3M (NYSE:MMM) today announced a 14.4 percent increase in first-quarter earnings per share.
The company reported net income of $809 million, or $1.03 per share, versus $722 million, or $0.90 per share in the first quarter of 2004. Net income increased 12.0 percent.
"Broad-based productivity improvements achieved through our corporate initiatives and solid growth in key areas, like optical films and health care, helped us deliver over 14 percent earnings per share growth in the first quarter," said W. James McNerney, Jr., 3M chairman and CEO. "Improved operational efficiency, sales growth, and pricing were key to overcoming slow economic growth in Western Europe and Japan and continued raw material price pressure."
Worldwide sales in the first quarter totaled $5.17 billion, 4.6 percent higher than in the year-earlier quarter. Local currency sales increased 2.3 percent, with selling prices contributing 0.5 percent. Currency effects increased sales by 2.3 percent. Local-currency sales increased 5.2 percent in Health Care; 4.5 percent in Transportation; 3.0 percent in Safety, Security and Protection Services; 2.6 percent in Industrial; and 0.6 percent in Display and Graphics; and declined 0.5 percent in Consumer and Office, and 1.4 percent in Electro and Communications.
"Looking ahead, we will continue to leverage sales growth and productivity improvements into sustainable earnings growth despite continued slow growth in the mature economies," McNerney said. "We expect to deliver higher organic growth rates the rest of this year through new product sales enabled by our diverse technology platforms; our Acceleration initiative; growth drivers, like LCD films; and our strong presence in fast-growth markets like China and Eastern Europe."
3M also reaffirmed its earnings guidance for 2005. For the year, the company expects earnings to be within a range of $4.15 to $4.25 per share. The company expects full-year local currency growth of 5 to 8 percent. Second-quarter earnings are expected to be in the range of $1.08 to $1.10 per share, with local currency growth of 4 to 7 percent.
Patrick D. Campbell, senior vice president and chief financial officer, will conduct an investor teleconference at 9 a.m. Eastern Time (8 a.m. Central Time) today. Investors can access a webcast of this conference, along with related charts and materials, at http://investor.3M.com.
Forward-Looking Statements
This news release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) about the company's financial results and estimates, business prospects, and products under development 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," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic conditions; (2) foreign currency exchange rates and fluctuations in those rates; (3) the timing and acceptance of new product offerings; (4) the availability and cost of purchased components and materials, including oil-derived compounds; (5) 3M's ability to successfully integrate and obtain the anticipated synergies from acquisitions and strategic alliances; (6) generating less operating income from its corporate initiatives than estimated; and (7) legal proceedings, including the outcome of and information derived from pending Congressional action concerning asbestos-related litigation and other significant developments that could occur in the legal proceedings described in the company's Annual Report on Form 10-K for the year ended December 31, 2004 (the "Report"). Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Report. 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 release as a result of new information or future events or developments.
About 3M - A Global, Diversified Technology Company
Every day, 3M people find new ways to make amazing things happen. Wherever they are, whatever they do, the company's customers know they can rely on 3M to help make their lives better. 3M's brands include Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti. Serving customers in more than 200 countries around the world, the company's 67,000 people use their expertise, technologies and global strength to lead in major markets including consumer and office; display and graphics; electronics and telecommunications; safety, security and protection services; health care; industrial and transportation. For more information, including the latest product and technology news, visit www.3M.com.
Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti are trademarks of 3M.
3M Company and Subsidiaries
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||
| (Millions, except per-share amounts) | ||||||||||
| (Unaudited) | ||||||||||
| Three-months ended | ||||||||||
| March 31 | ||||||||||
| 2005 | 2004 | |||||||||
| Net sales | $ | 5,166 | $ | 4,939 | ||||||
| Operating expenses | ||||||||||
| Cost of sales | 2,537 | 2,436 | ||||||||
| Selling, general and administrative | ||||||||||
| expenses | 1,114 | 1,104 | ||||||||
| Research, development and related | ||||||||||
| expenses | 291 | 282 | ||||||||
| Total | 3,942 | 3,822 | ||||||||
| Operating income | 1,224 | 1,117 | ||||||||
| Interest expense and income | ||||||||||
| Interest expense | 20 | 19 | ||||||||
| Interest income | (16 | ) | (10 | ) | ||||||
| Total | 4 | 9 | ||||||||
| Income before income taxes and minority | ||||||||||
| interest | 1,220 | 1,108 | ||||||||
| Provision for income taxes | 396 | 366 | ||||||||
| Minority interest | 15 | 20 | ||||||||
| Net income | $ | 809 | $ | 722 | ||||||
| Weighted average common shares | ||||||||||
| outstanding - basic | 771.7 | 782.9 | ||||||||
| Earnings per share - basic | $ | 1.05 | $ | 0.92 | ||||||
| Weighted average common shares | ||||||||||
| outstanding - diluted | 787.0 | 799.5 | ||||||||
| Earnings per share - diluted | $ | 1.03 | $ | 0.90 | ||||||
| Cash dividends paid per common share | $ | 0.42 | $ | 0.36 | ||||||
| 3M Company and Subsidiaries | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||||
| (Dollars in millions) | ||||||||||||
| (Unaudited) | ||||||||||||
| Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||
| ASSETS | 2005 | 2004 | 2004 | |||||||||
| Current assets |
|
|
|
|||||||||
| Cash and cash equivalents | $ | 2,669 | $ | 2,757 | $ | 1,818 | ||||||
| Accounts receivable - net | 2,899 | 2,792 | 2,904 | |||||||||
| Inventories | 1,980 | 1,897 | 1,880 | |||||||||
| Other current assets | 1,374 | 1,274 | 1,461 | |||||||||
| Total current assets | 8,922 | 8,720 | 8,063 | |||||||||
| Investments | 280 | 227 | 211 | |||||||||
| Property, plant and equipment - net | 5,624 | 5,711 | 5,512 | |||||||||
| Goodwill, intangible assets and other | ||||||||||||
| assets | 5,929 | 6,050 | 4,192 | |||||||||
| Total assets | $ | 20,755 | $ | 20,708 | $ | 17,978 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Short-term borrowings and current | ||||||||||||
| portion of long-term debt | $ | 2,201 | $ | 2,094 | $ | 1,106 | ||||||
| Accounts payable | 1,201 | 1,168 | 1,066 | |||||||||
| Accrued payroll | 492 | 487 | 471 | |||||||||
| Accrued income taxes | 950 | 867 | 986 | |||||||||
| Other current liabilities | 1,393 | 1,455 | 1,534 | |||||||||
| Total current liabilities | 6,237 | 6,071 | 5,163 | |||||||||
| Long-term debt | 707 | 727 | 1,718 | |||||||||
| Other liabilities | 3,521 | 3,532 | 2,996 | |||||||||
| Total liabilities | 10,465 | 10,330 | 9,877 | |||||||||
| Total stockholders' equity - net | 10,290 | 10,378 | 8,101 | |||||||||
| Shares outstanding | ||||||||||||
| March 31, 2005: 769,570,205 shares | ||||||||||||
| December 31, 2004: 773,518,281 shares | ||||||||||||
| March 31, 2004: 782,114,154 shares |
|
|
|
|||||||||
| Total liabilities and stockholders' | ||||||||||||
| equity | $ | 20,755 | $ | 20,708 | $ | 17,978 | ||||||
| 3M Company and Subsidiaries | ||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| (Dollars in millions) | ||||||||
| (Unaudited) | ||||||||
| Three-months ended | ||||||||
| March 31 | ||||||||
| 2005 | 2004 | |||||||
| SUMMARY OF CASH FLOW: | ||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 1,003 | $ | 942 | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | (235) | (158) | ||||||
| Acquisitions, net of cash acquired | - | (80) | ||||||
| Other investing activities | (67) | 19 | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | (302) | (219) | ||||||
| Cash flows from financing activities: | ||||||||
| Change in debt | 107 | (133) | ||||||
| Purchases of treasury stock | (671) | (438) | ||||||
| Reissuances of treasury stock | 195 | 134 | ||||||
| Dividends paid to stockholders | (324) | (282) | ||||||
| Other financing activities | (57) | (12) | ||||||
| NET CASH USED IN FINANCING ACTIVITIES | (750) | (731) | ||||||
| Effect of exchange rate changes on cash | (39) | (10) | ||||||
| Net increase (decrease) in cash and cash equivalents | (88) | (18) | ||||||
| Cash and cash equivalents at beginning of period | 2,757 | 1,836 | ||||||
| Cash and cash equivalents at end of period | $ | 2,669 | $ | 1,818 | ||||
| 3M Company and Subsidiaries | ||||||||||
| SUPPLEMENTAL CASH FLOW AND | ||||||||||
| OTHER SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||
| (Dollars in millions) | ||||||||||
| (Unaudited) | ||||||||||
| Three-months ended | ||||||||||
|
March 31 |
||||||||||
| 2005 | 2004 | |||||||||
| NON-GAAP MEASURES | ||||||||||
| Free Cash Flow: | ||||||||||
| Net cash provided by operating activities | $ | 1,003 | $ | 942 | ||||||
| Purchases of property, plant and equipment | (235 | ) | (158 | ) | ||||||
| Free Cash Flow (a) | $ | 768 | $ | 784 | ||||||
| Net Working Capital Turns (b) | 5.6 | 5.3 | ||||||||
(a) Free cash flow is not defined under GAAP. Therefore, it is considered a non-GAAP measure. Non-GAAP measures should not be considered a substitute for income or cash flow data prepared in accordance with U.S. 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. (b) The company uses non-GAAP measures that place emphasis and focus on certain working capital assets and liabilities. 3M's 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. generally accepted accounting principles and may not be comparable to similarly titled measures used by other companies.
(b) The company uses non-GAAP measures that place emphasis and focus on certain working capital assets and liabilities. 3M's 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. generally accepted accounting principles and may not be comparable to similarly titled measures used by other companies.
| 3M Company and Subsidiaries | ||||||||||||
| SALES CHANGE ANALYSIS | ||||||||||||
| (Unaudited) | ||||||||||||
| Three-Months Ended March 31, 2005 | ||||||||||||
| Sales Change Analysis | United | Inter- | ||||||||||
| By Geographic Area | States | national | Worldwide | |||||||||
| Volume - core | 1.1 | % | 1.8 | % | 1.5 | % | ||||||
| Volume - acquisitions | 0.4 | 0.2 | 0.3 | |||||||||
| Volume - total | 1.5 | 2.0 | 1.8 | |||||||||
| Price | 1.7 | (0.2 | ) | 0.5 | ||||||||
| Total local-currency sales | 3.2 | 1.8 | 2.3 | |||||||||
| Translation | - | 3.7 | 2.3 | |||||||||
| Total sales change | 3.2 | % | 5.5 | % | 4.6 | % | ||||||
| Worldwide | Local- | Total | ||||||||||
| Sales Change Analysis | currency | Trans- | Sales | |||||||||
| By Business Segment | Sales | lation | Change | |||||||||
| Health Care | 5.2 | % | 2.7 | % | 7.9 | % | ||||||
| Industrial | 2.6 | 2.9 | 5.5 | |||||||||
| Display and Graphics | 0.6 | 1.4 | 2.0 | |||||||||
| Consumer and Office | (0.5 | ) | 2.3 | 1.8 | ||||||||
| Safety, Security and | ||||||||||||
| Protection Services | 3.0 | 2.6 | 5.6 | |||||||||
| Electro and Communications | (1.4 | ) | 2.4 | 1.0 | ||||||||
| Transportation | 4.5 | 2.8 | 7.3 | |||||||||
| 3M Company and Subsidiaries |
| BUSINESS SEGMENTS |
| (Dollars in millions) |
| (Unaudited) |
Effective January 1, 2005, as part of the continuing effort to drive growth by aligning businesses around markets and customers, the Electronics Markets Materials Division and certain high temperature and display tapes (2004 sales of approximately $350 million) within the Industrial Business transferred to the Electro and Communications Business, and the converter markets product line (2004 sales of approximately $10 million) within the Transportation Business transferred to the Display and Graphics Business. Internal management reporting for these business segment transfers commenced January 1, 2005, with segment information for all periods presented adjusted to reflect the new segment structure.
| BUSINESS | ||||||||||
| SEGMENT | Three-months ended | |||||||||
| INFORMATION | March 31 | |||||||||
| (Millions) | 2005 | 2004 | ||||||||
| NET SALES | ||||||||||
| Health Care | $ | 1,113 | $ | 1,031 | ||||||
| Industrial | 904 | 856 | ||||||||
| Display and Graphics | 862 | 845 | ||||||||
| Consumer and Office | 699 | 686 | ||||||||
| Safety, Security and Protection Services | 557 | 527 | ||||||||
| Electro and Communications | 557 | 551 | ||||||||
| Transportation | 467 | 435 | ||||||||
| Corporate and Unallocated | 7 | 8 | ||||||||
| Total Company | $ | 5,166 | $ | 4,939 | ||||||
| OPERATING INCOME | ||||||||||
| Health Care | $ | 309 | $ | 262 | ||||||
| Industrial | 184 | 154 | ||||||||
| Display and Graphics | 286 | 294 | ||||||||
| Consumer and Office | 122 | 122 | ||||||||
| Safety, Security and Protection Services | 133 | 125 | ||||||||
| Electro and Communications | 103 | 77 | ||||||||
| Transportation | 126 | 119 | ||||||||
| Corporate and Unallocated | (39 | ) | (36 | ) | ||||||
| Total Company | $ | 1,224 | $ | 1,117 | ||||||
| 3M Company and Subsidiaries |
| SUPPLEMENTAL UNAUDITED BUSINESS SEGMENT INFORMATION |
| (Dollars in millions) |
| (Unaudited) |
3M is also including supplemental unaudited business segment information on both an annual and quarterly basis for the years ended December 31, 2004, 2003 and 2002 reflecting adjusted historical information for the new segment structure. The company has begun reporting results under this new structure effective January 1, 2005.
Supplemental Unaudited Annual Business Segment Information Based on Structure Effective January 1, 2005:
| Business Segment | Depr. | Capital | ||||||||||||||||
| Information | Net | Operating | and | Expendi- | ||||||||||||||
| (Millions) | Sales | Income | Assets | Amort. | tures | |||||||||||||
| Health Care | 2004 | $4,230 | $1,123 | $2,636 | $179 | $165 | ||||||||||||
| 2003 | 3,995 | 1,027 | 2,544 | 169 | 144 | |||||||||||||
| 2002 | 3,560 | 900 | 2,409 | 166 | 183 | |||||||||||||
| Industrial | 2004 | 3,444 | 610 | 2,451 | 181 | 154 | ||||||||||||
| 2003 | 3,070 | 425 | 2,390 | 185 | 139 | |||||||||||||
| 2002 | 2,943 | 478 | 2,447 | 168 | 154 | |||||||||||||
| Display and Graphics | 2004 | 3,416 | 1,133 | 2,647 | 178 | 261 | ||||||||||||
| 2003 | 2,970 | 886 | 2,570 | 159 | 126 | |||||||||||||
| 2002 | 2,237 | 535 | 2,476 | 135 | 84 | |||||||||||||
| Consumer and Office | 2004 | 2,861 | 542 | 1,468 | 104 | 106 | ||||||||||||
| 2003 | 2,607 | 460 | 1,378 | 108 | 86 | |||||||||||||
| 2002 | 2,444 | 448 | 1,354 | 108 | 90 | |||||||||||||
| Safety, Security and | 2004 | 2,125 | 491 | 1,317 | 101 | 99 | ||||||||||||
| Protection Services | 2003 | 1,928 | 437 | 1,139 | 100 | 46 | ||||||||||||
| 2002 | 1,686 | 338 | 1,097 | 97 | 105 | |||||||||||||
| Electro and | 2004 | 2,224 | 342 | 1,801 | 163 | 95 | ||||||||||||
| Communications | 2003 | 2,101 | 288 | 1,833 | 165 | 65 | ||||||||||||
| 2002 | 2,034 | 262 | 1,871 | 158 | 81 | |||||||||||||
| Transportation | 2004 | 1,674 | 426 | 887 | 63 | 56 | ||||||||||||
| 2003 | 1,531 | 388 | 872 | 68 | 64 | |||||||||||||
| 2002 | 1,380 | 331 | 846 | 66 | 58 | |||||||||||||
| Corporate and | 2004 | 37 | (89) | 7,501 | 30 | 1 | ||||||||||||
| Unallocated | 2003 | 30 | (198) | 4,874 | 10 | 7 | ||||||||||||
| 2002 | 48 | (246) | 2,829 | 56 | 8 | |||||||||||||
| Total Company | 2004 | $20,011 | $4,578 | $20,708 | $999 | $937 | ||||||||||||
| 2003 | 18,232 | 3,713 | 17,600 | 964 | 677 | |||||||||||||
| 2002 | 16,332 | 3,046 | 15,329 | 954 | 763 | |||||||||||||
Segment assets for the seven operating business segments (excluding Corporate and Unallocated) primarily include accounts receivable; inventory; property, plant and equipment - net; goodwill and intangible assets; and other miscellaneous assets. Assets included in Corporate and Unallocated principally are cash and cash equivalents; insurance receivables; deferred income taxes; certain investments and other assets, including prepaid pension assets; and certain unallocated property, plant and equipment. Corporate and Unallocated assets increased approximately $2.6 billion in 2004, primarily due to increases in prepaid pension assets ($2.0 billion) and increases in cash and cash equivalents ($0.9 billion), with partial offsets in other asset accounts. Corporate and Unallocated assets increased approximately $2.0 billion in 2003 due to increases in cash and cash equivalents ($1.2 billion), increases in other current assets and other assets primarily related to higher insurance receivables and prepaid items ($500 million), and goodwill increases related to the 2003 acquisition of an additional 25% of Sumitomo 3M ($300 million). For management reporting purposes, corporate goodwill (which at December 31, 2004, totaled approximately $360 million), is not allocated to the seven operating business segments. Corporate goodwill has been allocated to the respective market segments as required by SFAS No. 142 for impairment testing.
Corporate and Unallocated operating income principally includes corporate investment gains and losses, certain derivative gains and losses, insurance-related gains and losses, certain litigation expenses, corporate restructuring program charges and other miscellaneous items. Because this category includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. In 2004, Corporate and Unallocated operating income includes increases of $40 million in the respirator mask/asbestos litigation reserves, partially offset by a $20 million increase in the associated receivables resulting in a net cost of $20 million, and also includes a $6 million increase in implant litigation reserves and a $10 million decrease in implant receivables resulting in a net cost of $16 million. In 2003, this includes a pre-tax charge of $93 million recorded during the first quarter related to an adverse ruling associated with a lawsuit filed against 3M in 1997 by LePage's Inc. Corporate and unallocated operating income in 2003 also includes increases of $231 million in the respirator mask/asbestos litigation reserves, partially offset by a $205 million increase in the associated receivables, resulting in a net cost of $26 million. In 2002, Corporate and Unallocated operating income includes charges of $202 million related to the 2001/2002 corporate restructuring program. Depreciation and amortization of $954 million included accelerated depreciation (shortened lives) of $47 million related to the restructuring plan (recorded in Corporate and Unallocated).
Supplemental Unaudited Quarterly Business Segment Information Based on Structure Effective January 1, 2005:
| NET SALES | First | Second | Third | Fourth | Total | ||||||||||||||||||
| (Millions) | Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||||
| Health Care | 2004 | $ | 1,031 | $ | 1,049 | $ | 1,035 | $ |
1,115 |
$ |
4,230 | ||||||||||||
| 2003 | 946 | 1,017 | 1,012 | 1,020 | 3,995 | ||||||||||||||||||
| 2002 | 845 | 896 | 901 | 918 | 3,560 | ||||||||||||||||||
| Industrial | 2004 | 856 | 867 | 852 | 869 | 3,444 | |||||||||||||||||
| 2003 | 756 | 764 | 759 | 791 | 3,070 | ||||||||||||||||||
| 2002 | 707 | 750 | 743 | 743 | 2,943 | ||||||||||||||||||
| Display and Graphics | 2004 | 845 | 884 | 843 | 844 | 3,416 | |||||||||||||||||
| 2003 | 663 | 721 | 774 | 812 | 2,970 | ||||||||||||||||||
| 2002 | 507 | 585 | 574 | 571 | 2,237 | ||||||||||||||||||
| Consumer and Office | 2004 | 686 | 675 | 737 | 763 | 2,861 | |||||||||||||||||
| 2003 | 612 | 637 | 673 | 685 | 2,607 | ||||||||||||||||||
| 2002 | 569 | 602 | 628 | 645 | 2,444 | ||||||||||||||||||
| Safety, Security and | 2004 | 527 | 547 | 525 | 526 | 2,125 | |||||||||||||||||
| Protection Services | 2003 | 458 | 518 | 482 | 470 | 1,928 | |||||||||||||||||
| 2002 | 413 | 445 | 423 | 405 | 1,686 | ||||||||||||||||||
| Electro and | 2004 | 551 | 572 | 557 | 544 | 2,224 | |||||||||||||||||
| Communications | 2003 | 500 | 532 | 524 | 545 | 2,101 | |||||||||||||||||
| 2002 | 490 | 532 | 513 | 499 | 2,034 | ||||||||||||||||||
| Transportation | 2004 | 435 | 409 | 409 | 421 | 1,674 | |||||||||||||||||
| 2003 | 379 | 381 | 384 | 387 | 1,531 | ||||||||||||||||||
| 2002 | 347 | 337 | 350 | 346 | 1,380 | ||||||||||||||||||
| Corporate and | 2004 | 8 | 9 | 11 | 9 | 37 | |||||||||||||||||
| Unallocated | 2003 | 4 | 10 | 8 | 8 | 30 | |||||||||||||||||
| 2002 | 12 | 14 | 11 | 11 | 48 | ||||||||||||||||||
| Total Company | 2004 | $ | 4,939 | $ | 5,012 | $ | 4,969 | $ |
5,091 |
$ |
20,011 |
||||||||||||
| 2003 | 4,318 | 4,580 | 4,616 |
4,718 |
18,232 |
||||||||||||||||||
| 2002 | 3,890 | 4,161 | 4,143 |
4,138 |
16,332 |
||||||||||||||||||
Supplemental Unaudited Quarterly Business Segment Information Based on Structure Effective January 1, 2005:
| OPERATING INCOME | First | Second | Third | Fourth | Total | ||||||||||||||||||
| (Millions) | Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||||
| Health Care | 2004 | $ | 262 | $ | 274 | $ | 277 | $ | 310 | $ | 1,123 | ||||||||||||
| 2003 | 238 | 263 | 272 | 254 | 1,027 | ||||||||||||||||||
| 2002 | 220 | 213 | 224 | 243 | 900 | ||||||||||||||||||
| Industrial | 2004 | 154 | 158 | 157 | 141 | 610 | |||||||||||||||||
| 2003 | 122 | 96 | 106 | 101 | 425 | ||||||||||||||||||
| 2002 | 112 | 129 | 126 | 111 | 478 | ||||||||||||||||||
| Display and Graphics | 2004 | 294 | 312 | 287 | 240 | 1,133 | |||||||||||||||||
| 2003 | 182 | 210 | 251 | 243 | 886 | ||||||||||||||||||
| 2002 | 118 | 147 | 141 | 129 | 535 | ||||||||||||||||||
| Consumer and Office | 2004 | 122 | 123 | 150 | 147 | 542 | |||||||||||||||||
| 2003 | 110 | 108 | 128 | 114 | 460 | ||||||||||||||||||
| 2002 | 105 | 108 | 121 | 114 | 448 | ||||||||||||||||||
| Safety, Security and | 2004 | 125 | 136 | 123 | 107 | 491 | |||||||||||||||||
| Protection Services | 2003 | 105 | 131 | 111 | 90 | 437 | |||||||||||||||||
| 2002 | 86 | 92 | 89 | 71 | 338 | ||||||||||||||||||
| Electro and | 2004 | 77 | 89 | 92 | 84 | 342 | |||||||||||||||||
| Communications | 2003 | 58 | 77 | 75 | 78 | 288 | |||||||||||||||||
| 2002 | 51 | 82 | 70 | 59 | 262 | ||||||||||||||||||
| Transportation | 2004 | 119 | 105 | 104 | 98 | 426 | |||||||||||||||||
| 2003 | 100 | 94 | 106 | 88 | 388 | ||||||||||||||||||
| 2002 | 85 | 79 | 87 | 80 | 331 | ||||||||||||||||||
| Corporate and | 2004 | (36) | (11) | (7) | (35) | (89) | |||||||||||||||||
| Unallocated | 2003 | (134) | (19) | (19) | (26) | (198) | |||||||||||||||||
| 2002 | (64) | (164) | (7) | (11) | (246) | ||||||||||||||||||
| Total Company | 2004 | $ | 1,117 | $ | 1,186 | $ | 1,183 $ | 1,092 | $ | 4,578 | |||||||||||||
| 2003 | 781 | 960 | 1,030 | 942 | 3,713 | ||||||||||||||||||
| 2002 | 713 | 686 | 851 | 796 | 3,046 | ||||||||||||||||||
| 3M Company and Subsidiaries |
| SUPPLEMENTAL UNAUDITED GEOGRAPHIC AREA INFORMATION |
| (Dollars in millions) |
| (Unaudited) |
Effective January 1, 2005, the company realigned its reporting for the African Region, which previously was included in the Latin America/Canada Region, to the Europe and Middle East Region. 3M is including below supplemental unaudited segment information on an annual basis for the years ended December 31, 2004, 2003 and 2002 reflecting adjusted historical information for its new geographic area structure. Reporting for this new geographic area structure commenced January 1, 2005. Geographic area information, which the company uses as a secondary performance measure to manage its businesses, follows. Export sales and certain income and expense items are reported within the geographic area where the final sales to 3M customers are made.
Supplemental Unaudited Annual Geographic Area Information Based on Structure Effective January 1, 2005:
|
Geographic Area Information |
Europe, |
||||||||||||||||||||||||||
| Middle | Latin | ||||||||||||||||||||||||||
| East | America | Other | |||||||||||||||||||||||||
| United | and | Asia | and | Unallo- | Total | ||||||||||||||||||||||
| (Millions) | States | Africa | Pacific | Canada | cated | Company | |||||||||||||||||||||
| Net sales to | 2004 | $ | 7,878 | $ | 5,183 | $ | 5,168 | $ | 1,731 | $ | 51 | $ | 20,011 | ||||||||||||||
| customers | 2003 | 7,581 | 4,718 | 4,335 | 1,556 | 42 | 18,232 | ||||||||||||||||||||
| 2002 | 7,426 | 4,111 | 3,431 | 1,316 | 48 | 16,332 | |||||||||||||||||||||
| Operating | |||||||||||||||||||||||||||
| income | 2004 | $ | 1,200 | $ | 1,014 | $ | 1,874 | $ | 483 | $ | 7 | $ | 4,578 | ||||||||||||||
| 2003 | 1,213 | 809 | 1,373 | 427 | (109) | 3,713 | |||||||||||||||||||||
| 2002 | 1,180 | 704 | 1,009 | 370 | (217) | 3,046 | |||||||||||||||||||||
| Property, | |||||||||||||||||||||||||||
| plant and | 2004 | $ | 3,290 | $ | 1,288 | $ | 810 | $ | 323 | $ | - | $ | 5,711 | ||||||||||||||
| equipment - | |||||||||||||||||||||||||||
| net | 2003 | 3,342 | 1,235 | 724 | 308 | - | 5,609 | ||||||||||||||||||||
| 2002 | 3,523 | 1,139 | 676 | 283 | - | 5,621 | |||||||||||||||||||||
In 2003, operating income for other unallocated includes pre-tax charges of $93 million related to an adverse ruling in a lawsuit filed against 3M in 1997 by LePage's Inc. In 2002, operating income for other unallocated includes losses totaling $202 million related to the 2001/2002 corporate restructuring program.
3M, St. PaulInvestor Contacts:Mark Colin, 651-733-8206orBruce Jermeland, 651-733-1807orMedia Contact:Jacqueline Berry, 651-733-3611
