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3M Reports Sales, Earnings

October 28, 2010

3M's third quarter worldwide sales were $6.9 billion.

3M has closed its third quarter with an increase in sales and per-share earnings. Sales and per-share earnings increase 11% and 13.3% year-on-year, respectively. Operating income margins exceeded 20% in all six of the company’s business segments for the third consecutive quarter.

Third quarter worldwide sales were $6.9 billion, an increase of 11% compared to the same period last year. Local-currency sales including acquisitions increased 11.1%, while divestitures reduced sales by 0.1%. Foreign exchange rates had no impact on third quarter sales.

“The 3M team posted yet another outstanding quarter, with 11% organic volume growth and 23% margins,” said George Buckley, 3M chairman, president and CEO. “We drove growth throughout the portfolio, with more than 80% of our operating divisions posting year-on-year sales increases. New products are fueling market share gains and filling adjacent spaces everywhere, but particularly in emerging markets, the fastest-growing area of our company.”

In 3M’s Health Care business, sales of $1.1 billion were up 1.6% in local currency. Year-on-year H1N1-related comps reduced sales growth by 2%. Local-currency sales in Latin America/Canada were up 11% and Asia Pacific was up 9%. Local-currency sales were down slightly in the U.S. and Western Europe. Skin and wound care, health information systems, drug delivery and oral care had positive local-currency sales growth. Operating income was $326 million and operating margins were 29.8%.

In the Industrial and Transportation section, sales rose 14.2% year-on-year in local currency. Local-currency sales growth was led by renewable energy, energy and advanced materials, abrasives and auto.

3M reported continued rapid sales growth in Asia Pacific with 25% local-currency growth and double-digit local currency sales growth in Europe and in Latin America/Canada. The company reported operating income improved 14% to $446 million. Operating margins were 20.2%.

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