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3M ADOPTS NEW ACCOUNTING STANDARDS

 3M ADOPTS NEW ACCOUNTING STANDARDS
 ST. PAUL, Minn., Nov. 10 /PRNewswire/ -- 3M's (NYSE: MMM) board of


directors has elected early adoption of two new accounting standards and changed the reporting period for its international operations from a fiscal year ending Oct. 31 to a calendar year ending Dec. 31. All changes are retroactive to Jan. 1, 1992.
 The three changes will be reported as a cumulative effect of an accounting change. This one-time effect will reduce 3M's 1992 earnings by about $3 million, or two cents a share.
 The two new accounting standards are Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and SFAS No. 109, "Accounting for Income Taxes."
 In connection with the adoption of SFAS No. 106, 3M recorded a charge to first-quarter net income of $183 million, or 84 cents per share.
 Adoption of SFAS No. 109 increased first-quarter net income by $80 million, or 36 cents per share.
 The cumulative effect of the change in the reporting period for 3M's international operations increased first-quarter net income by $100 million, or 46 cents a share.
 "None of these changes affects our underlying cash balances, cash flows or business operations," said Giulio Agostini, senior vice president, Finance. "Making all three changes in 1992 limits year-to- year financial statement differences." Agostini noted that adoption of SFAS No. 106 will have only a small ongoing effect on 3M's earnings. "That's because we have been accruing for and funding a large portion of these benefit obligations for many years," he said.
 Agostini said that the adoption of SFAS No. 109 benefited 3M because "it requires us to state our deferred tax accounts at current rates, which are lower than the rates previously used to record these items."
 Harry Hammerly, executive vice president of 3M's international operations, said that synchronizing the financial reporting periods for 3M's U.S. and international operations "will improve efficiencies and provide more timely worldwide financial information."
 3M said that it will issue restated financial statements for the first three quarters of 1992 next February. The restated quarterly earnings are not expected to be materially different from those originally reported.
 CUMULATIVE EFFECT OF ACCOUNTING CHANGES
 Net Income
 (Millions) Per-Share
 SFAS No. 106 $(183) $(.84)
 SFAS No. 109 80 .36
 Change in International
 Reporting Period 100 .46
 Total $(3) $(.02)
 -0- 11/10/92
 /CONTACT: Mike Dougherty of 3M, 612-737-2666/
 (MMM) CO: 3M Company ST: Minnesota IN: MNG CPR SU: ACC


DS -- MN002 -- 9090 11/10/92 08:49 EST
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Publication:PR Newswire
Date:Nov 10, 1992
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