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10-QPeriod: Q3 FY2013

3M CO Quarterly Report for Q3 Ended Sep 30, 2013

Filed October 31, 2013For Securities:MMM

Summary

3M Company reported a solid third quarter of 2013, with net sales increasing by 5.6% to $7.9 billion compared to the prior year. This growth was driven by broad-based organic local-currency sales increases across all five business segments, with particular strength in Latin America/Canada and Asia Pacific. Net income attributable to 3M also saw a healthy increase, reaching $1.23 billion, or $1.78 per diluted share. The company demonstrated continued financial discipline, generating $3.82 billion in operating cash flow for the first nine months of the year. 3M continued its commitment to shareholder returns through robust share repurchases, totaling $3.54 billion in the first nine months, and a 7.6% increase in its quarterly dividend. The company's financial condition remains strong, supported by an AA- credit rating, a well-managed debt-to-capital ratio of 24%, and significant liquidity from cash, cash equivalents, and marketable securities.

Financial Statements
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Key Highlights

  • 1Net sales for Q3 2013 increased 5.6% to $7.9 billion year-over-year.
  • 2Organic local-currency sales grew 5.8% company-wide, with all five business segments contributing.
  • 3Net income attributable to 3M was $1.23 billion, or $1.78 per diluted share, up from $1.16 billion in Q3 2012.
  • 4Operating cash flow for the first nine months of 2013 was $3.82 billion.
  • 5The company repurchased $3.54 billion of its stock in the first nine months of 2013, a significant increase from the prior year.
  • 6The quarterly dividend was increased by 7.6% to $0.635 per share.
  • 73M maintained a strong financial position with a debt-to-capital ratio of 24% and an AA- credit rating.

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