EXHIBIT 99.1
Investor Contacts: Jon Greer Matt Ginter
651-736-1915 651-733-8206
[email protected] [email protected]
Media Contact: John Cornwell
651-733-7698
[email protected]
FOR IMMEDIATE RELEASE
3M to Report Higher Fourth-Quarter Sales and Earnings
St. Paul, Minn. - Jan. 16, 2001 -- 3M said today it achieved higher
fourth-quarter sales and earnings excluding non-recurring items, but significant
slowing of the U.S. economy and a strong U.S. dollar held back growth.
Net income for the quarter totaled $447 million, or $1.12 per share, up
from $444 million, or $1.10 per share, in the fourth quarter of 1999, but below
the company's previous expectation. Currency effects reduced earnings for the
quarter by 5 cents per share.
3M said it increased volume 8.5 percent from the fourth quarter of 1999.
Sales of $4.1 billion increased 2 percent, with good volume gains significantly
offset by negative currency translation of nearly 5 percent and slightly lower
selling prices. 3M continued to achieve double-digit volume gains in all major
international areas. U.S. volume was basically unchanged from the fourth quarter
of 1999, with demand particularly soft in the month of December.
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Operating income at 17.5 percent of sales was down one percentage point from the
fourth quarter of 1999 due to flat U.S. volume, the impact of the stronger U.S.
dollar and acquisition effects. These impacts at the net income level were
partially offset by a slightly lower tax rate of 33 percent.
For the year 2000, 3M achieved record results, with earnings per share -
excluding non-recurring items - growing 11 percent from 1999, and volume
increasing more than 10 percent from the prior year.
W. James McNerney, Jr., Chairman and Chief Executive Officer, said, "We're
committed to sustaining double-digit earnings growth in 2001, despite the
current weak and uncertain economic picture. We're quickly sizing our cost
structure to meet this target even if our sales in local currencies fall
significantly short of our original expectation of about 11 percent growth, and
currency rates continue at present negative levels."
The company expects mid-single-digit earnings per share growth in the first
quarter, as accelerated cost reduction efforts begin to take effect.
"We will aggressively manage our overall cost base, while funding our major
growth engines. This will position 3M well to capitalize on a resumption of more
normal economic growth," McNerney said.
"We remain confident in our ability to achieve solid, consistent profit
growth even as we deal with these difficult economic challenges," he said.
3M has moved up its conference to discuss results for the fourth quarter and
expectations for 2001 to 8:30 a.m. EST (7:30 a.m. Central) on Jan. 17. The
teleconference will be available via webcast at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=MMM&script=2400.
The company will issue financial statements for the fourth quarter and year
2000 next week.
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.
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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.
