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TMCNet:  3M Announces Record First-Quarter Sales of $7.8 Billion; Earnings Increase 11 Percent to $1.79 per Share

[April 28, 2014]

3M Announces Record First-Quarter Sales of $7.8 Billion; Earnings Increase 11 Percent to $1.79 per Share

(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 28 April 2014 Release date- 25042014 - 3M Announces Record First-Quarter Sales of $7.8 Billion; Earnings Increase 11 Percent to $1.79 per Share.

First-Quarter Highlights: Organic local-currency sales growth of 4.6 percent Operating income margins of 21.9 percent, up 0.3 percentage points year-on-year Earnings of $1.79 per share, up 11.2 percent Returned $2.3 billion to shareholders via dividends and gross share repurchases Increased first-quarter per-share dividend by 35 percent ST. PAUL, Minn - 3M (NYSE: MMM) today reported first-quarter earnings of $1.79 per share, an increase of 11.2 percent versus the first quarter of 2013.

Sales grew 2.6 percent year-on-year to $7.8 billion. Organic local-currency sales grew 4.6 percent while currency impacts reduced sales by 2.0 percent year-on-year.

First-quarter operating income was $1.7 billion, operating income margins were 21.9 percent and net income was $1.2 billion. The company converted 66 percent of net income to free cash flow in the first quarter, which was in line with traditional seasonal patterns.

3M paid $566 million in cash dividends to shareholders and repurchased $1.7 billion of its own shares during the quarter.

Organic local-currency sales growth was 6.2 percent in Health Care, 4.9 percent in Industrial, 4.6 percent in Safety and Graphics, 4.1 percent in Electronics and Energy and 2.6 percent in Consumer. On a geographic basis, organic local-currency sales grew 6.9 percent in Asia Pacific, 6.8 percent in Latin America/Canada, 3.7 percent in EMEA (Europe, Middle East and Africa) and 2.6 percent in the U.S.

'This was a solid quarter for 3M,' said Inge G. Thulin, 3M's chairman, president and chief executive officer. 'Our teams delivered positive organic growth in all business groups and geographic areas, we posted strong margins across the portfolio and we returned a record amount of cash to shareholders. At the same time we increased investments in R&D and commercialization to help secure future growth in the business. 3M is well-positioned to generate sustainable, profitable growth far into the future.' 3M maintained its full-year earnings expectation of $7.30 to $7.55 per share with organic local-currency sales growth of 3 to 6 percent. Foreign currency is expected to reduce sales by approximately 1 percent for the year versus a previous expectation of neutral to minus 1 percent.

First-Quarter Business Group Discussion Industrial Sales of $2.8 billion, up 3.1 percent in U.S. dollars. Organic local-currency sales increased 4.9 percent and foreign currency translation reduced sales by 1.8 percent.

On an organic local-currency basis: Sales growth was led by 3M Purification, automotive OEM, advanced materials, abrasive systems, and aerospace and commercial transportation; sales declined in personal care.

Sales grew in all areas, with the largest increases in EMEA, Latin America/Canada and Asia Pacific.

Operating income was $618 million, up 6.7 percent year-on-year; operating margin of 22.3 percent.

Safety and Graphics Sales of $1.4 billion, up 1.7 percent in U.S. dollars. Organic local-currency sales increased 4.6 percent and foreign currency translation reduced sales by 2.9 percent.

On an organic local-currency basis: Sales grew in personal safety, roofing granules and commercial solutions, while the traffic safety and security business declined year-on-year.

Sales rose in all areas, led by Asia Pacific, EMEA and Latin America/Canada.

Operating income was $318 million, a decrease of 4.2 percent year-on-year; operating margin of 22.3 percent.

Health Care Sales of $1.4 billion, up 4.8 percent in U.S. dollars. Organic local-currency sales increased 6.2 percent and foreign currency translation reduced sales by 1.4 percent.

On an organic local-currency basis: Sales increased across the portfolio, with the strongest growth in drug delivery, health information systems, food safety, critical and chronic care, and infection prevention.

Sales grew in all areas, with the strongest growth in Latin America/Canada, Asia Pacific and the U.S.

Operating income was $427 million, an increase of 5.6 percent; operating margin of 31.1 percent.

Electronics and Energy Sales of $1.3 billion, an increase of 2.7 percent in U.S. dollars. Organic local-currency sales increased 4.1 percent and foreign currency translation reduced sales by 1.4 percent.

On an organic local-currency basis: Electronics-related sales increased 5 percent, with strong growth in optical systems partially offset by declines in the electronic markets materials and the electronic solutions businesses; energy-related sales grew 2 percent year-on-year, led by renewable energy and telecom.

Sales grew in Latin America/Canada and Asia Pacific while the U.S. and EMEA declined year-on-year.

Operating income was $227 million, up 16.1 percent year-on-year; operating margin of 17.3 percent.

Consumer Sales of $1.1 billion, down 0.2 percent in U.S. dollars. Organic local-currency sales increased 2.6 percent, divestitures reduced sales by 0.3 percent and foreign currency translation reduced sales by 2.5 percent.

On an organic local-currency basis: Sales grew in DIY, consumer health care and home care while stationery and office supplies declined year-on-year.

Sales rose in all areas with the largest increases in Asia Pacific and Latin America/Canada.

Operating income was $228 million, down 3.5 percent year-on-year; operating margin of 21.2 percent.

3M will conduct an investor teleconference at 9:00 a.m. EDT (8:00 a.m. CDT) today. Investors can access this conference via the following: Live webcast at http://investor.3M.com.

Live telephone: Call 800-762-2596 within the U.S. or +1 212-231-2916 outside the U.S. Please join the call at least 10 minutes before the start time.

Webcast replay: Go to 3M's Investor Relations website at http://investor.3M.com and click on 'Quarterly Earnings.' Telephone replay: Call 800-633-8284 (for both U.S. and outside the U.S.; access code is 21682152).The telephone replay will be available until 10:00 a.m. CDT on April 29, 2014.

Forward-Looking Statements This news release contains forward-looking information about 3M's financial results and estimates and business prospects 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,' 'will,' 'target,' 'forecast' and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic and capital markets conditions and other factors beyond the Company's control, including natural and other disasters affecting the operations of the Company or its customers and suppliers; (2) the Company's credit ratings and its cost of capital; (3) competitive conditions and customer preferences; (4) foreign currency exchange rates and fluctuations in those rates; (5) the timing and market acceptance of new product offerings; (6) 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); (7) 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; (8) generating fewer productivity improvements than estimated; (9) unanticipated problems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information technology infrastructure; and (10) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Annual Report under 'Cautionary Note Concerning Factors That May Affect Future Results' and 'Risk Factors' in Part I, Items 1 and 1A. The information contained in this presentation is as of the date indicated. The Company assumes no obligation to update any forward-looking statements contained in this presentation as a result of new information or future events or developments.

3M Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME: See Full Press Release at: See more at: http://news.3m.com/press-release/company/3m-announces-record-first-quarter-sales-78-billion-earnings-increase-11-percen#sthash.xFa7ijVx.dpuf About 3M 3M captures the spark of new ideas and transforms them into thousands of ingenious products. Our culture of creative collaboration inspires a never-ending stream of powerful technologies that make life better. 3M is the innovation company that never stops inventing. With $31 billion in sales, 3M employs 89,000 people worldwide and has operations in more than 70 countries.

Contact: 3M Investor Contacts: Matt Ginter, 651-733-8206 or Bruce Jermeland, 651-733-1807 or Media Contact: Donna Fleming Runyon, 651-736-7646 (c) 2014 Electronic News Publishing -

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