ST. PAUL, Minn.--(BUSINESS WIRE)--3M (NYSE:MMM) today announced its sales and profit results for the fourth-quarter and calendar year 2005.
Fourth-quarter net income before a cumulative effect of accounting change related to FIN 47(a) was $796 million, or $1.04 per share, versus $720 million, or $0.91 per share, in the fourth quarter of 2004. Earnings per-share increased 14.3 percent, excluding the effect of FIN 47(a). Fourth-quarter reported net income was $761 million, or $0.99 per share.
"This was a great quarter for 3M with broad-based contributions from our diverse portfolio and particularly strong results in our industrial and electronics-related businesses," said George W. Buckley, 3M chairman, president and CEO. "This quarter demonstrates the value 3M's innovative products bring to customers and the superb capability of the 3M organization to overcome the headwinds of raw material price inflation. I would like to thank 3M employees worldwide for leveraging the combination of solid sales growth and strong operational performance into another double-digit earnings per share increase in 2005."
Fourth-quarter worldwide sales totaled $5.3 billion, up 4.6 percent compared to the fourth quarter of 2004. Local-currency sales increased 7.3 percent, including 2.1 percent from the acquisition of CUNO Inc. Currency effects decreased sales by 2.7 percent. Local-currency sales increased 18.2 percent in Industrial (including 12.0 percent due to CUNO), 10.9 percent in Electro and Communications, 10.2 percent in Display and Graphics, 9.7 percent in Safety, Security and Protection Services, 3.3 percent in Transportation, 0.5 percent in Consumer and Office, and were unchanged in Health Care.
For the 2005 calendar year, reported net income was $3.2 billion, or $4.12 per share. Net income excluding the effects of FIN 47(a) and the American Jobs Creation Act(b), totaled $3.3 billion or $4.26 per share, up from $3.0 billion or $3.75 per share in 2004, an EPS increase of 13.6 percent.
Calendar year 2005 sales totaled $21.2 billion, a 5.8 percent increase over 2004. Local-currency sales increased 5.1 percent, including 0.9 percent from the acquisition of CUNO. Selling prices increased 0.6 percent, and currency effects increased sales by 0.7 percent. For the calendar year, local-currency sales growth was driven by increases of 9.3 percent in Industrial (including 5.1 percent from CUNO); 6.9 percent in Safety, Security and Protection Services; 5.0 percent in Transportation; and 4.2 percent in Electro and Communications.
"Looking ahead, we will focus on driving profitable growth by investing in our most promising commercialization, geographic and technology opportunities, and part of this investment will come from savings generated through continuous operational improvements," said Buckley. "After long admiring 3M for its unique culture of innovation, decades of success, wealth of technology and outstanding people, I look forward to being part of the team that will make real the tremendous potential of 3M in 2006 and beyond."
3M also provided its full-year 2006 earnings estimates. The company expects 2006 per share earnings to be in the range of $4.45 to $4.60, including an estimated $0.16 per share cost of stock options expensing. 3M has elected to restate prior year earnings to reflect stock options expensing, the details of which will be described in the 2006 first quarter 10-Q. Restated 2005 earnings per share will be $4.12(d), including a $0.14 per share cost from expensing stock options, and excluding the one-time impacts of FIN 47(a) and the Jobs Act(b). Calendar year 2006 organic local-currency growth is expected to be between 4 and 7 percent, with an additional approximately 1.4 percent local currency growth from the CUNO acquisition.
For the first quarter of 2006, the company expects earnings per share to be in the range of $1.10 to $1.14, including an estimated $0.02 per share cost from stock options expensing(c). In the first quarter of 2005, 3M earned $0.97 per share adjusted to reflect stock options expensing of $0.06 per share. The company expects first-quarter, local-currency sales growth of 4 to 7 percent with an additional estimated 2.3 percent from CUNO.
George W. Buckley, and Patrick D. Campbell, senior vice president and chief financial officer, will conduct an investor teleconference at 10 a.m. Eastern Time (9 a.m. Central Time) today. Investors can access a webcast of this conference, along with related charts and materials, at http://investor.3M.com.
(a) In March 2005, the FASB issued Interpretation No. 47, "Accounting for Conditional Asset Retirement Obligations -- an interpretation of FASB Statement No.143" ("FIN 47"). In adopting FIN 47 in the fourth quarter, 3M recorded a noncash charge of $35 million after-tax as a cumulative effect of change in accounting principle in the accompanying Consolidated Statement of Income. This charge represents conditional retirement obligations associated with 3M long-lived assets.
(b) During the quarter ended June 30, 2005, the company completed its evaluation of the repatriation provision of the American Jobs Creation Act of 2004 (Jobs Act) and recognized $75 million, net of available foreign tax credits, of related tax liability. The company reinvested approximately $1.8 billion of foreign earnings in the United States pursuant to the provisions of the Jobs Act in 2005.
(c) For calendar year 2006, 3M expects an estimated $0.16 earnings per share cost from stock options expensing, with an estimated $0.02 per share cost in the first quarter, an estimated $0.08 per share cost in the second quarter, and estimated $0.03 per share costs in each of the third and fourth quarters. 3M expects a higher expense when the company's annual grant is made in the second quarter, due to a requirement under FAS 123R to immediately expense stock options granted to retirement-eligible employees.
(d) Reported 2005 earnings per share will be $3.98, including the restatement for stock options expensing and the one-time impacts of FIN 47(a) and the Jobs Act(b).
Forward-Looking Statements
This news release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) about the company's financial results and estimates, business prospects, and products under development that involve substantial risks and uncertainties. You can identify these statements by the use of words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic conditions; (2) competitive conditions and customer preferences; (3) foreign currency exchange rates and fluctuations in those rates; (4) the timing and acceptance of new product offerings; (5) the availability and cost of purchased components, compounds, raw materials and energy (including oil and natural gas and their derivatives) due to shortages, increased demand or supply interruptions (including those caused by natural and other disasters and other events); (6) the impact of acquisitions, strategic alliances, divestitures, and other unusual events resulting from portfolio management actions and other evolving business strategies, and possible organizational restructuring; (7) generating less productivity improvements than estimated; and (8) legal proceedings, including the outcome of and information derived from pending Congressional action concerning asbestos-related litigation and other significant developments that could occur in the legal proceedings described in the company's Annual Report on Form 10-K for the year-ended Dec. 31, 2004 and the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2005, June 30, 2005, and Sept. 30, 2005 (the "Reports"). Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the reports. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this release as a result of new information or future events or developments.
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 Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti. Serving customers in more than 200 countries around the world, the company's 69,000 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. For more information, including the latest product and technology news, visit www.3M.com.
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
|
|
Twelve-months ended
|
|
|
December 31
|
|
December 31
|
|
|
2005 |
|
2004 |
|
2005 |
|
2004 |
| Net sales |
|
$5,325 |
|
|
$5,091 |
|
|
$21,167 |
|
|
$20,011 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
| Cost of sales |
|
2,618 |
|
|
2,613 |
|
|
10,381 |
|
|
9,958 |
|
| Selling, general and |
|
|
|
|
|
|
|
|
| administrative expenses (e) |
|
1,178 |
|
|
1,084 |
|
|
4,535 |
|
|
4,281 |
|
| Research, development and |
|
|
|
|
|
|
|
|
| related expenses (e) |
|
317 |
|
|
302 |
|
|
1,242 |
|
|
1,194 |
|
| Total |
|
4,113 |
|
|
3,999 |
|
|
16,158 |
|
|
15,433 |
|
| Operating income |
|
1,212 |
|
|
1,092 |
|
|
5,009 |
|
|
4,578 |
|
| Interest expense and income |
|
|
|
|
|
|
|
|
| Interest expense |
|
23 |
|
|
17 |
|
|
82 |
|
|
69 |
|
| Interest income |
|
(11 |
) |
|
(14 |
) |
|
(56 |
) |
|
(46 |
) |
| Total |
|
12 |
|
|
3 |
|
|
26 |
|
|
23 |
|
| Income before income taxes, |
|
|
|
|
|
|
|
|
| minority interest and |
|
|
|
|
|
|
|
|
| cumulative effect of |
|
|
|
|
|
|
|
|
| accounting change |
|
1,200 |
|
|
1,089 |
|
|
4,983 |
|
|
4,555 |
|
| |
| Provision for income taxes |
|
389 |
|
|
359 |
|
|
1,694 |
|
|
1,503 |
|
| Minority interest |
|
15 |
|
|
10 |
|
|
55 |
|
|
62 |
|
| Income before cumulative effect |
|
|
|
|
|
|
|
|
| of accounting change |
|
796 |
|
|
720 |
|
|
3,234 |
|
|
2,990 |
|
| Cumulative effect of accounting |
|
|
|
|
|
|
|
|
| change |
|
(35 |
) |
|
- |
|
|
(35 |
) |
|
- |
|
| Net income |
|
$761 |
|
|
$720 |
|
|
$3,199 |
|
|
$2,990 |
|
| |
| |
| |
| Weighted average common shares |
|
|
|
|
|
|
|
|
| outstanding - basic |
|
757.6 |
|
|
776.2 |
|
|
764.9 |
|
|
780.5 |
|
| Earnings per share - basic |
|
|
|
|
|
|
|
|
| Income before cumulative |
|
|
|
|
|
|
|
|
| effect of accounting change |
|
$1.05 |
|
|
$0.93 |
|
|
$4.23 |
|
|
$3.83 |
|
| Cumulative effect of |
|
|
|
|
|
|
|
|
| accounting change |
|
(0.05 |
) |
|
- |
|
|
(0.05 |
) |
|
- |
|
| Net Income |
|
$1.00 |
|
|
$0.93 |
|
|
$4.18 |
|
|
$3.83 |
|
| |
| Weighted average common shares |
|
|
|
|
|
|
|
|
| outstanding - diluted |
|
768.2 |
|
|
790.4 |
|
|
776.9 |
|
|
796.5 |
|
| Earnings per share - diluted |
|
|
|
|
|
|
|
|
| Income before cumulative |
|
|
|
|
|
|
|
|
| effect of accounting change |
|
$1.04 |
|
|
$0.91 |
|
|
$4.16 |
|
|
$3.75 |
|
| Cumulative effect of |
|
|
|
|
|
|
|
|
| accounting change |
|
(0.05 |
) |
|
- |
|
|
(0.04 |
) |
|
- |
|
| Net income |
|
$0.99 |
|
|
$0.91 |
|
|
$4.12 |
|
|
$3.75 |
|
| |
| Cash dividends paid |
|
|
|
|
|
|
|
|
| per common share |
|
$0.42 |
|
|
$0.36 |
|
|
$1.68 |
|
|
$1.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (e) Certain amounts in the prior periods' consolidated financial |
| statements have been reclassified to conform to the current period |
| presentation. Internally developed patent costs have been reclassified |
| to "Research, development and related expenses" from "Selling, general |
| and administrative expenses". Costs of internally developed patents |
| include costs and fees incurred to prepare, file, secure and maintain |
| patents. |
| |
| 3M Company and Subsidiaries |
| SUPPLEMENTAL CONSOLIDATED STATEMENT OF INCOME INFORMATION |
| (Millions, except per-share amounts) |
| (Unaudited) |
|
|
|
|
Twelve-months ended |
|
|
December 31, 2005 |
|
|
Excluding |
|
|
|
|
|
|
special |
|
Special |
|
Reported |
|
|
items (f) |
|
items (f) |
|
total |
| Net sales |
|
$21,167 |
|
|
$- |
|
|
$21,167 |
|
| Operating expenses |
|
|
|
|
|
|
| Cost of sales |
|
10,381 |
|
|
- |
|
|
10,381 |
|
| Selling, general and |
|
|
|
|
|
|
| administrative expenses |
|
4,535 |
|
|
- |
|
|
4,535 |
|
| Research, development and related |
|
|
|
|
|
|
| expenses |
|
1,242 |
|
|
- |
|
|
1,242 |
|
| Total |
|
16,158 |
|
|
- |
|
|
16,158 |
|
| Operating income |
|
5,009 |
|
|
- |
|
|
5,009 |
|
| |
| Interest expense and (income), net |
|
26 |
|
|
- |
|
|
26 |
|
| |
| Income before income taxes, |
|
|
|
|
|
|
| minority interest and cumulative |
|
|
|
|
|
|
| effect of accounting change |
|
4,983 |
|
|
- |
|
|
4,983 |
|
| |
| Provision for income taxes |
|
1,619 |
|
|
75 |
|
|
1,694 |
|
| Effective tax rate |
|
32.5 |
% |
|
- |
|
|
34.0 |
% |
| |
| Minority interest |
|
55 |
|
|
- |
|
|
55 |
|
| Income before cumulative effect of |
|
|
|
|
|
|
| accounting change |
|
3,309 |
|
|
(75 |
) |
|
3,234 |
|
| Cumulative effect of accounting |
|
|
|
|
|
|
| change |
|
- |
|
|
(35 |
) |
|
(35 |
) |
| Net income (loss) |
|
3,309 |
|
|
(110 |
) |
|
3,199 |
|
| |
| Weighted average diluted shares |
|
776.9 |
|
|
776.9 |
|
|
776.9 |
|
| Income before cumulative effect |
|
|
|
|
|
|
| of accounting change |
|
$4.26 |
|
|
$(0.10 |
) |
|
$4.16 |
|
| Cumulative effect of accounting |
|
|
|
|
|
|
| change |
|
- |
|
|
(0.04 |
) |
|
(0.04 |
) |
| Net income (loss) per diluted |
|
|
|
|
|
|
| shares |
|
$4.26 |
|
|
$(0.14 |
) |
|
$4.12 |
|
|
|
|
|
|
|
|
|
|
|
| (f) 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 quarter ended June |
| 30, 2005, the Company completed its evaluation of the repatriation |
| provision of the American Jobs Creation Act of 2004 (Jobs Act) and |
| recognized $75 million, net of available foreign tax credits, of |
| related tax liability. The Company reinvested approximately $1.8 |
| billion of foreign earnings in the United States pursuant to the |
| provisions of the Jobs Act in 2005. In March 2005, the FASB issued |
| Interpretation No. 47, "Accounting for Conditional Asset Retirement |
| Obligations--an interpretation of FASB Statement No.143" ("FIN 47"). |
| In adopting FIN 47 in the fourth quarter of 2005, 3M recorded a |
| non-cash charge of $35 million after-tax as a cumulative effect of |
| change in accounting principle. This charge represents conditional |
| retirement obligations associated with 3M long-lived assets. |
| |
| 3M Company and Subsidiaries |
| CONDENSED CONSOLIDATED BALANCE SHEET |
| (Dollars in millions) |
| (Unaudited) |
| |
|
|
Dec. 31,
|
|
Dec. 31,
|
|
ASSETS
|
|
2005
|
|
2004
|
| Current assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$1,072 |
|
|
$2,757 |
|
| Accounts receivable - net |
|
2,838 |
|
|
2,792 |
|
| Inventories |
|
2,162 |
|
|
1,897 |
|
| Other current assets |
|
1,043 |
|
|
1,274 |
|
| Total current assets |
|
7,115 |
|
|
8,720 |
|
| Investments |
|
272 |
|
|
227 |
|
| Property, plant and equipment - net |
|
5,593 |
|
|
5,711 |
|
| Prepaid pension and postretirement benefits |
|
2,951 |
|
|
2,591 |
|
| Goodwill, intangible assets and other assets (g) |
|
4,582 |
|
|
3,459 |
|
| Total assets |
|
$20,513
|
|
|
$20,708
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Short-term borrowings and current portion of long- |
|
|
|
|
|
|
| term debt |
|
$1,072 |
|
|
$2,094 |
|
| Accounts payable |
|
1,256 |
|
|
1,168 |
|
| Accrued payroll |
|
469 |
|
|
487 |
|
| Accrued income taxes |
|
989 |
|
|
867 |
|
| Other current liabilities |
|
1,452 |
|
|
1,455 |
|
| Total current liabilities |
|
5,238 |
|
|
6,071 |
|
| Long-term debt |
|
1,309 |
|
|
727 |
|
| Other liabilities |
|
3,866 |
|
|
3,532 |
|
| Total liabilities |
|
10,413 |
|
|
10,330 |
|
| Total stockholders' equity - net |
|
10,100 |
|
|
10,378 |
|
| Shares outstanding |
|
|
|
|
|
|
| December 31, 2005: 754,538,387 shares |
|
|
|
|
|
|
| December 31, 2004: 773,518,281 shares |
|
|
|
|
|
|
| Total liabilities and stockholders' equity |
|
$20,513
|
|
|
$20,708
|
|
|
|
|
|
|
|
|
| (g) The acquisition of CUNO in the third quarter of 2005 increased the |
| "Goodwill, intangible assets and other assets" balance by |
| approximately $1.3 billion. |
|
|
|
| 3M Company and Subsidiaries |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
| (Dollars in millions) |
| (Unaudited) |
|
|
|
|
|
Twelve-months ended
|
|
|
December 31
|
|
|
2005
|
|
2004
|
|
SUMMARY OF CASH FLOW:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
$4,258 |
|
|
$4,282 |
|
| Cash flows from investing activities: |
|
|
|
|
| Purchases of property, plant and equipment |
|
(943 |
) |
|
(937 |
) |
| Acquisitions, net of cash acquired |
|
(1,293 |
) |
|
(73 |
) |
| Other investing activities |
|
(5 |
) |
|
72 |
|
| NET CASH USED IN INVESTING ACTIVITIES |
|
(2,241 |
) |
|
(938 |
) |
| Cash flows from financing activities: |
|
|
|
|
| Change in debt |
|
(485 |
) |
|
(111 |
) |
| Purchases of treasury stock |
|
(2,377 |
) |
|
(1,791 |
) |
| Reissuances of treasury stock |
|
545 |
|
|
508 |
|
| Dividends paid to stockholders |
|
(1,286 |
) |
|
(1,125 |
) |
| Other financing activities |
|
(76 |
) |
|
(15 |
) |
| NET CASH USED IN FINANCING ACTIVITIES |
|
(3,679 |
) |
|
(2,534 |
) |
| Effect of exchange rate changes on cash |
|
(23 |
) |
|
111 |
|
| Net increase (decrease) in cash and cash |
|
|
|
|
| equivalents |
|
(1,685 |
) |
|
921 |
|
| Cash and cash equivalents at beginning of period |
|
2,757 |
|
|
1,836 |
|
| Cash and cash equivalents at end of period |
|
$1,072 |
|
|
$2,757 |
|
| |
| 3M Company and Subsidiaries |
| SUPPLEMENTAL CASH FLOW AND |
| OTHER SUPPLEMENTAL FINANCIAL INFORMATION |
| (Dollars in millions) |
| (Unaudited) |
|
|
|
|
|
Twelve-months ended |
|
|
December 31 |
|
|
2005
|
|
2004
|
| NON-GAAP MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Free Cash Flow: |
|
|
|
|
|
|
| Net cash provided by operating activities |
|
$4,258 |
|
|
$4,282 |
|
| Purchases of property, plant and equipment |
|
(943 |
) |
|
(937 |
) |
| Free Cash Flow (h) |
|
$3,315 |
|
|
$3,345 |
|
| |
| OTHER NON-GAAP MEASURES: |
|
|
|
|
|
|
| Net Working Capital Turns (i) |
|
5.7 |
|
|
5.8 |
|
| |
|
Reported (before cumulative effect of accounting change):
|
| Economic Profit (j) |
|
$1,882 |
|
|
$1,758 |
|
| Return on Invested Capital (j) |
|
23.2 |
% |
|
23.4 |
% |
| |
| Excluding Special Items in 2005: |
|
|
|
|
|
|
| Economic Profit (j) |
|
$1,957 |
|
|
$1,758 |
|
| Return on Invested Capital (j) |
|
23.7 |
% |
|
23.4 |
% |
|
|
|
|
|
|
|
| (h) Free cash flow is not defined under U.S. generally accepted |
| accounting principles (GAAP). Therefore, it 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. |
| |
| (i) The company uses various working capital 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. |
| |
| (j) The company uses non-GAAP measures to focus on shareholder value |
| creation. 3M's Economic Profit is defined as after-tax operating |
| income less a charge for operating capital. 3M also uses Return on |
| Invested Capital, defined as after-tax operating income divided by |
| average operating capital. This measure is presented as reported and |
| also excluding 2005 special items. 3M's reported economic profit |
| calculation also excludes the impact of the adoption of FIN 47. |
| Special items were previously defined within the Supplemental |
| Consolidated Statement of Income Information section of this document. |
| These measures are 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 Dec. 31, 2005
|
|
|
|
|
|
|
|
|
|
|
|
Sales Change Analysis
|
|
United
|
|
Inter-
|
|
|
|
|
By Geographic Area
|
|
States
|
|
national
|
|
Worldwide
|
| Volume - organic |
|
(1.4 |
)% |
|
9.4 |
% |
|
5.1 |
% |
|
|
| Volume - acquisitions |
|
3.2 |
|
|
1.3 |
|
|
2.1 |
|
| Volume - total |
|
1.8 |
|
|
10.7 |
|
|
7.2 |
|
| |
| Price |
|
3.2 |
|
|
(1.9 |
) |
|
0.1 |
|
| Total local-currency sales |
|
5.0 |
|
|
8.8 |
|
|
7.3 |
|
| |
| Translation |
|
- |
|
|
(4.5 |
) |
|
(2.7 |
) |
| Total sales change |
|
5.0 |
% |
|
4.3 |
% |
|
4.6 |
% |
| |
| |
| Worldwide |
|
Local- |
|
|
|
Total |
| Sales Change Analysis |
|
currency |
|
Trans- |
|
Sales |
| By Business Segment |
|
Sales |
|
lation |
|
Change |
| Health Care |
|
0.0 |
% |
|
(3.6 |
)% |
|
(3.6 |
)% |
| |
| Industrial (k) |
|
18.2 |
|
|
(2.6 |
) |
|
15.6 |
|
| |
| Display and Graphics |
|
10.2 |
|
|
(2.1 |
) |
|
8.1 |
|
| |
| Consumer and Office |
|
0.5 |
|
|
(1.7 |
) |
|
(1.2 |
) |
| |
| Electro and Communications |
|
10.9 |
|
|
(3.3 |
) |
|
7.6 |
|
| |
| Safety, Security and Protection |
|
|
|
|
|
|
| Services |
|
9.7 |
|
|
(2.6 |
) |
|
7.1 |
|
| |
| Transportation |
|
3.3 |
|
|
(3.7 |
) |
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
(k) Industrial includes a 12.0% benefit due to the CUNO acquisition.
|
|
3M Company andSubsidiaries
|
| SALES CHANGE ANALYSIS |
| (Unaudited) |
| |
|
|
Twelve-Months Ended Dec. 31, 2005 |
| |
| |
| Sales Change Analysis |
|
United |
|
Inter- |
|
|
| By Geographic Area |
|
States |
|
national |
|
Worldwide |
| Volume - organic |
|
1.0 |
% |
|
5.1 |
% |
|
3.5 |
% |
| |
| Volume - acquisitions |
|
1.4 |
|
|
0.7 |
|
|
1.0 |
|
| Volume - total |
|
2.4 |
|
|
5.8 |
|
|
4.5 |
|
| |
| Price |
|
2.5 |
|
|
(0.7 |
) |
|
0.6 |
|
| Total local-currency sales |
|
4.9 |
|
|
5.1 |
|
|
5.1 |
|
| |
| Translation |
|
- |
|
|
1.2 |
|
|
0.7 |
|
| Total sales change |
|
4.9 |
% |
|
6.3 |
% |
|
5.8 |
% |
| |
| |
| Sales Change Analysis |
|
Local- |
|
|
|
Total |
| By International |
|
currency |
|
Trans- |
|
Sales |
| Geographic Area |
|
Sales |
|
lation |
|
Change |
| Europe, Middle East and Africa |
|
0.9 |
% |
|
(0.2 |
)% |
|
0.7 |
% |
| |
| Asia Pacific |
|
10.6 |
|
|
0.5 |
|
|
11.1 |
|
| |
| Latin America and Canada |
|
1.3 |
|
|
7.4 |
|
|
8.7 |
|
| |
| |
| Worldwide |
|
Local- |
|
|
|
Total |
| Sales Change Analysis |
|
currency |
|
Trans- |
|
Sales |
| By Business Segment |
|
Sales |
|
lation |
|
Change |
| Health Care |
|
2.9 |
% |
|
0.5 |
% |
|
3.4 |
% |
| |
| Industrial (l) |
|
9.3 |
|
|
1.2 |
|
|
10.5 |
|
| |
| Display and Graphics |
|
4.0 |
|
|
0.2 |
|
|
4.2 |
|
| |
| Consumer and Office |
|
3.4 |
|
|
1.0 |
|
|
4.4 |
|
| |
| Electro and Communications |
|
4.2 |
|
|
0.7 |
|
|
4.9 |
|
| |
| Safety, Security and Protection |
|
|
|
|
|
|
| Services |
|
6.9 |
|
|
1.0 |
|
|
7.9 |
|
| |
| Transportation |
|
5.0 |
|
|
0.8 |
|
|
5.8 |
|
|
|
|
|
|
|
|
|
(l) Industrial includes a 5.1% benefit due to the CUNO acquisition.
|
| |
|
3M Company and Subsidiaries
|
| BUSINESS SEGMENTS |
| (Dollars in millions) |
| (Unaudited) |
| |
| BUSINESS |
|
|
|
|
|
|
|
|
| SEGMENT |
|
Three-months ended |
|
Twelve-months ended |
| INFORMATION |
|
Dec. 31 |
|
Dec. 31 |
| (Millions) |
|
2005 |
|
2004 |
|
2005 |
|
2004 |
| NET SALES |
|
|
|
|
|
|
|
|
| Health Care |
|
$1,074 |
|
|
$1,115 |
|
|
$4,373 |
|
|
$4,230 |
|
| Industrial |
|
1,004 |
|
|
869 |
|
|
3,806 |
|
|
3,444 |
|
| Display and Graphics |
|
912 |
|
|
844 |
|
|
3,558 |
|
|
3,416 |
|
| Consumer and Office |
|
754 |
|
|
763 |
|
|
2,986 |
|
|
2,861 |
|
| Electro and Communications |
|
585 |
|
|
544 |
|
|
2,333 |
|
|
2,224 |
|
| Safety, Security and Protection |
|
|
|
|
|
|
|
|
| Services |
|
563 |
|
|
526 |
|
|
2,292 |
|
|
2,125 |
|
| Transportation |
|
420 |
|
|
421 |
|
|
1,772 |
|
|
1,674 |
|
| Corporate and Unallocated |
|
13 |
|
|
9 |
|
|
47 |
|
|
37 |
|
| Total Company |
|
$5,325 |
|
|
$5,091 |
|
|
$21,167 |
|
|
$20,011 |
|
| |
| OPERATING INCOME |
|
|
|
|
|
|
|
|
| Health Care |
|
$304 |
|
|
$310 |
|
|
$1,215 |
|
|
$1,123 |
|
| Industrial |
|
188 |
|
|
141 |
|
|
735 |
|
|
610 |
|
| Display and Graphics |
|
281 |
|
|
240 |
|
|
1,159 |
|
|
1,133 |
|
| Consumer and Office |
|
143 |
|
|
147 |
|
|
576 |
|
|
542 |
|
| Electro and Communications |
|
115 |
|
|
84 |
|
|
463 |
|
|
342 |
|
| Safety, Security and Protection |
|
|
|
|
|
|
|
|
| Services |
|
130 |
|
|
107 |
|
|
553 |
|
|
491 |
|
| Transportation |
|
100 |
|
|
98 |
|
|
461 |
|
|
426 |
|
| Corporate and Unallocated |
|
(49 |
) |
|
(35 |
) |
|
(153 |
) |
|
(89 |
) |
| Total Company |
|
$1,212 |
|
|
$1,092 |
|
|
$5,009 |
|
|
$4,578 |
|
Contact:
3M, St. Paul
Investor Contacts:
Mark Colin, 651-733-8206
or
Bruce Jermeland, 651-733-1807
or
Media Contact:
Jacqueline Berry, 651-733-3611