3M Reports Higher First-Quarter Sales and Earnings; Revenues Increase 11.0 Percent to a Record $4.32 Billion.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)--April 21, 2003 3M (NYSE NYSE See: New York Stock Exchange :MMM MMM Myeloid metaplasia with myelofibrosis, see there ) today announced its sales and earnings results for first quarter 2003. The company reported net income of $502 million, or $1.27 per share, versus $452 million, or $1.14 per share, in the first quarter of 2002. Excluding special items(a), 3M earned $1.42 per share, up 15.4 percent from $1.23 per share in last year's first quarter. Net income, excluding special items(a), was $560 million versus $487 million in the comparable quarter. "The entire 3M team is energized by this quarter's results," said W. James McNerney Walter James "Jim" McNerney, Jr., is an American businessman. On June 30, 2005 he was named the CEO of The Boeing Company. Prior to that, McNerney was the Chairman and Chief Executive of 3M. He had been a member of the Boeing board of directors since 2001. , Jr., 3M chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "3Mers everywhere are driving our global corporate initiatives across the company and achieving both improved productivity and accelerated top-line growth." Worldwide sales in the first quarter totaled $4.318 billion, 11.0 percent higher than in the year-earlier quarter. Sales volumes increased 5.4 percent, including a positive 2.0 percent impact from acquisitions. Volumes increased 24.4 percent in Display and Graphics (includes 12 percent from acquisitions), 5.0 percent in Safety, Security and Protection Services, 4.7 percent in Health Care, 3.9 percent in Industrial, 3.3 percent in Consumer and Office and 1.7 percent in Transportation. Volumes declined 5.1 percent in Electro E`lec´tro n. 1. An electrotype. and Communications. Currency effects increased worldwide sales by 5.6 percent, while selling prices were flat. Sales in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. totaled $1.800 billion, up 1.0 percent from the same quarter of 2002. Volumes increased 1.4 percent, including a positive 1.8 percent impact from acquisitions, while selling prices declined 0.4 percent. Sales outside the United States totaled $2.518 billion. Volumes increased 8.7 percent versus the comparable quarter, which includes a positive 2.2 percent impact from acquisitions. Changes in the value of the U.S. dollar increased international sales by 10.4 percent and selling prices increased 0.4 percent. Volumes increased 19 percent in Asia Pacific driven by an 8 percent increase in Japan and a 30 percent increase in the rest of the region. Volumes also increased in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. by 17.5 percent, whereas volumes declined 1.1 percent in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
"As everyone knows, geo-political and economic conditions remain highly uncertain," McNerney said. "Despite these conditions, we remain committed to achieving our top-line and profitability goals while driving higher cash flow and preserving a strong and healthy balance sheet." 3M also reaffirmed its earnings outlook for 2003. For the year, the company expects reported earnings will be within a range of $5.65 to $5.85 per share. Excluding special items, 3M expects 2003 earnings to be between $5.80 and $6.00 per share. Second-quarter earnings are expected to be in the range of $1.47 to $1.53 per share. Patrick D. Campbell Campbell, city, United States Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. , senior vice president and chief financial officer, will conduct an investor teleconference at 9 a.m. Eastern Time (8 a.m. Central) today. Investors can access a webcast of this conference, along with related charts and materials, at http://investor.3M.com. (a) As previously announced by 3M on March 26, 2003, a court issued an adverse ruling associated with a lawsuit lawsuit: see procedure; tort. filed against 3M in 1997 by LePage's Inc. During the first quarter of 2003, 3M recorded pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges of $93 million ($58 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. ) related to this proceeding. During the first quarter of 2002, 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 pretax charges of $54 million ($35 million after-tax) primarily 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. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking statements that reflect current views and estimates of 3M's management of future economic circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , industry conditions, company performance and financial results. The statements are based on many assumptions and factors including: (1) worldwide economic conditions; (2) foreign currency exchange rates and fluctuations in those rates; (3) the timing and acceptance of new product offerings; (4) purchased components and materials, including shortages and increases in the costs of such components and materials; (5) 3M's ability to successfully manage acquisitions, divestitures and strategic alliances; and (6) legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. . Any changes in such assumptions or factors could produce significantly different results. About 3M 3M is a $16 billion diversified diversified (di·verˑ·s technology company with leading positions in consumer and office; display and graphics; electronics and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. ; health care; industrial; safety, security and protection services; transportation and other businesses. 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 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. For more information about 3M, go to www.3M.com/profile/pressbox/index.jhtml.
3M Company and Subsidiaries
SALES CHANGE ANALYSIS
(Unaudited)
First-Quarter 2003
Worldwide U.S. Intl.
--------- --------- ---------
Volume - core 3.4% (0.4)% 6.5%
Volume - acquisitions
and divestitures 2.0 1.8 2.2
Price -- (0.4) .4
Translation 5.6 -- 10.4
--------- --------- ---------
Total 11.0% 1.0% 19.5%
========= ========= =========
3M Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(Amounts in millions, except per-share amounts)
(Unaudited)
Three-months ended
March 31
-------------------------
2003 2002
------- -------
Net sales $4,318 $3,890
------- -------
Operating expenses
Cost of sales 2,211 2,036
Selling, general and
administrative expenses 963 877
Research, development and
related expenses 270 264
Other expense 93 --
------- -------
Total 3,537 3,177
------- -------
Operating income 781 713
------- -------
Interest expense and income
Interest expense 23 19
Interest income (6) (9)
------- -------
Total 17 10
------- -------
Income before income taxes
and minority interest 764 703
Provision for income taxes 248 227
Minority interest 14 24
------- -------
Net income $ 502 $ 452
======= =======
Weighted average common
shares outstanding - basic 390.0 389.9
Earnings per share - basic $ 1.29 $ 1.16
======= =======
Weighted average common
shares outstanding - diluted 395.3 395.2
Earnings per share - diluted $ 1.27 $ 1.14
======= =======
3M Company and Subsidiaries
Supplemental Unaudited Consolidated Statement of Income Information
(Dollars in millions, except per-share amounts)
Three-months ended Three-months ended
March 31, 2003 March 31, 2002
-------------------------- --------------------------
Excluding Excluding
special Special Reported special Special Reported
items items total items items total
--------- ------- -------- --------- ------- --------
Net sales $ 4,318 $ -- $ 4,318 $ 3,890 $ -- $3,890
-------- ------- -------- --------- ------- --------
Operating
expenses
Cost of sales 2,211 -- 2,211 2,006 30 2,036
Selling,
general and
administrative
expenses 963 -- 963 856 21 877
Research,
development
and related
expenses 270 -- 270 261 3 264
Other expense -- 93 93 -- -- --
-------- ------- -------- --------- ------- --------
Total 3,444 93 3,537 3,123 54 3,177
-------- ------- -------- --------- ------- --------
Operating
income (loss) 874 (93) 781 767 (54) 713
Interest expense
and (income),
net 17 -- 17 10 -- 10
-------- ------- -------- --------- ------- --------
Income (loss)
before income
taxes and
minority
interest 857 (93) 764 757 (54) 703
Provision
(benefit) for
income taxes 283 (35) 248 246 (19) 227
Effective tax
rate 33.1% 32.5% 32.5% 32.2%
Minority
interest 14 -- 14 24 -- 24
-------- ------- -------- --------- ------- --------
Net income
(loss) $ 560 $ (58) $ 502 $ 487 $ (35) $ 452
======== ======= ======== ========= ======= ========
Weighted
average
diluted shares 395.3 395.3 395.3 395.2 395.2 395.2
Net income per
diluted share $ 1.42 $ (.15) $ 1.27 $ 1.23 $ (.09) $ 1.14
======== ======= ======== ========= ======= ========
3M Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
(Dollars in millions, except per-share amounts)
(Unaudited)
Mar. 31, Mar. 31, Dec. 31,
ASSETS 2003 2002 2002
Current assets -------- -------- --------
Cash and cash equivalents $ 561 $ 590 $ 618
Accounts receivable - net 2,643 2,610 2,527
Inventories 1,957 2,000 1,931
Other current assets 1,303 1,073 983
-------- -------- --------
Total current assets 6,464 6,273 6,059
Investments 221 262 238
Property, plant and equipment - net 5,550 5,488 5,621
Other assets 3,610 2,408 3,411
-------- -------- --------
Total assets $ 15,845 $ 14,431 $ 15,329
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt $ 1,200 $ 984 $ 1,237
Accounts payable 963 781 945
Payroll 409 531 411
Income taxes 652 595 518
Other current liabilities 1,468 1,121 1,346
-------- -------- --------
Total current liabilities 4,692 4,012 4,457
Long-term debt 2,119 1,891 2,140
Other liabilities 2,718 2,526 2,739
-------- -------- --------
Total liabilities 9,529 8,429 9,336
-------- -------- --------
Total stockholders' equity - net 6,316 6,002 5,993
Shares outstanding
March 31, 2003: 390,833,851 shares
March 31, 2002: 389,347,924 shares
December 31, 2002: 390,195,681 shares
-------- -------- --------
Total liabilities and stockholders'
equity $ 15,845 $ 14,431 $ 15,329
======== ======== ========
3M Company and Subsidiaries
BUSINESS SEGMENTS (Unaudited)
As more fully described in 3M's 2002 Annual Report on Form 10-K,
in September 2002, 3M announced it would strategically realign its
organization for faster growth and a closer focus on markets and
customers. This realignment resulted in seven reportable business
segments compared to the previous structure of six reportable business
segments. These structural changes were driven by 3M's strategic
planning process and represent an important step toward access to its
larger and faster-growing markets. Internal management reporting for
the new reportable business segments commenced January 1, 2003.
3M provided in its "Management's Discussion and Analysis of
Financial Condition and Results of Operations" section in its 2002
Annual Report on Form 10-K supplemental financial information related
to these new business segments on an annual basis. This information
was provided on a supplemental basis as the company did not operate
under this new structure for these periods, and has only operated
under this new structure since January 1, 2003.
3M filed a Current Report on Form 8-K on April 4, 2003, that
provided supplemental unaudited financial information on both an
annual and quarterly basis for the years ended December 31, 2002, 2001
and 2000 reflecting the historical realigned segments. This
supplemental financial information was provided for the respective
years to show the results on an interim basis for the realigned
segments. Results under the new structure for the quarter ended March
31, 2003 and 2002 follow.
3M Company and Subsidiaries
BUSINESS SEGMENTS (Unaudited)
----------------------------------------
BUSINESS
SEGMENT Three-months ended
INFORMATION March 31
(Millions) 2003 2002
---------------------------------------- ------- -------
NET SALES
Health Care $ 946 $ 845
Industrial 821 753
Consumer and Office 612 569
Display and Graphics 661 505
Electro and Communications 434 444
Safety, Security and Protection Services 458 413
Transportation 381 349
Corporate and Unallocated 5 12
---------------------------------------- ------- -------
Total Company $4,318 $3,890
---------------------------------------- ======= =======
OPERATING INCOME
Health Care $ 238 $ 220
Industrial 132 111
Consumer and Office 110 105
Display and Graphics 182 117
Electro and Communications 47 52
Safety, Security and Protection Services 105 86
Transportation 100 85
Corporate and Unallocated $ (133) $ (63)
---------------------------------------- ------- -------
Total Company $ 781 $ 713
---------------------------------------- ======= =======
As previously announced by 3M on March 26, 2003, a court issued an adverse ruling associated with a lawsuit filed against 3M in 1997 by LePage's Inc. During the first quarter of 2003, 3M recorded pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges of $93 million ($58 million after-tax) related to this proceeding (recorded in Corporate and Unallocated). During the first quarter of 2002, under its previously announced restructuring plan, 3M incurred pre-tax charges of $54 million ($35 million after-tax) primarily related to employee separation costs and accelerated depreciation charges (recorded in Corporate and Unallocated). |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion