EXHIBIT 99 Investor Contacts: Jon Greer Media Contact: John Cornwell 651-736-1915 651-733-7698 jagreer@mmm.com jrcornwell@mmm.com Matt Ginter 651-733-8206 mjginter@mmm.com FOR IMMEDIATE RELEASE 3M Reports Record Quarterly Sales and Earnings Q3 EPS up nearly 10% on 11% volume growth* St. Paul, Minn. - Oct. 23, 2000 -- 3M today reported record third- quarter earnings of $1.25 per share, an increase of 9.6 percent over third-quarter 1999. Net income reached $499 million, up from $462 million in the year-earlier quarter. The quality of 3M earnings continues to be high, with operating income 19.2 percent of sales, net income 11.7 percent of sales and return on invested capital 20.3 percent. "3M continues to deliver solid, top-line-driven earnings growth," said L.D. DeSimone, chairman and chief executive officer. "We're growing through a strong flow of innovative products, close relationships with customers and our strong international presence. These platforms provide us with many avenues for growth, while cushioning us from disruptions in any single market or region of the world." Sales totaled $4.252 billion, an increase of 6.4 percent over the third quarter last year. Unit sales increased 11 percent. Sales growth was particularly strong in the Asia Pacific area, where 3M has built a strong presence and continues to expand its product offerings. Currency translation reduced global sales by 3 percent. Nine-Month Results/Outlook For the first nine months of 2000, earnings per share rose 14.1 percent to a record $3.56. Currency effects reduced earnings for the period by 8 cents a share, or nearly 3 percent. Net income totaled $1.425 billion, up from $1.267 billion in the same period last year. Operating income was 18.8 percent of sales, up more than a half a percentage point from the same period last year. Net income was 11.4 percent of sales and return on invested capital was 19.7 percent. Sales totaled $12.528 billion, an increase of nearly 8 percent from the prior period. Unit sales rose 11 percent. Currency reduced revenues for the period by 2 percent. "We have good momentum, and we expect to meet earnings expectations for the fourth quarter and next year," DeSimone said. "We have tremendous technology platforms, a great portfolio of businesses, a strong flow of new products, a global presence, and an effective and competitive infrastructure. We're confident in our ability to continue to deliver solid, consistent earnings growth." 3M will webcast its third-quarter conference call beginning at 9 a.m. Eastern time today. This event will be available through 3M's website located at http://199.230.26.96/mmm/index.html. Listeners should go to the website at least 15 minutes prior to the call to register and download and install any necessary audio software. A replay will be available beginning approximately two hours after the event and continuing through Oct. 27. * This news release discussion excludes non-recurring items in all periods. During the third quarter of 2000, 3M incurred one-time, pre- tax costs of approximately $118 million, primarily related to the company's decision to phase out its perfluorooctanyl chemistry. These costs are recorded in cost of goods sold. Third-quarter 2000 results also include non-recurring gains of $119 million related to asset sales, principally the sale of shares held in a company as result of a prior business relationship. For the first nine months of 2000, net income of $1.425 billion, or $3.56 per share, also excludes a $50 million benefit ($31 million after tax) related to the termination of a marketing agreement in the company's health care business. Third- quarter 1999 net income of $462 million, or $1.14 per share, excludes non-recurring items totaling $4 million ($3 million after tax). Third- quarter 1999 non-recurring items consist of a $73 million charge related to litigation, gains on divestitures of $43 million, and a gain related to a restructuring change in estimate of $26 million. Nine-month 1999 net income of $1.267 billion, or $3.12 per share, also excludes non-recurring, pre-tax second quarter items of $104 million related to gains on divestitures, net of an investment valuation adjustment. Forward-Looking Statements Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors, including: (1) worldwide economic conditions; (2) foreign exchange rates and fluctuations in those rates; (3) the timing and acceptance of new product offerings; (4) raw materials, including shortages and increases in the costs of key raw materials; (5) our ability to successfully manage acquisitions, divestitures and strategic alliances; and (6) legal proceedings. # # # About 3M 3M is a $16 billion technology company with leading positions in electronics, telecommunications, industrial, consumer and office, health care, safety and other markets. Headquartered in St. Paul, Minnesota, the company has operations in more than 60 countries and serves customers in nearly 200 countries. 3M businesses share technologies, manufacturing operations, brands, marketing channels and other important resources. 3M is one of the 30 stocks that make up the Dow Jones Industrial Average and also is a component of the Standard & Poor's 500 Index. Additional information about the company is available on the Internet at www.3M.com. Minnesota Mining and Manufacturing Company and Subsidiaries (Unaudited) Sales Change Analysis Third-Quarter 2000
U.S. International Worldwide Volume 5.5% 16% 11% Price (1) (2) (1.5) Translation -- (6) (3) === === === Total 4.5% 8% 6.5%
Sales Change Analysis Year-to-Date 2000
U.S. International Worldwide Volume 7% 15% 11% Price (1) (2) (1.5) Translation -- (3.5) (2) === === === Total 6% 9.5% 7.5%
Minnesota Mining and Manufacturing Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME (Unaudited)
3 Months Ended 9 Months Ended September 30 September 30 (Amounts in millions, except per-share amounts) 2000 1999 2000 1999 Net sales $4,252 $3,997 $12,528 $11,636 Operating expenses Cost of goods sold 2,479 2,253 7,124 6,603 Selling, general and administrative expenses 1,073 979 3,162 2,919 Restructuring credit -- (26) -- (26) Other expense (income) -- net (119) 30 (169) (74) ------ ------ ------- ------- Total 3,433 3,236 10,117 9,422 ------ ------ ------- ------- Operating income 819 761 2,411 2,214 ------ ------ ------- ------- Other income and expense Interest expense 29 26 81 83 Investment and other income -- net (4) (7) (16) (22) ------ ------ ------- ------- Total 25 19 65 61 ------ ------ ------- ------- Income before income taxes and minority interest 794 742 2,346 2,153 Provision for income taxes 274 260 821 776 Minority interest 21 23 69 58 ------ ------ ------- ------- Net income $ 499 $ 459 $ 1,456 $ 1,319 ====== ====== ======= ======= Weighted average common shares outstanding -- basic 395.1 402.1 396.1 402.5 Earnings per share -- basic $ 1.26 $ 1.14 $ 3.67 $ 3.28 ====== ====== ======= ======= Weighted average common shares outstanding -- diluted 399.0 406.8 400.0 406.5 Earnings per share -- diluted $ 1.25 $ 1.13 $ 3.64 $ 3.25 ====== ====== ======= =======
Minnesota Mining and Manufacturing Company and Subsidiaries SUPPLEMENTAL CONSOLIDATED STATEMENT OF INCOME INFORMATION (Unaudited) (Amounts in millions, except per-share amounts)
3 Months Ended 3 Months Ended Sept. 30, 2000 Sept. 30, 1999 Excluding Excluding Non- Non- Non- Non- recurring recurring Reported recurring recurring Reported Items Items Total Items Items Total Operating income (loss) $ 818 $ 1 $ 819 $ 765 $ (4) $ 761 Other income and expense $ 25 -- $ 25 $ 19 -- $ 19 Income (loss) before income taxes and minority interest $ 793 $ 1 $ 794 $ 746 $ (4) $ 742 Provision (benefit) for income taxes $ 273 $ 1 $ 274 $ 261 $ (1) $ 260 Effective tax rate 34.4% 34.5% 35.0% 27.3% 35.0% Minority interest $ 21 -- $ 21 $ 23 -- $ 23 Net income (loss) $ 499 -- $ 499 $ 462 $ (3) $ 459 Per share -- diluted $1.25 -- $1.25 $1.14 $(0.01) $1.13
9 Months Ended 9 Months Ended Sept. 30, 2000 Sept. 30, 1999 Excluding Excluding Non- Non- Non- Non- recurring recurring Reported recurring recurring Reported Items Items Total Items Items Total Operating income $2,360 $ 51 $2,411 $2,114 $ 100 $2,214 Other income and expense$ 65 -- $ 65 $ 61 -- $ 61 Income before income taxes and minority interest $2,295 $ 51 $2,346 $2,053 $ 100 $2,153 Provision for income taxes $ 801 $ 20 $ 821 $ 728 $ 48 $ 776 Effective tax rate 34.9% 39.7% 35.0 35.5% 47.8% 36.0% Minority interest $ 69 -- $ 69 $ 58 -- $ 58 Net income $1,425 $ 31 $1,456 $1,267 $ 52 $1,319 Per share -- diluted $ 3.56 $0.08 $ 3.64 $ 3.12 $0.13 $ 3.25
Minnesota Mining and Manufacturing Company and Subsidiaries CONSOLIDATED BALANCE SHEET (Unaudited)
Sept. 30 Dec. 31 (Dollars in millions) 2000 1999 Assets Current assets Cash and cash equivalents $ 323 $ 387 Other securities -- 54 Accounts receivable -- net 3,057 2,778 Inventories 2,236 2,030 Other current assets 1,035 817 ------- ------- Total current assets 6,651 6,066 Property, plant and equipment -- net 5,536 5,656 Investments and other assets 2,495 2,174 ------- ------- Total $14,682 $13,896 ======= ======= - ---------------------------------------------------------------------- Liabilities and Stockholders' Equity Current liabilities Short-term debt $ 1,633 $ 1,130 Other current liabilities 3,197 2,689 ------- ------- Total current liabilities 4,830 3,819 Long-term debt 1,141 1,480 Other liabilities 2,262 2,308 Stockholders' equity -- net 6,449 6,289 Shares outstanding Sept. 30, 2000: 394,433,465 shares Dec. 31, 1999: 398,710,817 shares ------- ------- Total $14,682 $13,896 ======= =======
Business Segments: In the first quarter of 2000, business segment operating income for 1999 was restated for minor amounts, to be consistent with year 2000 management reporting practices. Certain costs previously included in Corporate and Unallocated were allocated to the individual business segments. 3M net sales and operating income by segment for 1999 and 2000 follow.
Business Segment Information Third Quarter Second Quarter First Quarter (Millions) 2000 1999 2000 1999 2000 1999 Net sales Industrial $ 885 $ 851 $ 873 $ 836 $ 911 $ 842 Transportation, Graphics and Safety 891 826 912 806 872 777 Health Care 773 768 794 793 765 768 Consumer and Office 750 712 692 638 687 638 Electro and Communications 654 534 642 485 505 442 Specialty Material 292 298 302 292 305 292 Corporate and Unallocated 7 8 9 13 7 17 Total Company $4,252 $3,997 $4,224 $3,863 $4,052 $3,776 Operating income Industrial $ 166 $ 154 $ 153 $ 154 $ 185 $ 148 Transportation, Graphics and Safety 194 184 213 171 209 148 Health Care 165 183 158 194 193 144 Consumer and Office 132 121 102 95 105 88 Electro and Communications 111 119 105 90 89 82 Specialty Material (43) 50 57 60 51 55 Corporate and Unallocated 94 (50) (11) 40 (17) (16) Total Company $ 819 $ 761 $ 777 $ 804 $ 815 $ 649
Third quarter 2000 operating income includes non-recurring costs of $118 million and non-recurring gains of $119 million. Non-recurring items by segment in the third quarter of 2000 include $106 million of costs in the Specialty Material segment related to the company's phase out of perfluorooctanyl chemistry. Remaining non-recurring items in the third quarter of 2000 were largely gains related to asset sales and are primarily recorded in Corporate and Unallocated. First quarter 2000 operating income includes a $50 million benefit relating to the termination of a product distribution agreement in the Health Care segment. Third quarter 1999 operating income includes a $43 million gain related to divestitures, mainly in the Health Care area, and Corporate and Unallocated includes $73 million in litigation expense partially offset by a $26 million change in estimate that reduced the restructuring charge. Second quarter 1999 operating income includes gains on divestitures, net of an investment valuation adjustment, of $30 million in Health Care and $74 million in Corporate and Unallocated.