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3M REPORTS HIGHER SECOND-QUARTER SALES AND EARNINGS

 ST. PAUL, Minn., July 30 /PRNewswire/ -- 3M (NYSE: MMM) today reported second-quarter net income of $331 million, or $1.51 a share, an increase of 4.2 percent from $317 million, or $1.45 a share, in the second quarter last year.
 Sales totaled $3.540 billion, up 0.6 percent from $3.519 billion in the year-earlier quarter.
 L.D. DeSimone, chairman and chief executive officer, said, "We posted a good earnings gain in the United States, helped by continued efforts to improve productivity. However, international results were negatively affected by the recession in Europe and the strength of the U.S. dollar."
 A stronger U.S. dollar reduced 3M's worldwide sales by about 2 percent and net income by an estimated 6 cents a share. 3M's unit sales increased about 4 percent, both in the United States and abroad.
 "Internationally, we continued to achieve strong growth in Latin America and in many Asian countries," DeSimone said. "However, volume declined about 1 percent in Europe, reflecting the economic weakness there."
 For the first half, 3M earnings totaled $661 million, or $3.02 a share, an increase of 6.6 percent from $620 million(a), or $2.83 a share, in the same period last year. Sales were $7.057 billion, up 1.4 percent from $6.957 billion in the first half last year.
 Looking ahead, DeSimone said, "The economic environment -- particularly in Europe -- remains challenging and the currency situation has turned more negative.
 "Despite this, we look for higher earnings for the year as a whole. We expect to benefit from our emphasis on new products, increased penetration of international markets, customer satisfaction and productivity improvement."
 (a) Includes a reduction to net income of $3 million, or 2 cents a share, stemming from the adoption of two accounting standards and a change in the financial-reporting period for 3M's International Operations from a fiscal year ending Oct. 31 to a calendar year ending Dec. 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." As a result of these changes, 3M previously restated financial results for the first, second and third quarters of 1992.
 SALES CHANGE ANALYSIS
 SECOND QUARTER 1993
 (In percents)
 United States International Worldwide
 Volume 4 4 4
 Price (1) (1) (1)
 Translation -- (4) (2)
 Total 3 (1) 1
 CONSOLIDATED STATEMENT OF INCOME
 (Amounts in millions, except per-share data)
 (Unaudited)
 Three Months Ended Six Months Ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Net Sales $3,540 $3,519 $7,057 $6,957
 Operating Expenses
 Cost of goods sold 2,131 2,115 4,243 4,173
 Selling, general
 and administrative
 expenses 893 887 1,768 1,758
 Total 3,024 3,002 6,011 5,931
 Operating Income 516 517 1,046 1,026
 Other Income and Expense
 Interest expense 15 19 26 41
 Investment and
 other (income)/
 expense -- net (21) 1 (30) (1)
 Total (6) 20 (4) 40
 Income Before Income
 Taxes, Minority Interest
 & Cumulative Effect of
 Accounting Changes 522 497 1,050 986
 Provision for
 Income Taxes 184 175 372 350
 Minority Interest 7 5 17 13
 Income Before
 Cumulative Effect
 of Accounting
 Changes 331 317 661 623
 Cumulative Effect of
 Accounting Changes -- -- -- 3
 Net Income $331 $317 $661 $620
 Average Number of Shares
 Outstanding 218.2 219.0 218.5 219.1
 Per Share Amounts:
 Income before
 accounting changes $1.51 $1.45 $3.02 $2.85
 Cumulative effect
 of accounting changes -- -- -- ($0.02)
 Earnings per share $1.51 $1.45 $3.02 $2.83
 CONSOLIDATED BALANCE SHEET
 (Dollars in millions)
 (Unaudited)
 As of
 6/30/93 6/30/92
 ASSETS
 Current Assets
 Cash and cash equivalents $329 $306
 Other securities 321 272
 Accounts receivable - net 2,665 2,686
 Inventories 2,352 2,301
 Other current assets 715 657
 Total current assets 6,382 6,222
 Property, Plant and Equipment - net 4,813 4,895
 Investments and Other Assets 950 952
 Total $12,145 $12,069
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Liabilities
 Short-term debt $829 $899
 Other current liabilities 2,536 2,273
 Total current liabilities 3,365 3,172
 Other Liabilities 1,511 1,438
 Long-Term Debt 679 803
 Stockholders' Equity
 Shares outstanding -
 June 30, 1993 216,974,988 shares
 June 30, 1992 218,971,158 shares 6,834 6,551
 Cumulative Translation - net (244) 105
 Stockholders' Equity - net 6,590 6,656
 Total $12,145 $12,069
 -0- 7/30/93
 /CONTACT: Jon A. Greer, 3M Investor Relations, 612-736-1915/
 (MMM)


CO: Minnesota Mining and Manufacturing ST: Minnesota IN: SU: ERN

KH -- MN002 -- 7570 07/30/93 07:11 EDT
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Date:Jul 30, 1993
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