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 26, 2012
 
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 26, 2012, 3M Company issued a press release reporting fourth-quarter and full-year 2011 results and affirming full-year 2012 performance expectations (attached hereunder as Exhibit 99 and incorporated herein by reference).
 
Item 9.01.  Financial Statements and Exhibits
 
(d) Exhibits

Exhibit Number	 	Description	
 	 	 	
99	 	Press Release, dated as of January 26, 2012, of 3M Company (furnished pursuant to Item 2.02 hereof)	
 
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 hereunto duly authorized.

 	3M COMPANY	
 	 	
 	By:	/s/ Gregg M. Larson	
 	 	Gregg M. Larson,	
 	 	Deputy General Counsel and Secretary	

Dated: January 26, 2012	 	 	
 
2 

Exhibit 99
 
FOR IMMEDIATE RELEASE
 
3M Posts Fourth-Quarter Sales of $7.1 Billion and Earnings of $1.35 per Share;
Full-Year Sales Rise 11 Percent to $29.6 Billion
 
ST. PAUL, Minn. — Jan. 26, 2012 — 3M (NYSE: MMM) today reported record fourth-quarter sales of $7.1 billion, up 5.7 percent year-on-year. Earnings were $1.35 per share, an increase of 5.5 percent versus the fourth quarter of 2010. The company generated $1.2 billion in free cash flow during the quarter, equal to 128 percent of net income.
 
Fourth-quarter organic local-currency sales growth was 3.3 percent, of which 1.3 percent came from organic volume improvement and 2.0 percent from higher year-on-year selling prices. Acquisitions added 2.3 percent to sales and foreign exchange impacts added another 0.1 percent.
 
Sales growth was strongest in Industrial and Transportation at 14.3 percent, Safety, Security and Protection Services at 9.4 percent, Consumer and Office at 6.1 percent and Health Care at 5.4 percent. Sales declined 2.7 percent in Electro and Communications and 8.8 percent in Display and Graphics, as many customers continued to modify production levels in line with weaker demand. On a geographic basis, sales growth was strongest in Latin America/Canada at 9.7 percent and the U.S. at 7.4 percent.
 
For the full year 2011, 3M posted sales of $29.6 billion, up 11.1 percent. Five of the company’s six business segments posted growth for the year, led by Industrial and Transportation at 19.5 percent and Safety, Security and Protection Services at 15.2 percent. Latin America/Canada was the fastest-growing geographic region in 2011 at 15.6 percent. Full-year 2011 earnings were $5.96 per share, an increase of 5.9 percent, operating margins were 20.9 percent and return on invested capital was 19.9 percent.
 
“2011 was a successful year for 3M, with record sales and earnings per share,” said George W. Buckley, 3M chairman, president and chief executive officer. “We were resilient enough to achieve these results in the face of deteriorating demand in both Western Europe and consumer electronics. Our commitment to the future continued, with investments of $1.6 billion in research and development and $1.4 billion in capital expenditures during the year, aimed primarily at faster growing markets. Our 2011 results demonstrate the underlying strength of 3M’s business model, as we once again generated double-digit top-line growth and premium return on capital. My thanks to 3Mers everywhere for another outstanding year.”
 
Buckley continued, “Looking ahead, we believe that slower growth will persist into the first half of 2012, so we will increase attention to the bottom line in the near term. We know that in uncertain times, it is even more important that we innovate and differentiate ourselves, therefore we will preserve key investments in R&D, sales and manufacturing to achieve accelerated growth.”
 
3M affirmed its 2012 full-year performance expectations. The company expects earnings to be in the range of $6.25 to $6.50 per share with organic sales volume growth of 2 to 5 percent. Operating income margins are expected to be between 21 and 22.5 percent for the year.

 
Fourth Quarter Business Segment Discussion
 
Industrial and Transportation
 
·                   Sales of $2.4 billion, up 14.3 percent, including 5.9 percent from acquisitions.
·                   All businesses grew sales in local currencies, with double-digit increases in abrasives, aerospace, industrial adhesives and tapes, energy and advanced materials and automotive.
·                   Sales increased double-digits in all geographic regions.
·                   Operating income rose 14.0 percent to $472 million; operating income margin of 19.6 percent.
 
Health Care
 
·                   Sales of $1.3 billion, up 5.4 percent.
·                   Local-currency sales increased in all businesses, led by infection prevention, skin and wound care, health information systems, food safety and drug delivery systems businesses.
·                   Double-digit sales growth in both Asia Pacific and Latin America/Canada.
·                   Operating income increased 12.0 percent to $389 million; operating income margin of 30.8 percent.
 
Consumer and Office
 
·                   Sales of $1.0 billion, up 6.1 percent, including 3.1 percent from acquisitions.
·                   Positive local-currency sales growth in DIY, stationery products, office supplies and home care products.
·                   Sales increased double-digits in Europe, boosted by acquisitions, and in Asia Pacific; sales up just slightly in the U.S.
·                   Operating income rose 2.4 percent to $179 million; operating income margin was 17.6 percent, negatively impacted by recent GPI acquisition.
 
Safety, Security and Protection Services
 
·                   Sales of $927 million, up 9.4 percent.
·                   Double-digit local-currency sales growth in security systems and personal safety; sales up single-digits in building and commercial services.
·                   Sales in roofing granules business declined due to channel inventory reductions.
·                   Sales growth was strongest in the U.S. and Latin America/Canada.
·                   Operating income rose 4.0 percent to $171 million; operating margin of 18.5 percent.
 
Display and Graphics
 
·                   Sales of $823 million, down 8.8 percent.
·                   Local currency sales declined 17 percent in optical systems, impacted by slower consumer electronics activity and lower LCD TV attachment rates.
·                   Sales in traffic safety systems declined in local currency; government highway funding remains weak, particularly in the U.S. and Western Europe.
·                   Local-currency sales rose in both architectural markets and commercial graphics.
·                   Largest sales declines in Asia Pacific, largely electronics-related, and in Europe.
·                   Operating income rose 9.7 percent to $157 million; operating margin of 19.2 percent.

 
Electro and Communications
 
·                   Sales of $768 million, down 2.7 percent.
·                   Local-currency sales to consumer electronics down high single digits, impacted by decelerating end-market demand.
·                   Single-digit local currency sales growth in electrical business; communication markets’ sales were flat year-on-year.
·                   Sales rose in Latin America/Canada, the U.S. and Europe; Asia Pacific sales down due to electronics.
·                   Operating income of $153 million, down 7.2 percent; operating margin of 19.8 percent.
 
3M will conduct an investor teleconference at 9:00 a.m. EST (8:00 a.m. CST) today. Investors can access this conference via the following:
 
·                Live webcast at http://investor.3M.com.
·                Live telephone:
Call 800-762-2596 within the U.S. or +1 212-231-2916 outside the U.S. Please join the call at least ten minutes before the start time.
·                Webcast replay:
Go to 3M’s Investor Relations website at http://investor.3M.com and click on “Quarterly Earnings.”
·                Telephone replay:
Call 800-633-8284 (for both U.S. and outside the U.S.; access code is 21538619).
The telephone replay will be available until 10:00 a.m. CST on January 31, 2012.
 
Forward-Looking Statements
 
This news release contains forward-looking information about 3M’s financial results and estimates and business prospects 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,” “will,” “target,” “forecast” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic and capital markets conditions and other factors beyond the Company’s control, including natural and other disasters affecting the operations of the Company or its customers; (2) the Company’s credit ratings and its cost of capital; (3) competitive conditions and customer preferences; (4) foreign currency exchange rates and fluctuations in those rates; (5) the timing and acceptance of new product offerings; (6) the availability and cost of purchased components, compounds, raw materials and energy (including oil and natural gas and their derivatives) due to shortages, increased demand or supply interruptions (including those caused by natural and other disasters and other events); (7) the impact of acquisitions, strategic alliances, divestitures, and other unusual events resulting from portfolio management actions and other evolving business strategies, and possible organizational restructuring; (8) generating fewer productivity improvements than estimated; and (9) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the company’s Annual Report on Form 10-K for the year ended December 31, 2010 and its subsequent quarterly reports on Form 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 under “Cautionary Note Concerning Factors That May Affect Future Results” and “Risk Factors” in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Report). 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 news release as a result of new information or future events or developments.

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

 	 	Three-months ended	 	Twelve-months ended	 	
 	 	December 31,	 	December 31,	 	
 	 	2011	 	2010	 	2011	 	2010	 	
 	 	 	 	 	 	 	 	 	 	
Net sales	 	$	7,089	 	$	6,709	 	$	29,611	 	$	26,662	 	
 	 	 	 	 	 	 	 	 	 	
Operating expenses	 	 	 	 	 	 	 	 	 	
Cost of sales	 	3,824	 	3,575	 	15,693	 	13,831	 	
Selling, general and administrative expenses	 	1,522	 	1,445	 	6,170	 	5,479	 	
Research, development and related expenses	 	379	 	388	 	1,570	 	1,434	 	
Total operating expenses	 	5,725	 	5,408	 	23,433	 	20,744	 	
 	 	 	 	 	 	 	 	 	 	
Operating income	 	1,364	 	1,301	 	6,178	 	5,918	 	
 	 	 	 	 	 	 	 	 	 	
Interest expense and income	 	 	 	 	 	 	 	 	 	
Interest expense	 	45	 	50	 	186	 	201	 	
Interest income	 	(10	)	(11	)	(39	)	(38	)	
Total interest expense — net	 	35	 	39	 	147	 	163	 	
 	 	 	 	 	 	 	 	 	 	
Income before income taxes	 	1,329	 	1,262	 	6,031	 	5,755	 	
 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	 	355	 	319	 	1,674	 	1,592	 	
 	 	 	 	 	 	 	 	 	 	
Net income including noncontrolling interest	 	$	974	 	$	943	 	$	4,357	 	$	4,163	 	
 	 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	20	 	15	 	74	 	78	 	
 	 	 	 	 	 	 	 	 	 	
Net income attributable to 3M	 	$	954	 	$	928	 	$	4,283	 	$	4,085	 	
 	 	 	 	 	 	 	 	 	 	
Weighted average 3M common shares outstanding — basic	 	701.2	 	714.6	 	708.5	 	713.7	 	
Earnings per share attributable to 3M common shareholders — basic	 	$	1.36	 	$	1.30	 	$	6.05	 	$	5.72	 	
 	 	 	 	 	 	 	 	 	 	
Weighted average 3M common shares outstanding — diluted	 	707.5	 	727.8	 	719.0	 	725.5	 	
Earnings per share attributable to 3M common shareholders — diluted	 	$	1.35	 	$	1.28	 	$	5.96	 	$	5.63	 	
 	 	 	 	 	 	 	 	 	 	
Cash dividends paid per 3M common share	 	$	0.55	 	$	0.525	 	$	2.20	 	$	2.10	 	

 

3M Company and Subsidiaries
SUPPLEMENTAL CONSOLIDATED STATEMENT OF INCOME INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Millions, except per-share amounts)
(Unaudited)
 
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the company also discusses non-GAAP measures that exclude special items. Operating income, net income attributable to 3M (hereafter referred to as “net income”), and diluted earnings per share attributable to 3M common shareholders (hereafter referred to as “diluted earnings per share”) are all measures for which 3M provides the reported GAAP measure and an adjusted measure (excluding special items). Special items are not in accordance with, nor are they a substitute for, GAAP measures. Special items represent significant charges or credits that are important to an understanding of the company’s ongoing operations. The company uses these non-GAAP measures to evaluate and manage the company’s operations. The company believes that discussion of results excluding special items provides a useful analysis of ongoing operating trends. The determination of special items may not be comparable to similarly titled measures used by other companies.
 
The reconciliation provided below reconciles the non-GAAP financial measures with the most directly comparable GAAP financial measures for the twelve-months ended December 31, 2010.  There were no special items for the three-months and twelve-months ended December 31, 2011, or for the three-months ended December 31, 2010.

 	 	Twelve-months ended
December 31, 2010	 	
 	 	 	 	 	 	Diluted	 	
 	 	Operating	 	Net	 	earnings	 	
 	 	income	 	income	 	per share	 	
Reported GAAP measure	 	$	5,918	 	$	4,085	 	$	5.63	 	
 	 	 	 	 	 	 	 	
Special items:	 	 	 	 	 	 	 	
Medicare tax change (a)	 	—	 	84	 	0.12	 	
 	 	 	 	 	 	 	 	
Adjusted Non-GAAP measure	 	$	5,918	 	$	4,169	 	$	5.75	 	

(a)           The twelve-months ended December 31, 2010 includes a one-time, non-cash income tax charge of $84 million, or 12 cents per diluted share, resulting from the March 2010 enactment of the Patient Protection and Affordable Care Act, including modifications made in the Health Care and Education Reconciliation Act of 2010 (collectively, the “Act”).  The charge is due to a reduction in the value of the Company’s deferred tax asset as a result of the Act’s change to the tax treatment of Medicare Part D reimbursements.

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

 	 	Dec. 31,	 	Dec. 31,	 	
 	 	2011	 	2010	 	
ASSETS	 	 	 	 	 	
Current assets	 	 	 	 	 	
Cash and cash equivalents	 	$	2,219	 	$	3,377	 	
Marketable securities — current	 	1,461	 	1,101	 	
Accounts receivable — net	 	3,867	 	3,615	 	
Inventories	 	3,416	 	3,155	 	
Other current assets	 	1,277	 	967	 	
Total current assets	 	12,240	 	12,215	 	
Marketable securities — non-current	 	896	 	540	 	
Investments	 	155	 	146	 	
Property, plant and equipment — net	 	7,666	 	7,279	 	
Goodwill and intangible assets — net	 	8,963	 	8,640	 	
Prepaid pension benefits	 	40	 	74	 	
Other assets (b)	 	1,656	 	1,262	 	
Total assets	 	$	31,616	 	$	30,156	 	
 	 	 	 	 	 	
LIABILITIES AND EQUITY	 	 	 	 	 	
Current liabilities	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	682	 	$	1,269	 	
Accounts payable	 	1,643	 	1,662	 	
Accrued payroll	 	676	 	778	 	
Accrued income taxes	 	355	 	358	 	
Other current liabilities	 	2,085	 	2,022	 	
Total current liabilities	 	5,441	 	6,089	 	
Long-term debt	 	4,484	 	4,183	 	
Pension and postretirement benefits (b)	 	3,972	 	2,013	 	
Other liabilities	 	1,857	 	1,854	 	
Total liabilities	 	$	15,754	 	$	14,139	 	
 	 	 	 	 	 	
Total equity (b)	 	$	15,862	 	$	16,017	 	
Shares outstanding	 	 	 	 	 	
December 31, 2011: 694,970,041 shares	 	 	 	 	 	
December 31, 2010: 711,977,608 shares	 	 	 	 	 	
Total liabilities and equity	 	$	31,616	 	$	30,156	 	

(b)          The changes in 3M’s defined benefit pension and postretirement plans’ funded status, which is required to be measured as of each year-end, significantly impacted several balance sheet lines. These required annual measurements increased non-funded pension and postretirement benefits’ long-term liabilities by approximately $2.4 billion (primarily due to a decrease in discount rates) and decreased stockholders’ equity by approximately $1.6 billion, with the other major impact primarily related to increased deferred taxes within other assets. Other pension and postretirement changes during the year, such as contributions and amortization, also impacted these balance sheet captions.

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

 	 	Twelve-months ended	 	
 	 	December 31,	 	
 	 	2011	 	2010	 	
 	 	 	 	 	 	
NET CASH PROVIDED BY OPERATING ACTIVITIES	 	$	5,284	 	$	5,174	 	
 	 	 	 	 	 	
Cash flows from investing activities:	 	 	 	 	 	
Purchases of property, plant and equipment	 	(1,379	)	(1,091	)	
Acquisitions, net of cash acquired	 	(649	)	(1,830	)	
Purchases and proceeds from sale or maturities of marketable securities and investments — net	 	(745	)	273	 	
Other investing activities	 	55	 	22	 	
NET CASH USED IN INVESTING ACTIVITIES	 	(2,718	)	(2,626	)	
 	 	 	 	 	 	
Cash flows from financing activities:	 	 	 	 	 	
Change in debt	 	(307	)	(472	)	
Purchases of treasury stock	 	(2,701	)	(854	)	
Proceeds from issuances of treasury stock pursuant to stock option and benefit plans	 	902	 	666	 	
Dividends paid to shareholders	 	(1,555	)	(1,500	)	
Other financing activities	 	(14	)	(24	)	
NET CASH USED IN FINANCING ACTIVITIES	 	(3,675	)	(2,184	)	
 	 	 	 	 	 	
Effect of exchange rate changes on cash and cash equivalents	 	(49	)	(27	)	
Net increase (decrease) in cash and cash equivalents	 	(1,158	)	337	 	
Cash and cash equivalents at beginning of year	 	3,377	 	3,040	 	
Cash and cash equivalents at end of period	 	$	2,219	 	$	3,377	 	

(c)	The Company revised the amounts previously presented for cash used in investing activities and cash used in financing activities for the year ended December 31, 2010 by $63 million. This revision related to purchases of additional shares (noncontrolling interest) of non-wholly owned consolidated subsidiaries. These immaterial revisions increased cash used in financing activities and decreased cash used in investing activities.	

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

 	 	Three-months ended	 	Twelve-months ended	 	
 	 	December 31,	 	December 31,	 	
 	 	2011	 	2010	 	2011	 	2010	 	
 	 	 	 	 	 	 	 	 	 	
NON-GAAP MEASURES	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Free Cash Flow:	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	$	1,738	 	$	1,631	 	$	5,284	 	$	5,174	 	
Purchases of property, plant and equipment	 	(517	)	(526	)	(1,379	)	(1,091	)	
 	 	 	 	 	 	 	 	 	 	
Free Cash Flow (d)	 	$	1,221	 	$	1,105	 	$	3,905	 	$	4,083	 	

(d)	Free cash flow is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with 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.	

 	 	2011	 	2010	 	 	 	 	 	
OTHER NON-GAAP MEASURES:	 	 	 	 	 	 	 	 	 	
Net Working Capital Turns at Dec. 31 (e)	 	5.0	 	5.3	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Return on Invested Capital for the twelve-months ended Dec. 31 (f)	 	19.9	%	20.9	%	 	 	 	 	

(e)	The company uses various working capital 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. GAAP and may not be comparable to similarly titled measures used by other companies.	
 	 	
(f)	The company uses non-GAAP measures to focus on shareholder value creation. 3M uses Return on Invested Capital (ROIC), defined as annualized after-tax operating income (including interest income) divided by average operating capital. Operating capital is defined as net assets (total assets less total liabilities) excluding debt. This measure is not recognized under U.S. GAAP 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, 2011	 	
Sales Change Analysis
By Geographic Area	 	United
States	 	Asia-
Pacific	 	Europe,
Middle
East and
Africa	 	Latin
America/
Canada	 	World-Wide	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Volume — organic	 	3.7	%	(2.1	)%	(1.5	)%	8.6	%	1.3	%	
Price	 	3.0	 	(0.6	)	2.5	 	4.6	 	2.0	 	
Organic local-currency sales	 	6.7	 	(2.7	)	1.0	 	13.2	 	3.3	 	
Acquisitions	 	0.7	 	3.4	 	4.0	 	0.4	 	2.3	 	
Local-currency sales	 	7.4	 	0.7	 	5.0	 	13.6	 	5.6	 	
Translation	 	—	 	2.1	 	(0.6	)	(3.9	)	0.1	 	
Total sales change	 	7.4	%	2.8	%	4.4	%	9.7	%	5.7	%	

 	 	Three-Months Ended December 31, 2011	 	
 	 	Organic	 	 	 	 	 	 	 	 	 	
World-Wide	 	local-	 	 	 	Local-	 	 	 	Total	 	
Sales Change Analysis	 	currency	 	 	 	currency	 	 	 	sales	 	
By Business Segment	 	sales	 	Acquisitions	 	sales	 	Translation	 	change	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Industrial and Transportation	 	8.3	%	5.9	%	14.2	%	0.1	%	14.3	%	
Health Care	 	5.4	%	—	%	5.4	%	—	%	5.4	%	
Consumer and Office	 	3.1	%	3.1	%	6.2	%	(0.1	)%	6.1	%	
Safety, Security and Protection Services	 	9.8	%	—	%	9.8	%	(0.4	)%	9.4	%	
Display and Graphics	 	(9.0	)%	—	%	(9.0	)%	0.2	%	(8.8	)%	
Electro and Communications	 	(3.3	)%	—	%	(3.3	)%	0.6	%	(2.7	)%	

 

 	 	Twelve-Months Ended December 31, 2011	 	
Sales Change Analysis
By Geographic Area	 	United
States	 	Asia-
Pacific	 	Europe,
Middle
East and
Africa	 	Latin
America/
Canada	 	World-Wide	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Volume — organic	 	4.0	%	3.5	%	1.6	%	7.4	%	3.7	%	
Price	 	1.9	 	(1.4	)	1.6	 	3.5	 	1.0	 	
Organic local-currency sales	 	5.9	 	2.1	 	3.2	 	10.9	 	4.7	 	
Acquisitions	 	3.0	 	3.5	 	4.6	 	1.1	 	3.3	 	
Local-currency sales	 	8.9	 	5.6	 	7.8	 	12.0	 	8.0	 	
Translation	 	—	 	4.7	 	5.3	 	3.6	 	3.1	 	
Total sales change	 	8.9	%	10.3	%	13.1	%	15.6	%	11.1	%	

 	 	Twelve-Months Ended December 31, 2011	 	
 	 	Organic	 	 	 	 	 	 	 	 	 	
World-Wide	 	local-	 	 	 	Local-	 	 	 	Total	 	
Sales Change Analysis	 	currency	 	 	 	currency	 	 	 	sales	 	
By Business Segment	 	sales	 	Acquisitions	 	sales	 	Translation	 	change	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Industrial and Transportation	 	10.0	%	5.9	%	15.9	%	3.6	%	19.5	%	
Health Care	 	4.6	%	3.8	%	8.4	%	3.1	%	11.5	%	
Consumer and Office	 	4.0	%	1.4	%	5.4	%	2.4	%	7.8	%	
Safety, Security and Protection Services	 	7.1	%	4.7	%	11.8	%	3.4	%	15.2	%	
Display and Graphics	 	(7.5	)%	0.1	%	(7.4	)%	2.0	%	(5.4	)%	
Electro and Communications	 	5.2	%	0.1	%	5.3	%	3.3	%	8.6	%	

 
3M Company and Subsidiaries
BUSINESS SEGMENTS
(Dollars in millions)
(Unaudited)
 
Effective in the first quarter of 2011, 3M made certain product moves between its business segments in its continuing effort to drive growth by aligning businesses around markets and customers. There were no changes impacting business segments related to product moves for the Display and Graphics segment or the Consumer and Office segment. In addition, 3M results in total did not change. The financial information presented herein reflects for all periods presented the impact of product moves between business segments, which are summarized as follows:
 
Certain pressure sensitive adhesives products within the Industrial Adhesives and Tapes Division and shock absorption and vibration dampening products used in electronics within the Aerospace and Aircraft Maintenance Department (both within the Industrial and Transportation business segment) were transferred to the Electronic Markets Materials Division (part of the Electro and Communications business segment). In addition, certain medical respirator products within the Infection Prevention Division (part of the Health Care business segment) were transferred to the Occupational Health and Environmental Safety Division (within the Safety, Security and Protection Services business segment). The preceding product moves resulted in decreases in net sales for the total year 2010 of $152 million in the Industrial and Transportation business segment and $8 million in the Health Care business segment. These decreases were offset by increases in net sales for the total year 2010 of $121 million for the Electro and Communications business segment and $8 million for the Safety, Security and Protection Services business segment along with a $31 million change in the elimination of dual credit sales and corporate and unallocated.

BUSINESS SEGMENT INFORMATION	 	Three-months ended	 	Twelve-months ended	 	
NET SALES	 	December 31,	 	December 31,	 	
(Millions)	 	2011	 	2010	 	2011	 	2010	 	
 	 	 	 	 	 	 	 	 	 	
Industrial and Transportation	 	$	2,402	 	$	2,101	 	$	10,073	 	$	8,429	 	
Health Care	 	1,261	 	1,197	 	5,031	 	4,513	 	
Consumer and Office	 	1,019	 	961	 	4,153	 	3,853	 	
Safety, Security and Protection Services	 	927	 	848	 	3,821	 	3,316	 	
Display and Graphics	 	823	 	903	 	3,674	 	3,884	 	
Electro and Communications	 	768	 	789	 	3,306	 	3,043	 	
Corporate and Unallocated	 	2	 	(2	)	11	 	10	 	
Elimination of Dual Credit	 	(113	)	(88	)	(458	)	(386	)	
 	 	 	 	 	 	 	 	 	 	
Total Company	 	$	7,089	 	$	6,709	 	$	29,611	 	$	26,662	 	

 

BUSINESS SEGMENT INFORMATION	 	Three-months ended	 	Twelve-months ended	 	
OPERATING INCOME	 	December 31,	 	December 31,	 	
(Millions)	 	2011	 	2010	 	2011	 	2010	 	
 	 	 	 	 	 	 	 	 	 	
Industrial and Transportation	 	$	472	 	$	414	 	$	2,057	 	$	1,754	 	
Health Care	 	389	 	347	 	1,489	 	1,362	 	
Consumer and Office	 	179	 	175	 	840	 	840	 	
Safety, Security and Protection Services	 	171	 	165	 	814	 	709	 	
Display and Graphics	 	157	 	144	 	788	 	946	 	
Electro and Communications	 	153	 	164	 	712	 	670	 	
Corporate and Unallocated	 	(132	)	(88	)	(421	)	(278	)	
Elimination of Dual Credit	 	(25	)	(20	)	(101	)	(85	)	
 	 	 	 	 	 	 	 	 	 	
Total Company	 	$	1,364	 	$	1,301	 	$	6,178	 	$	5,918	 	

 
About 3M
 
3M captures the spark of new ideas and transforms them into thousands of ingenious products.  Our culture of creative collaboration inspires a never-ending stream of powerful technologies that make life better.  3M is the innovation company that never stops inventing.  With $30 billion in sales, 3M employs 84,000 people worldwide and has operations in more than 65 countries.

Investor Contacts:	Matt Ginter	Media Contact:	Jacqueline Berry	
 	3M	 	3M	
 	(651) 733-8206	 	(651) 733-3611	
 	 	 	 	
 	Bruce Jermeland	 	 	
 	3M	 	 	
 	(651) 733-1807	 	 	
 
From:
3M Public Relations and Corporate Communications
3M Center, Building 225-1S-15
St. Paul, MN 55144-1000