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3M REPORTS HIGHER 4TH-QUARTER, FULL-YEAR EARNINGS

 ST. PAUL, Minn., Feb. 3 /PRNewswire/ -- 3M (NYSE: MMM) today reported fourth-quarter net income of $289 million, or $1.32 a share, an increase of 11.5 percent from $259 million, or $1.18 a share, in the same quarter of 1991. Sales for the quarter totaled $3.375 billion, up 4.7 percent from $3.224 billion in the fourth quarter of 1991.
 L.D. DeSimone, chairman and chief executive officer, said that "earnings benefited from solid volume growth in the United States and from efforts to improve productivity worldwide."
 DeSimone noted that 3M's U.S. unit sales rose about 8 percent from the fourth quarter of 1991. "Helped by an improving U.S. economy, this was our best U.S. volume gain in four years," he said.
 DeSimone noted that the gain in fourth-quarter earnings was held back by economic weakness abroad. "While we continued to see solid gains in Latin America and many Asian countries," he said, "growth in those regions was largely offset by weakness in Europe and Japan."
 He said that a previously announced $129 million pre-tax benefit stemming from settlement of a patent lawsuit was offset by a special charge of $115 million -- also previously announced -- and by $25 million for voluntary-separation programs in the fourth quarter. The total charges of $140 million will improve 3M productivity.
 For 1992 as a whole, 3M earnings(1) totaled $1.233 billion, or $5.63 a share. That was up 6.8 percent from $1.154 billion, or $5.26 a share, in 1991. Sales totaled $13.883 billion, an increase of 4.1 percent from $13.340 billion in 1991.
 "While our 1992 results fell short of our long-term objectives," DeSimone said, "our people did a good job in a difficult economy.
 "We again grew faster than the economies we serve, both in the United States and internationally. Our Life Sciences Sector -- a leader in products that improve health and safety -- again showed good growth in sales and profits. We continued to improve our productivity, and we maintained our strong financial position."
 DeSimone said that, despite soft economies in Europe and Japan and a stronger U.S. dollar, 3M expects good earnings growth in 1993.
 "We expect to benefit from the predicted gradual improvement in the U.S. economy, continued productivity gains, a steady stream of new products, and efforts to increase our market penetration abroad," he said.
 (1) Includes a reduction to net income of $3 million, or 2 cents a share, stemming from the adoption of two new accounting standards and a change in the financial-reporting period for International Operations from a fiscal year ending October 31 to a calendar year ending December 31. The two accounting standards are SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and SFAS No. 109, "Accounting for Income Taxes."
 3M FINANCIAL HIGHLIGHTS
 4th Quarter Ended Dec. 31
 1992 1991
 Net sales $3.375 billion $3.224 billion
 Income before
 income taxes,
 minority interest
 and accounting
 changes $454 million $414 million
 Provision for
 income taxes $160 million $149 million
 Tax rate 35.3 pct. 36.1 pct.
 Net income $289 million $259 million
 Average common
 shares 219.1 million 219.2 million
 Earnings per share $1.32 $1.18
 Full Year Ended Dec. 31
 1992 1991
 Net sales $13.883 billion $13.340 billion
 Income before income
 taxes, minority
 interest and accounting
 changes $1.947 billion $1.877 billion
 Provision for
 income taxes $687 million $691 million
 Tax rate 35.3 pct. 36.8 pct.
 Net income $1.233 billion $1.154 billion
 Average common
 shares 219.1 million 219.6 million
 Earnings per share $5.63 $5.26
 SALES CHANGE ANALYSIS
 U.S. International Worldwide
 4Q Year 4Q(a) Year 4Q Year
 Volume 8 3 6 5 7 4
 Price (1) 0 (1) (1) (1) (1)
 Translation -- -- (2) 1 (1) 1
 Total 7 3 3 5 5 4
 (a) Compares the last three months--October, November and December-- in calendar year 1992 with the last three months--August, September and October--in fiscal year 1991.
 CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 Minnesota Mining and Manufacturing Company and Subsidiaries
 (Amounts in millions, except per-share data)
 3 Months 12 Months
 Ended Dec. 31 Ended Dec. 31
 1992 1991 1992 1991
 Net Sales $3,375 $3,224 $13,883 $13,340
 Operating Expenses
 Cost of goods sold 2,039 1,977 8,346 8,058
 Selling, general and
 administrative expenses 894 817 3,557 3,323
 Legal settlement (129) -- (129) --
 Special charges 115 -- 115 --
 Total 2,919 2,794 11,889 11,381
 Operating Income 456 430 1,994 1,959
 Other Income and Expense
 Interest expense 15 18 76 97
 Investment and other
 income--net (13) (2) (29) (15)
 Total 2 16 47 82
 Income Before Income Taxes,
 Minority Interest and
 Cumulative Effect of
 Accounting Changes 454 414 1,947 1,877
 Provision for Income Taxes 160 149 687 691
 Minority Interest 5 6 24 32
 Income Before Cumulative Effect
 of Accounting Changes 289 259 1,236 1,154
 Cumulative Effect of
 Accounting Changes -- -- 3 --
 Net Income $289 $ 259 $ 1,233 $ 1,154
 Per-Share Amounts:
 Income Before Cumulative
 Effect of
 Accounting Changes $ 1.32 $ 1.18 $ 5.65 $ 5.26
 Cumulative Effect of
 Accounting Changes -- -- (.02) --
 Net Income $ 1.32 $ 1.18 $ 5.63 $ 5.26
 Average Shares
 Outstanding 219.1 219.2 219.1 219.6
 CONSOLIDATED BALANCE SHEET (Unaudited)
 As of December 31
 (Dollars in millions)
 1992 1991(a)
 ASSETS
 Current Assets
 Cash and cash equivalents $382 $258
 Other securities 340 180
 Accounts receivable - net 2,394 2,362
 Inventories 2,315 2,292
 Other current assets 778 635
 Total current assets 6,209 5,727
 Property, Plant
 and Equipment - net 4,792 4,666
 Investments and Other Assets 954 911
 Total $11,955 $11,304
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Liabilities
 Short-term debt $739 $709
 Other current liabilities 2,502 2,397
 Total current liabilities 3,241 3,106
 Deferred Taxes and
 Other Liabilities 1,428 1,141
 Long-Term Debt 687 764
 Stockholders' Equity
 Shares outstanding -
 12/31/92: 219,034,050
 shares; 12/31/92: 219,140,359
 shares 6,797 6,317
 Cumulative Translation - net (198) (24)
 Stockholders' Equity - net 6,599 6,293
 Total $11,955 $11,304
 (a) Certain Balance Sheet amounts for 1991 have been reclassified to conform to the 1992 presentation.
 -0- 2/3/93
 /CONTACT: Jon Greer of 3M, 612-736-1915/
 (MMM)


CO: 3M Company ST: Minnesota IN: SU: ERN

DS -- MN002 -- 2215 02/03/93 08:05 EST
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Date:Feb 3, 1993
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