3M Releases Additional Information on Fourth-Quarter, Year 2001 Results.Business Editors ST. PAUL St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn.--(BUSINESS WIRE)--Jan. 23, 2002 3M, as it indicated last week in its discussion of fourth-quarter 2001 results, today issued selected financial information for the quarter and year 2001. Additional information will be included in the company's 2001 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , which will be published at a later date.
Minnesota Mining and Manufacturing Company and Subsidiaries
SALES CHANGE ANALYSIS
(Unaudited)
Fourth-Quarter 2001
U.S. Intl. Worldwide
--------- --------- ---------
Volume (6.0)% (5.2)% (5.5)%
Price 0.7 0.8 0.7
Translation -- (3.4) (1.8)
--------- --------- ---------
Total (5.3)% (7.8)% (6.6)%
========= ========= =========
Year-to-Date 2001
U.S. Intl. Worldwide
--------- --------- ---------
Volume (4.7)% 2.3 % (0.9)%
Price 0.7 0.1 0.3
Translation -- (6.2) (3.3)
--------- --------- ---------
Total (4.0)% (3.8)% (3.9)%
========= ========= =========
Minnesota Mining and Manufacturing Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(Amounts in millions, except per-share amounts)
(Unaudited)
Three months Twelve months
ended ended
December 31 December 31
---------------- -------------------
2001 2000 2001 2000
------- ------- -------- --------
Net sales $3,863 $4,136 $16,079 $16,724
------- ------- -------- --------
Operating expenses
Cost of sales 2,131 2,220 8,749 8,787
Selling, general and
administrative expenses 976 1,009 4,061 3,963
Research, development and
related expenses 262 276 1,084 1,101
Other expense (income) (88) (16) (88) (185)
------- ------- -------- --------
Total 3,281 3,489 13,806 13,666
------- ------- -------- --------
Operating income 582 647 2,273 3,058
------- ------- -------- --------
Other income and expense
Interest expense 26 30 124 111
Interest and other income (10) (11) (37) (27)
------- ------- -------- --------
Total 16 19 87 84
------- ------- -------- --------
Income before income taxes,
minority interest and
cumulative effect of
accounting change 566 628 2,186 2,974
Provision for income taxes 175 204 702 1,025
Minority interest 10 23 54 92
------- ------- -------- --------
Income before cumulative effect
of accounting change 381 401 1,430 1,857
Cumulative effect of
accounting change -- (75) -- (75)
------- ------- -------- --------
Net income $381 $326 $1,430 $1,782
======= ======= ======== ========
Weighted average common
shares outstanding - basic 391.5 394.5 394.3 395.7
Earnings per share - basic
Income before cumulative
effect of accounting change $.97 $1.02 $3.63 $4.69
Cumulative effect of
accounting change -- (.19) -- (.19)
------- ------ -------- --------
Net income $.97 $.83 $3.63 $4.50
======= ======= ======== ========
Weighted average common
shares outstanding - diluted 396.8 399.6 399.9 399.9
Earnings per share - diluted
Income before cumulative
effect of accounting change $.96 $1.00 $3.58 $4.64
Cumulative effect of
accounting change -- (.18) -- (.19)
------- ------- -------- --------
Net income $.96 $.82 $3.58 $4.45
======= ======= ======== ========
Minnesota Mining and Manufacturing Company and Subsidiaries
Supplemental Unaudited Consolidated Statement of Income Information
(Dollars in millions, except per-share amounts)
Three months ended Three months ended
December 31, 2001 December 31, 2000
---------------------------- --------------------------
Excluding Excluding
non- Non- non- Non- Report-
recurring recurring Reported recurring recurring ed
items items total items items total
--------- --------- -------- --------- -------- -------
Net sales $3,863 $-- $3,863 $4,136 $-- $4,136
Cost of sales 2,070 61 2,131 2,130 90 2,220
Selling,
general and
administrative
expenses 934 42 976 1,009 -- 1,009
Research,
development
and related
expenses 262 -- 262 276 -- 276
Other expense
(income) -- (88) (88) -- (16) (16)
Operating
income (loss) $597 $(15) $582 $721 $(74) $647
Other (income)
and expense,
net 16 -- 16 19 -- 19
Income (loss)
before income
taxes,
minority
interest
and cumulative
effect of
accounting
change $581 $(15) $566 $702 $(74) $628
Provision
(benefit) for
income taxes 184 (9) 175 232 (28) 204
Effective tax
rate 31.6% -- 31.0% 33.1% -- 32.5%
Minority
interest 10 -- 10 23 -- 23
Income (loss)
before
cumulative
effect of
accounting
change $387 $(6) $381 $447 $(46) $401
Cumulative
effect of
accounting
change -- -- -- -- (75) (75)
Net income
(loss) $387 $(6) $381 $447 $(121) $326
Per share-
diluted $.98 $(.02) $.96 $1.12 $(.30) $.82
Minnesota Mining and Manufacturing Company and Subsidiaries
Supplemental Unaudited Consolidated Statement of Income Information
(Dollars in millions, except per-share amounts)
Twelve months ended Twelve months ended
December 31, 2001 December 31, 2000
---------------------------- --------------------------
Excluding Excluding
non- Non- non- Non- Report-
recurring recurring Reported recurring recurring ed
items items total items items total
--------- --------- -------- --------- -------- -------
Net sales $16,079 $-- $16,079 $16,724 $-- $16,724
Cost of sales 8,477 272 8,749 8,579 208 8,787
Selling,
general and
administrative
expenses 3,761 300 4,061 3,963 -- 3,963
Research,
development
and related
expenses 1,064 20 1,084 1,101 -- 1,101
Other expense
(income) -- (88) (88) -- (185) (185)
Operating
income (loss) $2,777 $(504) $2,273 $3,081 $(23) $3,058
Other (income)
and expense,
net 87 -- 87 84 -- 84
Income (loss)
before income
taxes,
minority
interest and
cumulative
effect of
accounting
change $2,690 $(504) $2,186 $2,997 $(23) $2,974
Provision
(benefit) for
income taxes 886 (184) 702 1,033 (8) 1,025
Effective tax
rate 32.9% -- 32.1% 34.5% -- 34.5%
Minority
interest 62 (8) 54 92 -- 92
Income (loss)
before
cumulative
effect of
accounting
change $1,742 $(312) $1,430 $1,872 $(15) $1,857
Cumulative
effect of
accounting
change -- -- -- -- (75) (75)
Net income
(loss) $1,742 $(312) $1,430 $1,872 $(90) $1,782
Per share-
diluted $4.36 $(.78) $3.58 $4.68 $(.23) $4.45
Minnesota Mining and Manufacturing Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
(Dollars in millions, except per-share amounts)
(Unaudited)
December 31, December 31,
ASSETS 2001 2000
Current assets ------------ ------------
Cash and cash equivalents $ 616 $ 302
Accounts receivable - net 2,482 2,891
Inventories 2,091 2,312
Other current assets 1,107 874
------------ ------------
Total current assets 6,296 6,379
Property, plant and equipment - net 5,615 5,823
Investments and other assets 2,695 2,320
------------ ------------
Total assets $14,606 $14,522
============ ============
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities
Short-term debt $ 1,373 $1,866
Other current liabilities 3,136 2,888
------------ ------------
Total current liabilities 4,509 4,754
Long-term debt 1,520 971
Other liabilities 2,491 2,266
------------ ------------
Total liabilities 8,520 7,991
------------ ------------
Total stockholders' equity - net 6,086 6,531
Shares outstanding
December 31, 2001: 391,303,636 shares
December 31, 2000: 396,085,348 shares
------------ ------------
Total liabilities and stockholders' equity $14,606 $14,522
============ ============
Minnesota Mining and Manufacturing Company and Subsidiaries
BUSINESS SEGMENTS (Unaudited)
----------------------------------------------------------------------
BUSINESS
SEGMENT Three months Twelve months
ended ended
INFORMATION December 31 December 31
(Millions) 2001 2000 2001 2000
----------------------------------------------------------------------
NET SALES
Transportation, Graphics and Safety $845 $840 $3,526 $3,518
Health Care 887 792 3,419 3,135
Industrial 761 847 3,199 3,525
Consumer and Office 675 709 2,724 2,848
Electro and Communications 469 664 2,171 2,467
Specialty Material 220 274 1,022 1,197
Corporate and Unallocated 6 10 18 34
----------------------------------------------------------------------
Total Company $3,863 $4,136 $16,079 $16,724
----------------------------------------------------------------------
OPERATING INCOME
Transportation, Graphics and Safety $150 $167 $695 $783
Health Care 213 159 760 675
Industrial 99 137 518 641
Consumer and Office 99 95 447 434
Electro and Communications 29 99 218 404
Specialty Material 22 (8) 141 57
Corporate and Unallocated (30) (2) (506) 64
----------------------------------------------------------------------
Total Company $582 $647 $2,273 $3,058
----------------------------------------------------------------------
Several non-recurring items impacted operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. by business segment. Fourth quarter 2001 non-recurring items (included in Corporate and Unallocated) on a combined basis resulted in a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $15 million ($6 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , or $.02 per share). During the fourth quarter of 2001, under its previously announced restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan, 3M incurred a pre-tax charge of $103 million related to employee separation costs and accelerated depreciation Accelerated Depreciation Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. Notes: The straight-line depreciation method spreads the cost evenly over the life of an asset. charges. 3M recorded a $73 million pre-tax gain relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 3M's successful appeal in an antitrust case Noun 1. antitrust case - a legal action brought against parties who are charged with limiting free competition in the market place action at law, legal action, action - a judicial proceeding brought by one party against another; one party prosecutes another for a brought by LePage's Incorporated. 3M also recorded a net pre-tax gain of $15 million related to the sale of available-for-sale equity securities, partially offset by the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of equity securities. Third quarter 2001 non-recurring charges of $69 million (included in Corporate and Unallocated) related to employee separation costs and accelerated depreciation charges. Second quarter 2001 non-recurring charges of $397 million (included in Corporate and Unallocated) principally related to employee separation costs. First quarter 2001 operating income includes non-recurring costs of $23 million recorded in cost of sales. These non-recurring costs (primarily increased valuation and subsequent sale of acquired inventories) totaled $10 million in Health Care; $7 million in Transportation, Graphics and Safety; and $6 million in the Electro E`lec´tro n. 1. An electrotype. and Communications segment. Fourth quarter 2000 operating income includes non-recurring costs of $90 million (included in cost of sales) and non-recurring gains of $16 million from the sale of available-for-sale equity securities (recorded in Corporate and Unallocated). Non recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. costs in the fourth quarter of 2000 include $62 million of costs in the Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. Material segment related to the company's phase out of perfluorooctanyl chemistry production, $20 million write-down of corporate and unallocated assets, and $8 million of expense primarily related to acquisitions in the Electro and Communications segment. Third quarter 2000 operating income includes non-recurring costs of $118 million (included in cost of sales) and non-recurring gains of $119 million. Non-recurring items in the third quarter of 2000 include $106 million of costs in the Specialty Material segment relating to the company's phase out of perfluorooctanyl chemistry production. Remaining non-recurring items in the third quarter of 2000 were largely gains related to asset dispositions, principally the sale of available-for-sale equity securities, and are primarily recorded in Corporate and Unallocated. First quarter 2000 operating income includes a $50 million benefit relating to the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of a product distribution agreement in the Health Care segment. About 3M 3M is a $16 billion diversified diversified (di·verˑ·s technology company with leading positions in industrial, consumer and office, health care, safety, electronics, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and other markets. Headquartered in St. Paul, Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces , the company has operations in more than 60 countries and serves customers in nearly 200 countries. 3M businesses share technologies, manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. , brands, marketing channels and other important resources. 3M is one of the 30 stocks that make up the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. and also is a component of the Standard & Poor's 500 Index. Additional information about the company is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.3M.com or www.3M.com/profile/pressbox/index.jhtml. |
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