EXHIBIT 99.1

FOR IMMEDIATE RELEASE

3M Reports Record Second-Quarter Sales and Earnings;
Company Raises Earnings Estimate for 2004

ST. PAUL, Minn. — July 19, 2004 — 3M (NYSE: MMM) today announced its second quarter 2004 sales and earnings results.

Net income for the quarter was $773 million, or $0.97 per share, versus $619 million, or $0.78 per share, in the second quarter of 2003. Second quarter net income increased nearly 25 percent, and per-share earnings increased more than 24 percent.

“Solid sales growth and continued operational efficiency produced another outstanding earnings result,” said W. James McNerney, Jr., 3M chairman and CEO. “Our employees continued to drive growth through strong connections with customers, leveraging our corporate initiatives and diverse technology base while maintaining good cost discipline.”

Worldwide sales in the second quarter totaled $5.01 billion, 9.5 percent higher than in the year-earlier quarter. Global sales volumes increased 7.7 percent, which is the fourth consecutive quarter of volume growth above 7 percent. Local-currency sales (which excludes the impact of currency translation on sales) increased 18.2 percent in Display and Graphics, 10.4 percent in Industrial, 4.8 percent in Electro and Communications, 4.3 percent in Transportation, 4.2 percent in Consumer and Office, 3.4 percent in Safety, Security and Protection Services, and .3 percent in Health Care. Currency effects increased sales by 2.8 percent while selling prices declined 1.0 percent.

Sales outside the United States totaled $3.04 billion, an increase of 14.4 percent versus the second quarter of last year. Volumes increased 10.9 percent, while selling prices declined 1.3 percent. Currency translation effects increased international sales by 4.8 percent. Local-currency sales increased 18.5 percent in Asia Pacific, 13.8 percent in the combined Latin America, Africa and Canada region and 0.5 percent in Europe.

In the United States, sales totaled $1.97 billion, up 2.7 percent from the same quarter of 2003. Volumes increased 3.1 percent, and selling prices declined by 0.4 percent.

“Our broad-based growth in the second quarter reflects the fundamental strength of the 3M business model. Organic growth remains our focus, enabled by the 3M Acceleration initiative and the market focused organization structure we established in 2003,” McNerney said. “Although continued geopolitical uncertainty causes us to maintain a conservative economic outlook, we are confident in our ability to deliver solid results.”

3M also increased its earnings outlook for 2004. The company now expects reported earnings will be within a range of $3.72 to $3.75 per share for the year, versus a previous expectation of $3.60 to $3.70 per share. 3M expects third-quarter earnings per share to match the company’s record second quarter performance of .97 per share.

Petrick D. Campbell, 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.




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. Changes in such assumptions or factors, including without limitation the outcome of and information derived from pending Congressional action concerning asbestos-related litigation, could produce significantly different results.

About 3M — A Global, Diversified Technology Company
Every day, 3M people find new ways to make amazing things happen. Wherever they are, whatever they do, the company’s customers know they can rely on 3M to help make their lives better. 3M’s brands include icons such as Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti. Serving customers in more than 200 countries around the world, the company’s 67,000 people use their expertise, technologies and global strength to lead in major markets including consumer and office; display and graphics; electronics and telecommunications; safety, security and protection services; health care; industrial and transportation.

Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti are trademarks of 3M.




3M Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per-share amounts)
(Unaudited)

Three-months ended
June 30

Six-months ended
June 30

2004
2003
2004
2003
Net sales     $ 5,012   $ 4,580   $ 9,951   $ 8,898  




Operating expenses  
  Cost of sales    2,452    2,323    4,888    4,534  
  Selling, general and  
    administrative expenses    1,084    1,021    2,188    1,984  
  Research, development and  
    related expenses    290    276    572    546  
  Other expense                93  




            Total    3,826    3,620    7,648    7,157  




Operating income    1,186    960    2,303    1,741  




Interest expense and income  
  Interest expense    16    24    35    47  
  Interest income    (10 )  (5 )  (20 )  (11 )




         Total    6    19    15    36  




Income before income taxes  
  and minority interest    1,180    941    2,288    1,705  
Provision for income taxes    389    310    755    558  
Minority interest    18    12    38    26  




Net income   $ 773   $ 619   $ 1,495   $ 1,121  




Weighted average common  
  shares outstanding – basic    782.5    781.8    782.7    780.9  
Earnings per share – basic   $ 0.99   $ 0.79   $ 1.91   $ 1.44  




Weighted average common  
  shares outstanding – diluted    799.7    792.3    799.6    791.4  
Earnings per share – diluted   $ 0.97   $ 0.78   $ 1.87   $ 1.42  




Cash dividends paid  
  per common share   $ 0.36   $ 0.33   $ 0.72   $ 0.66  








3M Company and Subsidiaries
SUPPLEMENTAL CONSOLIDATED STATEMENT OF INCOME INFORMATION
(Millions, except per-share amounts)
(Unaudited)

Six-months ended
June 30, 2004

Six-months ended
June 30, 2003

Excluding
special
items

Special
items

Reported
total

Excluding
special
items (a)

Special
items (a)

Reported
total

Net sales     $ 9,951   $   $ 9,951   $ 8,898   $   $ 8,898  






Operating expenses  
  Cost of sales    4,888        4,888    4,534        4,534  
  Selling, general and  
    administrative  
    expenses    2,188        2,188    1,984        1,984  
  Research, development  
    and related expenses    572        572    546        546  
  Other expense                    93    93  






      Total    7,648        7,648    7,064    93    7,157  






Operating  
  income (loss)    2,303        2,303    1,834    (93 )  1,741  
Interest expense  
  and (income), net    15        15    36        36  






Income (loss) before  
 income taxes and  
 minority interest    2,288        2,288    1,798    (93 )  1,705  
Provision (benefit)  
 for income taxes    755        755    593    (35 )  558  
Effective tax rate    33.0 %      33.0 %  33.0 %      32.8 %
Minority interest    38        38    26        26  






Net income (loss)   $ 1,495   $   $ 1,495   $ 1,179   $ (58 ) $ 1,121  






 Weighted average  
  diluted shares    799.6        799.6    791.4    791.4    791.4  
 Net income per  
  diluted share   $ 1.87   $   $ 1.87   $ 1.49   $ (0.07 ) $ 1.42  










(a)     In addition to disclosing results that are determined in accordance with U.S. generally accepted accounting principles (GAAP), the company also discloses non-GAAP results that exclude special items. Special items represent significant charges or credits that are important to an understanding of the company’s ongoing operations. The company provides reconciliations of its non-GAAP financial reporting to the most comparable GAAP reporting. The company believes that discussion of results excluding special items provides a useful analysis of ongoing operating trends. Earnings per share and other amounts before special items are not measures recognized under GAAP. The determination of special items may not be comparable to similarly titled measures used by other companies. During the first quarter of 2003, 3M recorded pretax charges of $93 million ($58 million after-tax) related to an adverse court ruling in a lawsuit filed against 3M in 1997 by LePage’s Inc.












3M Company and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(Unaudited)

Jun. 30,
2004

Jun. 30,
2003

Dec. 31,
2003

ASSETS                
Current assets  
  Cash and cash equivalents   $ 2,314   $ 974   $ 1,836  
  Accounts receivable – net    2,913    2,771    2,714  
  Inventories    1,940    1,990    1,816  
  Other current assets    1,460    1,302    1,354  



        Total current assets    8,627    7,037    7,720  
  Investments    211    233    218  
  Property, plant and equipment – net    5,456    5,555    5,609  
  Goodwill, intangible assets and other assets    4,068    3,741    4,053  



        Total assets   $ 18,362   $ 16,566   $ 17,600  




LIABILITIES AND STOCKHOLDERS’ EQUITY
  
Current liabilities  
  Short-term borrowings and  
      current portion of long-term debt   $ 1,358   $ 1,059   $ 1,202  
  Accounts payable    1,108    972    1,087  
  Accrued payroll    487    438    436  
  Accrued income taxes    1,094    813    880  
  Other current liabilities    1,547    1,545    1,477  



        Total current liabilities    5,594    4,827    5,082  
Long-term debt    1,303    1,962    1,735  
Other liabilities    3,008    2,822    2,898  



        Total liabilities    9,905    9,611    9,715  



Total stockholders’ equity – net    8,457    6,955    7,885  
  Shares outstanding  
        June 30, 2004: 782,703,301 shares  
        June 30, 2003: 783,006,860 shares  
        December 31, 2003: 784,117,360 shares  



        Total liabilities and stockholders' equity   $ 18,362   $ 16,566   $ 17,600  







3M Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in millions)
(Unaudited)

Six-months ended
June 30

2004
2003
SUMMARY OF CASH FLOW:            

NET CASH PROVIDED BY
  
  OPERATING ACTIVITIES   $ 2,237   $ 1,890  


Cash flows from investing activities:  
    Purchases of property, plant  
        and equipment    (378 )  (264 )
    Acquisitions, net of cash acquired    (86 )  (424 )
    Other investing activities    29    74  


NET CASH USED IN  
  INVESTING ACTIVITIES    (435 )  (614 )


Cash flows from financing activities:  
    Change in debt    (286 )  (349 )
    Purchases of treasury stock    (792 )  (280 )
    Reissuances of treasury stock    352    270  
    Dividends paid to stockholders    (564 )  (515 )
    Other financing activities    (23 )  (23 )


NET CASH USED IN  
  FINANCING ACTIVITIES    (1,313 )  (897 )


Effect of exchange rate  
  changes on cash    (11 )  (23 )


Net increase in cash and  
  cash equivalents    478    356  
Cash and cash equivalents at  
  beginning of period    1,836    618  


Cash and cash equivalents at  
  end of period   $ 2,314   $ 974  






3M Company and Subsidiaries
SUPPLEMENTAL CASH FLOW AND
NET WORKING CAPITAL TURNS INFORMATION

(Dollars in millions)
(Unaudited)

Six-months ended
June 30

2004
2003
FREE CASH FLOW (Non-GAAP measure):            
Net cash provided by  
  operating activities   $ 2,237   $ 1,890  
Purchases of property, plant  
  and equipment    (378 )  (264 )


Free Cash Flow (a)   $ 1,859   $ 1,626  



NET WORKING CAPITAL TURNS (Non-GAAP measure):
  

Net Working Capital Turns (b)
    5.4    4.8  



(a)     Free cash flow is not defined under GAAP. Therefore, it is considered a non-GAAP measure. Non-GAAP measures should not be considered a substitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The company believes free cash flow is a useful measure of performance and uses this measure as an indication of the strength of the company and its ability to generate cash.

(b)     The company also uses non-GAAP measures that place emphasis and focus on certain working capital assets and liabilities. 3M’s net working capital index is defined as quarterly net sales multiplied by four, divided by ending net accounts receivable plus inventory less accounts payable. This measure is not recognized under U.S. generally accepted accounting principles and may not be comparable to similarly titled measures used by other companies.




3M Company and Subsidiaries
SALES CHANGE ANALYSIS
(Unaudited)

Three-Months Ended June 30, 2004

Sales Change Analysis
By Geographic Area
United
States

Inter-
national


Worldwide

Volume – core      2.3 %  10.6 %  7.2 %

Volume – acquisitions
    0.8    0.3    0.5  



Volume – total    3.1    10.9    7.7  

Price
    (0.4 )  (1.3 )  (1.0 )



Total local-currency sales    2.7    9.6    6.7  

Translation
        4.8    2.8  



Total sales change    2.7 %  14.4 %  9.5 %



 
Sales Change Analysis
By Business Segment
Local-
currency
Sales


Trans-
lation

Total
Sales
Change

Health Care    0.3 %  2.8 %  3.1 %

Industrial
    10.4    2.8    13.2  

Display and Graphics
    18.2    4.3    22.5  

Consumer and Office
    4.2    1.7    5.9  

Safety, Security and Protection
  
  Services    3.4    2.2    5.6  

Electro and Communications
    4.8    2.0    6.8  

Transportation
    4.3    3.1    7.4  




3M Company and Subsidiaries
SALES CHANGE ANALYSIS
(Unaudited)

Six-Months Ended June 30, 2004

Sales Change Analysis
By Geographic Area
United
States

Inter-
national


Worldwide

Volume – core      2.8 %  11.2 %  7.7 %

Volume – acquisitions
    0.7    0.2    0.4  



Volume – total    3.5    11.4    8.1  

Price
    (0.1 )  (1.0 )  (0.7 )



Total local-currency sales    3.4    10.4    7.4  

Translation
        7.5    4.4  



Total sales change    3.4 %  17.9 %  11.8 %



 
Sales Change Analysis
By Business Segment
Local-
currency
Sales


Trans-
lation

Total
Sales
Change

Health Care    1.3 %  4.7 %  6.0 %

Industrial
    9.5    4.5    14.0  

Display and Graphics
    19.2    5.6    24.8  

Consumer and Office
    5.7    3.2    8.9  

Safety, Security and Protection
  
  Services    6.0    4.0    10.0  

Electro and Communications
    3.6    3.3    6.9  

Transportation
    6.2    5.0    11.2  




3M Company and Subsidiaries
BUSINESS SEGMENTS
(Dollars in millions)
(Unaudited)

BUSINESS
SEGMENT
INFORMATION
Three-months ended
June 30

Six-months ended
June 30

(Millions) 2004
2003
2004
2003
NET SALES                    
Health Care   $ 1,049   $ 1,017   $ 2,080   $ 1,963  
Industrial    949    838    1,892    1,659  
Display and Graphics    881    719    1,723    1,380  
Consumer and Office    675    637    1,361    1,249  
Safety, Security and Protection Services    547    518    1,074    976  
Electro and Communications    489    458    954    892  
Transportation    411    383    849    764  
Corporate and Unallocated    11    10    18    15  




Total Company   $ 5,012   $ 4,580   $ 9,951   $ 8,898  





OPERATING INCOME
  
Health Care   $ 274   $ 263   $ 536   $ 501  
Industrial    167    102    333    234  
Display and Graphics    311    209    605    391  
Consumer and Office    123    108    245    218  
Safety, Security and Protection Services    136    131    261    236  
Electro and Communications    79    71    144    118  
Transportation    106    95    225    195  
Corporate and Unallocated    (10 )  (19 )  (46 )  (152 )




Total Company   $ 1,186   $ 960   $ 2,303   $ 1,741  





The following 2004 and 2003 charges were recorded in Corporate and Unallocated for the six-months ended June 30, 2004 and 2003. First quarter 2004 includes $16 million in expense related to a reduction in breast implant receivables following an arbitration panel ruling in the first quarter that rejected the company’s claims for recovery under certain of its claims-made policies. During the first quarter of 2003, 3M recorded pretax charges of $93 million related to an adverse court ruling in a lawsuit filed against 3M in 1997 by LePage’s Inc. First quarter 2003 also includes certain acquisition-related costs and respirator mask/asbestos litigation expenses.




Investor Contacts:   Mark Colin   Media Contact:   John Cornwell  
  3M
(651) 733-8206
    3M
(651) 733-7698
 
 
Bruce Jermeland
3M
(651) 733-1807
 

From:
3M Public Relations and Corporate Communications
3M Center, Building 225-1S-15
St. Paul, MN 55144-1000