change in the elimination of dual credit sales and corporate and unallocated.
BUSINESS SEGMENT INFORMATION
NET SALES
(Millions)
|
|
Three-months ended |
| ||||
|
|
March 31, |
| ||||
|
|
2011 |
|
2010 |
| ||
|
|
|
|
|
| ||
Industrial and Transportation |
|
$ |
2,450 |
|
$ |
2,036 |
|
Health Care |
|
1,255 |
|
1,114 |
| ||
Display and Graphics |
|
943 |
|
869 |
| ||
Consumer and Office |
|
1,000 |
|
912 |
| ||
Safety, Security and Protection Services |
|
929 |
|
813 |
| ||
Electro and Communications |
|
836 |
|
694 |
| ||
Corporate and Unallocated |
|
5 |
|
4 |
| ||
Elimination of Dual Credit |
|
(107 |
) |
(94 |
) | ||
Total Company |
|
$ |
7,311 |
|
$ |
6,348 |
|
BUSINESS SEGMENT INFORMATION
OPERATING INCOME
(Millions)
|
|
Three-months ended |
| ||||
|
|
March 31, |
| ||||
|
|
2011 |
|
2010 |
| ||
|
|
|
|
|
| ||
Industrial and Transportation |
|
$ |
516 |
|
$ |
443 |
|
Health Care |
|
369 |
|
346 |
| ||
Display and Graphics |
|
230 |
|
212 |
| ||
Consumer and Office |
|
215 |
|
219 |
| ||
Safety, Security and Protection Services |
|
199 |
|
182 |
| ||
Electro and Communications |
|
178 |
|
147 |
| ||
Corporate and Unallocated |
|
(105 |
) |
(83 |
) | ||
Elimination of Dual Credit |
|
(24 |
) |
(21 |
) | ||
Total Company |
|
$ |
1,578 |
|
$ |
1,445 |
|
About 3M
3M captures the spark of new ideas and transforms them into thousands of ingenious products. Our culture of creative collaboration inspires a never-ending stream of powerful technologies that make life better. 3M is the innovation company that never stops inventing.
With $27 billion in sales, 3M employs about 80,000 people worldwide and has operations in more than 65 countries.
Investor Contacts: |
Matt Ginter |
Media Contact: |
Jacqueline Berry |
|
3M |
|
3M |
|
(651) 733-8206 |
|
(651) 733-3611 |
|
|
|
|
|
Bruce Jermeland |
|
|
|
3M |
|
|
|
(651) 733-1807 |
|
|
|
|
|
|
From: |
|
|
|
3M Public Relations and Corporate Communications |
|
| |
3M Center, Building 225-1S-15 |
|
| |
St. Paul, MN 55144-1000 |
|
|