EXHIBIT 99.1 FOR IMMEDIATE RELEASE 3M REPORTS FIRST QUARTER RESULTS; COMPANY ANNOUNCES RESTRUCTURING TO FURTHER STRENGTHEN COMPETITIVENESS St. Paul, Minn. -- April 23, 2001 -- 3M reported first quarter 2001 earnings of $1.16 per share, up 3 cents per share from the first quarter last year, excluding non-recurring items in both periods.* Net income totaled $467 million, compared with $456 million in the comparable period excluding non-recurring items. Sales totaled $4.17 billion, up 2.3 percent in U.S. dollars and 6.7 percent in local currencies. "Our people delivered solid results under extremely difficult U.S. economic conditions, continued strengthening of the U.S. dollar and sharply higher energy costs," said W. James McNerney, Jr., chairman of the board and CEO. Currency effects reduced earnings for the quarter by 7 cents per share and higher U.S. energy costs reduced earnings by 4 cents per share. Aggressive global cost control combined with good international volume gains largely offset these negative pressures. "We are intensely focused on driving down costs to deliver positive earnings growth in an uncertain global economic environment," McNerney said. "Unusually unpredictable market and currency trends produce a range of $4.75 to $5.00 per share for 2001 earnings in total, with negative market and currency trends more than offset in any scenario by our aggressive cost plan." 3M earned $4.68 per share in 2000, excluding non-recurring items. The company expects earnings for the second quarter to be similar to, or up slightly from, the second quarter last year. 3M also announced it will consolidate operations and streamline the organization to increase speed and productivity. This strategic and selective restructuring will reduce 3M's global workforce by about 5,000 positions, or about 7 percent, over the next 12 months. About half of the employment reductions will occur outside the United States. Business units, functional groups and geographic areas across the company are driving the restructuring. In particular, much of the streamlining will be targeted at parts of the company facing the greatest economic challenges, and where the greatest opportunities exist to eliminate unnecessary structure and improve productivity, efficiency and the supply chain. "Our management team is accelerating efforts to grow our strong market positions and deliver solid financial results," McNerney said. "We've identified opportunities to streamline our supply chain and achieve other structural improvements -- especially important now in light of the current, difficult economic situation, and the reality that these conditions may last longer than expected." McNerney added, "While no one likes to eliminate jobs, this action is consistent with our resolve to achieve solid growth, make the whole organization faster, and advance 3M to an even higher level." 3M continues its significant investment in technology and product development. The company also has launched five initiatives, including a major Six Sigma push, to drive long-term growth, profitability and cash flow. "Our businesses continue to strengthen their leading market positions," McNerney said. "As a result, we're well-positioned to resume strong growth once economic conditions improve." The company expects to incur a one-time charge of approximately $600 million over the next few quarters as a result of this action. The restructuring is expected to provide annual pre-tax savings of approximately $300 million upon completion of the plan. Not included in the charge are previously incurred costs related to elimination of some jobs stemming from the ongoing integration of recently acquired businesses. McNerney and Robert Burgstahler, chief financial officer, will conduct an investor teleconference at 9:00 a.m. Eastern Time (8:00 a.m. Central) today. This conference will be available via webcast at http://investor.3M.com. *During the first quarter of 2001, 3M incurred one-time, pre-tax costs of $23 million primarily related to acquisitions. These costs were recorded in cost of sales. During the first quarter of 2000, 3M recorded a $50 million pre-tax gain related to the termination of a product distribution agreement in the company's health care business. Including these non-recurring items, earnings totaled $453 million, or $1.13 per share, in the first quarter of 2001, compared with $487 million, or $1.21 per share, in the first quarter of 2000. FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements that reflect current views and estimates of 3M's management of future economic circumstances, 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. Any changes in such assumptions or factors could produce significantly different results. ### ABOUT 3M 3M is a $17 billion diversified 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. Investor Contact: Matt Ginter Media Contact: John Cornwell 3M 3M 651-733-8206 651-733-7698 mjginter@mmm.com jrcornwell@mmm.com Minnesota Mining and Manufacturing Company and Subsidiaries (Unaudited) Sales Change Analysis First-Quarter 2001 U.S. Intl. Worldwide ---- ----- --------- Volume (2.0)% 14.5% 6.5% Price 0.5 (0.5) 0.0 Translation -- (8.0) (4.5) ==== ==== ==== Total (1.5)% 6.0% 2.0% Minnesota Mining and Manufacturing Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME (Unaudited) 3 Months Ended 3 Months Ended March 31 March 31 (Amounts in millions, 2001 2000 except per-share amounts) Net sales $4,170 $4,075 Operating expenses Cost of sales 2,196 2,091 Selling, general and administrative expenses 959 956 Research, development and related expenses 278 263 Other expense (income) -- net -- (50) ------ ------- Total 3,433 3,260 ------ ------- Operating income 737 815 ------ ------- Other income and expense Interest expense 38 26 Interest and other income (12) (6) ------ ------- Total 26 20 ------ ------- Income before income taxes and minority interest 711 795 Provision for income taxes 238 282 Minority interest 20 26 ------ ------- Net income $ 453 $ 487 ====== ======= Weighted average common shares outstanding -- basic 396.3 397.7 Earnings per share -- basic $ 1.14 $ 1.22 ====== ======= Weighted average common shares outstanding -- diluted 402.4 401.9 Earnings per share -- diluted $ 1.13 $ 1.21 ====== ======= 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 March 31, 2001 March 31, 2000 Excluding Excluding Non- Non- Non- Non- recurring recurring Reported recurring recurring Reported Items Items Total Items Items Total ----- ----- ----- ----- ----- ----- Operating income (loss) $ 760 $ (23) $ 737 $ 765 $ 50 $ 815 Other income and expense 26 -- 26 20 -- 20 Income (loss) before income taxes and minority interest $ 734 $ (23) $ 711 $ 745 $ 50 $ 795 Provision (benefit) for income taxes 245 (7) 238 263 19 282 Effective tax rate 33.5% 33.5% 35.3% 35.5% Minority interest 22 (2) 20 26 -- 26 Net income (loss) $ 467 $ (14) $ 453 $ 456 $ 31 $ 487 Per share -- diluted $1.16 $(0.03) $1.13 $1.13 $0.08 $1.21
Minnesota Mining and Manufacturing Company and Subsidiaries CONSOLIDATED BALANCE SHEET (Unaudited) March 31 Dec. 31 (Dollars in millions) 2001 2000 ---- ---- ASSETS Current assets Cash and cash equivalents $ 575 $ 302 Accounts receivable -- net 2,948 2,891 Inventories 2,341 2,312 Other current assets 961 874 ------- ------- Total current assets 6,825 6,379 Property, plant and equipment -- net 5,853 5,823 Investments and other assets 2,686 2,320 ------- ------- Total $15,364 $14,522 ======= ======= - -------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term debt $ 2,302 $ 1,866 Other current liabilities 3,132 2,888 ------- ------- Total current liabilities 5,434 4,754 Long-term debt 955 971 Other liabilities 2,502 2,266 Stockholders' equity -- net 6,473 6,531 Shares outstanding March 31, 2001: 395,914,197 shares December 31, 2000: 396,085,348 shares ------- ------- Total $15,364 $14,522 ======= ======= Minnesota Mining and Manufacturing Company and Subsidiaries BUSINESS SEGMENTS (Unaudited) - -------------------------------------------------------------------------------- BUSINESS SEGMENT First First INFORMATION Qtr Qtr (MILLIONS) 2001 2000 NET SALES Industrial $ 865 $ 915 Transportation, Graphics and Safety 893 874 Health Care 829 769 Consumer and Office 695 690 Electro and Communications 606 507 Specialty Material 281 314 Corporate and Unallocated 1 6 - -------------------------------------------------------------------------------- Total Company $4,170 $4,075 OPERATING INCOME Industrial $ 170 $ 185 Transportation, Graphics and Safety 177 209 Health Care 165 193 Consumer and Office 113 105 Electro and Communications 68 89 Specialty Material 48 51 Corporate and Unallocated (4) (17) - -------------------------------------------------------------------------------- Total Company $ 737 $ 815 First quarter 2001 operating income includes non-recurring costs of $23 million recorded in cost of sales. These non-recurring costs were primarily acquisition related costs of $10 million in Health Care, $7 million in Transportation, Graphics and Safety, and $6 million in the Electro and Communications segment. First quarter 2000 operating income includes a $50 million benefit relating to the termination of a product distribution agreement in the Health Care segment.