The company estimates that combined direct and indirect business disruption resulting from events in Japan reduced first-quarter sales growth by 70 basis points, operating margins by 40 basis points and earnings by $0.03 per share.
“We are off to a tremendous start in 2011 with first-quarter organic sales growth of 9%—or 10.5% adjusting for Japan and H1N1 impacts,” said George W. Buckley, 3M chairman, president and CEO. “New product flow is accelerating, boosted by higher investment in laboratory, sales and marketing and manufacturing capacity. Sales are growing faster as a result and our businesses are growing most everywhere in the world.”
“In addition, we were able to more than overcome the impact of the terrible earthquake in Japan and its tragic aftermath in the tsunami and nuclear power plant issues,” Mr. Buckley continued. “I would like to thank all our employees for their outstanding execution in the first quarter, with special heartfelt thanks to our courageous Japanese team for selflessly responding to this challenge. Our hearts go out to all of them and to their nation.”
Local-currency sales including acquisitions grew in all six of the company’s business segments.