UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported): January 18, 2005
 
3M COMPANY
(Exact Name of Registrant as Specified in Its Charter)
 
Delaware
(State or Other Jurisdiction of Incorporation)

File No. 1-3285	 	41-0417775	
(Commission File Number)	 	(IRS Employer Identification No.)	
 	 	 	
3M Center, St. Paul, Minnesota	 	55144-1000	
(Address of Principal Executive Offices)	 	(Zip Code)	
 
(651) 733-1110
(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
 
o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
Item 2.02.  Results of Operations and Financial Condition
 
On January 18, 2005, 3M Company issued a press release reporting its sales and earnings results for the fourth quarter ended December 31, 2004 and full-year 2004 (furnished hereunder as Exhibit 99).
 
The information contained in this Current Report shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 	3M COMPANY	
 	 	
 	By:	/s/ Gregg M. Larson	 	
 	 	Gregg M. Larson,	
 	 	Secretary	
 
 Dated: January 18, 2005
 
2

 
EXHIBIT INDEX

Exhibit Number	 	Description	
 	 	 	
99	 	Press Release, dated as of January 18, 2005, of 3M Company (furnished pursuant to Item 2.02 hereof).	
 
3

Exhibit 99
 
 FOR IMMEDIATE RELEASE

3M Reports Fourth-Quarter and Calendar Year Sales and Earnings
— 2004 Revenue Exceeds $20 Billion, Full-Year EPS up over 21 percent —
 
ST. PAUL, Minn. – Jan 18, 2005 – 3M (NYSE: MMM) today announced its sales and profit results for the fourth-quarter and full-year 2004.
 
Net income for the quarter was $720 million, or $0.91 per share, versus $619 million, or $0.77 per share, in the fourth quarter of 2003.  Fourth quarter net income and earnings per-share increased 16.3 percent and 18.2 percent, respectively.  This result is at the high end of previous earnings guidance of $0.90 to $0.91 per share.
 
“The broad-based strength of the 3M business and geographic portfolio drove our excellent performance this quarter,” said W. James McNerney, Jr., 3M chairman and CEO.  “This strong finish positions us well for continued growth and operational success in 2005.”
 
The fourth-quarter results do not include any effect from the foreign dividend reinvestment provision of the American Jobs Creation Act of 2004(a) or proposed accounting rule changes related to contingently convertible debt instruments(b), since neither of the relevant rules had been finalized.
 
Fourth-quarter worldwide sales totaled $5.1 billion, up 7.9 percent compared to the fourth quarter of 2003.  Global sales volumes increased 4.8 percent in the fourth quarter and selling prices declined 0.9 percent.  Local-currency sales (which excludes the impact of currency translation) increased 8.3 percent in Consumer and Office; 7.9 percent in Safety, Security, and Protection Services; 7.0 percent in Industrial; 5.0 percent in Health Care; 4.8 percent in Transportation; and declined 0.8 percent in Display and Graphics and 7.3 percent in Electro and Communications.  Currency effects increased sales by 4.0 percent.
 
Sales outside the United States totaled $3.1 billion in the fourth quarter, an increase of 9.5 percent versus last year’s comparable quarter.  Volumes increased 4.1 percent, while selling prices declined 1.2 percent.  Currency translation effects increased international sales by 6.6 percent.  Local-currency sales increased 3.9 percent in the combined Latin America, Africa, and Canada region, 3.7 percent in Asia Pacific, and 1.3 percent in Europe.
 
In the United States, sales totaled $2.0 billion, up 5.4 percent from the fourth quarter of 2003.  Volumes increased 5.7 percent in the fourth quarter and selling prices declined 0.3 percent.
 
For the calendar year, 3M net income totaled $3.0 billion and earnings per share increased 21.4 percent to $3.75 per share, up from $2.5 billion and $3.09 per share in 2003 excluding special items(c).
 
2004 calendar year sales totaled $20.0 billion, a 9.8 percent increase over 2003.  Sales volumes increased 6.7 percent for the year, and selling prices declined 0.7 percent.  For the calendar year, local-currency sales growth was driven by increases of 10.4 percent in Display and Graphics; 9.1 percent in Industrial; 6.9 percent in Consumer and Office; and 6.6 percent in Safety, Security and Protection Services.

 
“Our outstanding results in recent years demonstrate the enduring strength of the 3M business model, a model that has been improved and significantly strengthened,” McNerney said. “As a result, we are confident that by leveraging our multiple technology platforms, leadership positions in diverse markets, and well-integrated corporate initiatives, we will drive sustainable sales and profit growth in 2005 and beyond.”
 
3M also provided its full-year 2005 earnings estimates. The company expects 2005 earnings to be in the range of  $4.15 to $4.25 per share.  Full-year volume growth is expected to be between 5 and 8 percent.  Included in this 2005 expectation is an approximately $0.02 earnings per share decrease resulting from an anticipated change in accounting rules related to contingently convertible debt instruments.  This expectation does not include any impact from accounting rule changes related to the expensing of management stock options, which 3M expects to implement July 1, 2005.  The expectation also does not include a potential one-time increase in the tax provision related to possible repatriation of foreign earnings under the American Jobs Creation Act of 2004.
 
For the first quarter of 2005, the company expects earnings per share to be in the range of $1.00 to $1.02 and volume growth of between 5 and 7 percent.
 
Patrick D. Campbell, senior vice president and chief financial officer, will conduct an investor teleconference at 9 a.m. Eastern Time (8 a.m. Central Time) today. Investors can access a webcast of this conference, along with related charts and materials, at http://investor.3M.com.
 
NOTES:
 
(a)           Due to continued uncertainty regarding interpretation of key provisions of the American Jobs Creation Act of 2004, the company was not in a position to make a final decision to repatriate foreign earnings under the Act. Thus the company did not record a previously anticipated one-time increase in the tax provision for these earnings in the fourth quarter of 2004.
 
(b)          The company expects a change in accounting rules related to contingently convertible debt instruments to affect results beginning in 2005.
 
(c)           During the first quarter of 2003, 3M recorded pretax charges of $93 million ($58 million after-tax) related to an adverse court ruling in a lawsuit filed against 3M in 1997 by LePage’s Inc.
 
Forward-Looking Statements
 
This news release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) about the Company’s financial results and estimates, business prospects, and products under development 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,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic conditions; (2) foreign currency exchange rates and fluctuations in those rates; (3) the timing and acceptance of new product offerings; (4) the availability and cost of purchased components and materials, including oil-derived compounds; (5) 3M’s ability to successfully integrate and obtain the anticipated synergies from acquisitions and strategic alliances; (6) receiving less savings from its corporate initiatives than estimated;  and (7) legal proceedings, including the outcome of and information derived from pending Congressional action concerning asbestos-related litigation and

 
other significant developments that could occur in the legal proceedings described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, and its subsequent periodic reports on Forms 10-Q (the “Reports”). Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Reports. The information contained in this news release is as of the date indicated. The Company assumes no obligation to update any forward-looking statements contained in this release as a result of new information or future events or developments.

About 3M — A Global, Diversified Technology Company
 
Every day, 3M people find new ways to make amazing things happen. Wherever they are, whatever they do, the company’s customers know they can rely on 3M to help make their lives better. 3M’s brands include Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti. Serving customers in more than 200 countries around the world, the company’s 67,000 people use their expertise, technologies and global strength to lead in major markets including consumer and office; display and graphics; electronics and telecommunications; safety, security and protection services; health care; industrial and transportation.
 
Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti are trademarks of 3M.

 
3M Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per-share amounts)
(Unaudited)

 	 	Three-months ended
December 31	 	Twelve-months ended
December 31	 	
 	 	2004	 	2003	 	2004	 	2003	 	
Net sales	 	$	5,091	 	$	4,718	 	$	20,011	 	$	18,232	 	
Operating expenses	 	 	 	 	 	 	 	 	 	
Cost of sales	 	2,613	 	2,429	 	9,958	 	9,285	 	
Selling, general and administrative expenses	 	1,097	 	1,061	 	4,332	 	4,039	 	
Research, development and related expenses	 	289	 	286	 	1,143	 	1,102	 	
Other expense	 	—	 	—	 	—	 	93	 	
Total	 	3,999	 	3,776	 	15,433	 	14,519	 	
Operating income	 	1,092	 	942	 	4,578	 	3,713	 	
Interest expense and income	 	 	 	 	 	 	 	 	 	
Interest expense	 	17	 	15	 	69	 	84	 	
Interest income	 	(14	)	(11	)	(46	)	(28	)	
Total	 	3	 	4	 	23	 	56	 	
Income before income taxes and minority interest	 	1,089	 	938	 	4,555	 	3,657	 	
Provision for income taxes	 	359	 	305	 	1,503	 	1,202	 	
Minority interest	 	10	 	14	 	62	 	52	 	
Net income	 	$	720	 	$	619	 	$	2,990	 	$	2,403	 	
Weighted average common shares outstanding – basic	 	776.2	 	784.6	 	780.5	 	782.8	 	
Earnings per share – basic	 	$	0.93	 	$	0.79	 	$	3.83	 	$	3.07	 	
Weighted average common shares outstanding – diluted	 	790.4	 	800.9	 	796.5	 	795.3	 	
Earnings per share – diluted	 	$	0.91	 	$	0.77	 	$	3.75	 	$	3.02	 	
Cash dividends paid per common share	 	$	0.36	 	$	0.33	 	$	1.44	 	$	1.32	 	

 
3M Company and Subsidiaries
SUPPLEMENTAL CONSOLIDATED STATEMENT OF INCOME INFORMATION
(Millions, except per-share amounts)
(Unaudited)

 	 	Twelve-months ended
December 31, 2004	 	Twelve-months ended
December 31, 2003	 	
 	 	Excluding
special
items	 	Special
items	 	Reported
total	 	Excluding
special
items (a)	 	Special
items (a)	 	Reported
total	 	
Net sales	 	$	20,011	 	$	—	 	$	20,011	 	$	18,232	 	$	—	 	$	18,232	 	
Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of sales	 	9,958	 	—	 	9,958	 	9,285	 	—	 	9,285	 	
Selling, general and administrative expenses	 	4,332	 	—	 	4,332	 	4,039	 	—	 	4,039	 	
Research, development and related expenses	 	1,143	 	—	 	1,143	 	1,102	 	—	 	1,102	 	
Other expense	 	—	 	—	 	—	 	—	 	93	 	93	 	
Total	 	15,433	 	—	 	15,433	 	14,426	 	93	 	14,519	 	
Operating income (loss)	 	4,578	 	—	 	4,578	 	3,806	 	(93	)	3,713	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense and (income), net	 	23	 	—	 	23	 	56	 	—	 	56	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income taxes and minority interest	 	4,555	 	—	 	4,555	 	3,750	 	(93	)	3,657	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision (benefit) for income taxes	 	1,503	 	—	 	1,503	 	1,237	 	(35	)	1,202	 	
Effective tax rate	 	33.0	%	—	 	33.0	%	33.0	%	—	 	32.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minority interest	 	62	 	—	 	62	 	52	 	—	 	52	 	
Net income (loss)	 	$	2,990	 	$	—	 	$	2,990	 	$	2,461	 	$	(58	)	$	2,403	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average diluted shares	 	796.5	 	—	 	796.5	 	795.3	 	795.3	 	795.3	 	
Net income per diluted share	 	$	3.75	 	$	—	 	$	3.75	 	$	3.09	 	$	(0.07	)	$	3.02	 	

(a) In addition to disclosing results that are determined in accordance with U.S. generally accepted accounting principles (GAAP), the company also discloses non-GAAP results that exclude special items. Special items represent significant charges or credits that are important to an understanding of the company’s ongoing operations. The company provides reconciliations of its non-GAAP financial reporting to the most comparable GAAP reporting. The company believes that discussion of results excluding special items provides a useful analysis of ongoing operating trends. Earnings per share and other amounts before special items are not measures recognized under GAAP. The determination of special items may not be comparable to similarly titled measures used by other companies. During the first quarter of 2003, 3M recorded pretax charges of $93 million ($58 million after-tax) related to an adverse court ruling in a lawsuit filed against 3M in 1997 by LePage’s Inc.

 
3M Company and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(Unaudited)

 	 	At December 31	 	
 	 	2004	 	2003	 	
ASSETS	 	 	 	 	 	
Current assets	 	 	 	 	 	
Cash and cash equivalents	 	$	2,757	 	$	1,836	 	
Accounts receivable – net	 	2,792	 	2,714	 	
Inventories	 	1,897	 	1,816	 	
Other current assets	 	1,274	 	1,354	 	
 	 	 	 	 	 	
Total current assets	 	8,720	 	7,720	 	
Investments	 	227	 	218	 	
Property, plant and equipment – net	 	5,711	 	5,609	 	
Goodwill, intangible assets and other assets (a)	 	6,050	 	4,053	 	
 	 	 	 	 	 	
Total assets	 	$	20,708	 	$	17,600	 	
 	 	 	 	 	 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	
Current liabilities	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	2,094	 	$	1,202	 	
Accounts payable	 	1,168	 	1,087	 	
Accrued payroll	 	487	 	436	 	
Accrued income taxes	 	867	 	880	 	
Other current liabilities	 	1,455	 	1,477	 	
 	 	 	 	 	 	
Total current liabilities	 	6,071	 	5,082	 	
Long-term debt	 	727	 	1,735	 	
Other liabilities (a)	 	3,532	 	2,898	 	
 	 	 	 	 	 	
Total liabilities	 	10,330	 	9,715	 	
 	 	 	 	 	 	
Total stockholders’ equity – net (a)	 	10,378	 	7,885	 	
Shares outstanding	 	 	 	 	 	
December 31, 2004: 773,518,281 shares	 	 	 	 	 	
December 31, 2003: 784,117,360 shares	 	 	 	 	 	
 	 	 	 	 	 	
Total liabilities and stockholders’ equity	 	$	20,708	 	$	17,600	 	

(a) Accounting rules require that, if the Accumulated Benefit Obligation (ABO) exceeds the fair value of pension plan assets, the employer must recognize a liability that is at least equal to the unfunded ABO.  In December 2002, 3M recorded a substantial minimum pension liability adjustment.  As a result of pension contributions, strong asset performance and other factors, 3M’s U.S. qualified pension plan assets exceeded the ABO at year-end 2004.  This change in U.S qualified pension plan assets was the primary component which resulted in an adjustment to other comprehensive income that increased stockholders’ equity by $1.193 billion, increased other assets by $1.773 billion, decreased other liabilities by $151 million, and increased the long-term deferred tax liability (which is part of Other liabilities) by  $731 million.

 
3M Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in millions)
(Unaudited)

 	 	Twelve-months ended
December 31	 	
 	 	2004	 	2003	 	
SUMMARY OF CASH FLOW:	 	 	 	 	 	
 	 	 	 	 	 	
NET CASH PROVIDED BY OPERATING ACTIVITIES	 	$	4,282	 	$	3,773	 	
Cash flows from investing activities:	 	 	 	 	 	
Purchases of property, plant and equipment	 	(937	)	(677	)	
Acquisitions, net of cash acquired	 	(73	)	(439	)	
Other investing activities	 	72	 	147	 	
NET CASH USED IN INVESTING ACTIVITIES	 	(938	)	(969	)	
Cash flows from financing activities:	 	 	 	 	 	
Change in debt	 	(111	)	(440	)	
Purchases of treasury stock	 	(1,791	)	(685	)	
Reissuances of treasury stock	 	508	 	555	 	
Dividends paid to stockholders	 	(1,125	)	(1,034	)	
Other financing activities	 	(15	)	(23	)	
NET CASH USED IN FINANCING ACTIVITIES	 	(2,534	)	(1,627	)	
Effect of exchange rate changes on cash	 	111	 	41	 	
Net increase in cash and cash equivalents	 	921	 	1,218	 	
Cash and cash equivalents at beginning of period	 	1,836	 	618	 	
Cash and cash equivalents at end of period	 	$	2,757	 	$	1,836	 	

 
3M Company and Subsidiaries
SUPPLEMENTAL CASH FLOW AND
OTHER SUPPLEMENTAL FINANCIAL INFORMATION
(Dollars in millions)
(Unaudited)

 	 	Twelve-months ended
December 31	 	
 	 	2004	 	2003	 	
FREE CASH FLOW (Non-GAAP measure):	 	 	 	 	 	
Net cash provided by operating activities	 	$	4,282	 	$	3,773	 	
Purchases of property, plant and equipment	 	(937	)	(677	)	
Free Cash Flow (a)	 	$	3,345	 	$	3,096	 	
 	 	 	 	 	 	
OTHER NON-GAAP MEASURES:	 	 	 	 	 	
Net Working Capital Turns (b)	 	5.8	 	5.5	 	
 	 	 	 	 	 	
Reported:	 	 	 	 	 	
Economic Profit (c)	 	$	1,758	 	$	1,322	 	
Return on Invested Capital (c)	 	23.4	%	21.3	%	
 	 	 	 	 	 	
Excluding Special Items in 2003:	 	 	 	 	 	
Economic Profit (c)	 	$	1,758	 	$	1,380	 	
Return on Invested Capital (c)	 	23.4	%	21.8	%	

(a) Free cash flow is not defined under GAAP.  Therefore, it is considered a non-GAAP measure.  Non-GAAP measures should not be considered a substitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies.  The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment.  It should not be inferred that the entire free cash flow amount is available for discretionary expenditures.  The company believes free cash flow is a useful measure of performance and uses this measure as an indication of the strength of the company and its ability to generate cash.
 
(b) The company uses non-GAAP measures that place emphasis and focus on certain working capital assets and liabilities.  3M’s net working capital index is defined as quarterly net sales multiplied by four, divided by ending net accounts receivable plus inventory less accounts payable.  This measure is not recognized under U.S. generally accepted accounting principles and may not be comparable to similarly titled measures used by other companies.
 
(c) The company uses non-GAAP measures to focus on shareholder value creation.  3M’s Economic Profit is defined as after-tax operating income less a charge for operating capital.  3M also uses Return on Invested Capital, defined as after-tax operating income divided by average operating capital.  This measure is presented as reported and also excluding 2003 special items.  Special items were previously defined within the Supplemental Consolidated Statement of Income Information section of this document.  These measures are not recognized under U.S. generally accepted accounting principles and may not be comparable to similarly titled measures used by other companies.

 
3M Company and Subsidiaries
SALES CHANGE ANALYSIS
(Unaudited)
 
Three-Months Ended December 31, 2004

Sales Change Analysis
By Geographic Area	 	United
States	 	International	 	Worldwide	 	
Volume – core	 	4.8	%	3.8	%	4.2	%	
 	 	 	 	 	 	 	 	
Volume – acquisitions	 	0.9	 	0.3	 	0.6	 	
Volume – total	 	5.7	 	4.1	 	4.8	 	
 	 	 	 	 	 	 	 	
Price	 	(0.3	)	(1.2	)	(0.9	)	
Total local-currency sales	 	5.4	 	2.9	 	3.9	 	
 	 	 	 	 	 	 	 	
Translation	 	—	 	6.6	 	4.0	 	
Total sales change	 	5.4	%	9.5	%	7.9	%	

Worldwide Sales Change Analysis
By Business Segment	 	Local-
currency
Sales	 	Translation	 	Total
Sales
Change	 	
Health Care	 	5.0	%	4.3	%	9.3	%	
 	 	 	 	 	 	 	 	
Industrial	 	7.0	 	4.1	 	11.1	 	
 	 	 	 	 	 	 	 	
Display and Graphics	 	(0.8	)	4.7	 	3.9	 	
 	 	 	 	 	 	 	 	
Consumer and Office	 	8.3	 	3.1	 	11.4	 	
 	 	 	 	 	 	 	 	
Safety, Security and Protection Services	 	7.9	 	4.0	 	11.9	 	
 	 	 	 	 	 	 	 	
Electro and Communications	 	(7.3	)	3.2	 	(4.1	)	
 	 	 	 	 	 	 	 	
Transportation	 	4.8	 	4.1	 	8.9	 	

 
Twelve-Months Ended December 31, 2004

Sales Change Analysis
By Geographic Area	 	United
States	 	International	 	Worldwide	 	
Volume – core	 	3.2	%	8.2	%	6.2	%	
 	 	 	 	 	 	 	 	
Volume – acquisitions	 	0.8	 	0.3	 	0.5	 	
Volume – total	 	4.0	 	8.5	 	6.7	 	
 	 	 	 	 	 	 	 	
Price	 	(0.1	)	(1.1	)	(0.7	)	
Total local-currency sales	 	3.9	 	7.4	 	6.0	 	
 	 	 	 	 	 	 	 	
Translation	 	—	 	6.5	 	3.8	 	
Total sales change	 	3.9	%	13.9	%	9.8	%	

Sales Change Analysis
By International
Geographic Area	 	Local-
currency
Sales	 	Translation	 	Total
Sales
Change	 	
Europe	 	0.8	%	8.9	%	9.7	%	
 	 	 	 	 	 	 	 	
Asia Pacific	 	13.6	 	5.6	 	19.2	 	
 	 	 	 	 	 	 	 	
Latin America, Africa and Canada	 	9.3	 	2.4	 	11.7	 	

Worldwide Sales Change Analysis
By Business Segment	 	Local-
currency
Sales	 	Translation	 	Total
Sales
Change	 	
Health Care	 	1.7	%	4.2	%	5.9	%	
 	 	 	 	 	 	 	 	
Industrial	 	9.1	 	4.0	 	13.1	 	
 	 	 	 	 	 	 	 	
Display and Graphics	 	10.4	 	4.6	 	15.0	 	
 	 	 	 	 	 	 	 	
Consumer and Office	 	6.9	 	2.8	 	9.7	 	
 	 	 	 	 	 	 	 	
Safety, Security and Protection Services	 	6.6	 	3.6	 	10.2	 	
 	 	 	 	 	 	 	 	
Electro and Communications	 	0.3	 	2.9	 	3.2	 	
 	 	 	 	 	 	 	 	
Transportation	 	5.2	 	4.2	 	9.4	 	

 
3M Company and Subsidiaries
BUSINESS SEGMENTS
(Dollars in millions)
(Unaudited)

BUSINESS	 	 	 	 	 	 	 	 	 	
SEGMENT	 	Three-months ended	 	Twelve-months ended	 	
INFORMATION	 	December 31	 	December 31	 	
(Millions)	 	2004	 	2003	 	2004	 	2003	 	
 	 	 	 	 	 	 	 	 	 	
NET SALES	 	 	 	 	 	 	 	 	 	
Health Care	 	$	1,115	 	$	1,020	 	$	4,230	 	3,995	 	
Industrial	 	960	 	865	 	3,792	 	3,354	 	
Display and Graphics	 	842	 	810	 	3,406	 	2,962	 	
Consumer and Office	 	763	 	685	 	2,861	 	2,607	 	
Safety, Security and Protection Services	 	526	 	470	 	2,125	 	1,928	 	
Electro and Communications	 	452	 	472	 	1,876	 	1,818	 	
Transportation	 	423	 	388	 	1,683	 	1,538	 	
Corporate and Unallocated	 	10	 	8	 	38	 	30	 	
 	 	 	 	 	 	 	 	 	 	
Total Company	 	$	5,091	 	$	4,718	 	$	20,011	 	$	18,232	 	
 	 	 	 	 	 	 	 	 	 	
OPERATING INCOME	 	 	 	 	 	 	 	 	 	
Health Care	 	$	310	 	$	254	 	$	1,123	 	$	1,027	 	
Industrial	 	158	 	109	 	661	 	458	 	
Display and Graphics	 	240	 	243	 	1,131	 	885	 	
Consumer and Office	 	147	 	114	 	542	 	460	 	
Safety, Security and Protection Services	 	107	 	90	 	491	 	437	 	
Electro and Communications	 	68	 	71	 	291	 	255	 	
Transportation	 	98	 	88	 	428	 	389	 	
Corporate and Unallocated (a)	 	(36	)	(27	)	(89	)	(198	)	
 	 	 	 	 	 	 	 	 	 	
Total Company	 	$	1,092	 	$	942	 	$	4,578	 	$	3,713	 	

(a) The following charges were recorded in Corporate and Unallocated.  Fourth quarter 2004 includes an increase of $40 million in the respirator mask/asbestos litigation reserve partially offset by a $20 million increase in the associated insurance receivable resulting in a net cost (“Net Cost”) of $20 million, compared to a Net Cost of $16 million in the fourth quarter of 2003.   First quarter 2004 includes $16 million in expense related to a reduction in breast implant receivables, primarily related to an arbitration ruling in the first quarter that rejected the Company’s claims for recovery under certain of its claims-made policies. Third quarter 2003 includes Net Cost related to respirator mask/asbestos and implant reserves.  During the first quarter of 2003, 3M recorded pretax charges of $93 million related to an adverse court ruling in a lawsuit filed against 3M in 1997 by LePage’s Inc.  First quarter 2003 also includes certain acquisition-related costs and Net Cost related to respirator mask/asbestos reserves.

 

Investor Contacts:	Mark Colin	 	Media Contact:	John Cornwell	
 	3M	 	 	3M	
 	(651) 733-8206	 	 	(651) 733-7698	
 	 	 	 	 	
 	Bruce Jermeland	 	 	 	
 	3M	 	 	 	
 	(651) 733-1807	 	 	 	

From:
3M Public Relations and Corporate Communications
3M Center, Building 225-1S-15
St. Paul, MN 55144-1000