3M CO Quarterly Report for Q1 Ended Mar 31, 2011

Summary

3M Company reported strong first-quarter 2011 results, showcasing a 15.2% increase in net sales to $7.311 billion compared to the prior year's $6.348 billion. This growth was driven by broad-based performance across all six business segments and geographic regions, with organic volume accounting for a significant portion of the increase. Net income attributable to 3M also saw a substantial rise to $1.081 billion ($1.49 per diluted share) from $930 million ($1.29 per diluted share) in the first quarter of 2010. Despite some headwinds, including impacts from the Japan earthquake and tsunami and increased pension and postretirement expenses, the company demonstrated resilience. Acquisitions also played a role in sales growth, contributing 3.2%. 3M maintained a strong financial position with robust operating cash flow and a stable debt-to-total capital ratio, allowing for continued investment in growth initiatives, share repurchases, and dividend increases. The company expects continued strong sales growth for the full year 2011.

Key Highlights

• 1Net sales increased by 15.2% to $7.311 billion in Q1 2011 compared to Q1 2010.
• 2Net income attributable to 3M increased to $1.081 billion ($1.49 per diluted share) from $930 million ($1.29 per diluted share) in the prior year.
• 3All six business segments reported strong sales growth, indicating broad-based performance.
• 4Acquisitions contributed 3.2% to sales growth, with notable additions like Winterthur Technologie AG and Alpha Beta Enterprise Co. Ltd.
• 5Operating cash flow was $733 million, though lower than the prior year's $1.082 billion, due to investments in working capital and acquisitions.
• 6The company repurchased $680 million of treasury stock in Q1 2011 under a new $7.0 billion authorization.
• 7The company raised its quarterly dividend by 4.8%, marking the 53rd consecutive year of dividend increases.

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