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): April 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 April 18, 2005, 3M Company issued a press release reporting its sales and earnings results for the first quarter ended March 31, 2005 (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: April 18, 2005
 
2

 
EXHIBIT INDEX

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

Exhibit 99
 
FOR IMMEDIATE RELEASE
 
3M Reports Higher First-Quarter Sales and Earnings
Q1 2005 EPS Increases 14.4 percent
 
ST.  PAUL, Minn. – April 18, 2005 – 3M (NYSE:MMM) today announced a 14.4 percent increase in first-quarter earnings per share.
 
The company reported net income of $809 million, or $1.03 per share, versus $722 million, or $0.90 per share in the first quarter of 2004.  Net income increased 12.0 percent.
 
“Broad-based productivity improvements achieved through our corporate initiatives and solid growth in key areas, like optical films and health care, helped us deliver over 14 percent earnings per share growth in the first quarter,” said W. James McNerney, Jr., 3M Chairman and CEO.  “Improved operational efficiency, sales growth, and pricing were key to overcoming slow economic growth in Western Europe and Japan and continued raw material price pressure.”
 
Worldwide sales in the first quarter totaled $5.17 billion, 4.6 percent higher than in the year-earlier quarter. Local currency sales increased 2.3 percent, with selling prices contributing 0.5 percent.  Currency effects increased sales by 2.3 percent. Local-currency sales increased 5.2 percent in Health Care; 4.5 percent in Transportation; 3.0 percent in Safety, Security and Protection Services; 2.6 percent in Industrial; and 0.6 percent in Display and Graphics; and declined 0.5 percent in Consumer and Office, and 1.4 percent in Electro and Communications.
 
“Looking ahead, we will continue to leverage sales growth and productivity improvements into sustainable earnings growth despite continued slow growth in the mature economies,” McNerney said. “We expect to deliver higher organic growth rates the rest of this year through new product sales enabled by our diverse technology platforms; our Acceleration initiative; growth drivers, like LCD films; and our strong presence in fast-growth markets like China and Eastern Europe.”
 
3M also reaffirmed its earnings guidance for 2005.  For the year, the company expects earnings to be within a range of $4.15 to $4.25 per share. The company expects full-year local currency growth of 5 to 8 percent.  Second-quarter earnings are expected to be in the range of $1.08 to $1.10 per share, with local currency growth of 4 to 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.
 
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) generating less operating income 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, 2004 (the “Report”). Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the 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 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	 	
 	 	March 31	 	
 	 	2005	 	2004	 	
Net sales	 	$	5,166	 	$	4,939	 	
Operating expenses	 	 	 	 	 	
Cost of sales	 	2,537	 	2,436	 	
Selling, general and administrative expenses	 	1,114	 	1,104	 	
Research, development and related expenses	 	291	 	282	 	
Total	 	3,942	 	3,822	 	
Operating income	 	1,224	 	1,117	 	
Interest expense and income	 	 	 	 	 	
Interest expense	 	20	 	19	 	
Interest income	 	(16	)	(10	)	
Total	 	4	 	9	 	
Income before income taxes and minority interest	 	1,220	 	1,108	 	
Provision for income taxes	 	396	 	366	 	
Minority interest	 	15	 	20	 	
Net income	 	$	809	 	$	722	 	
Weighted average common shares outstanding – basic	 	771.7	 	782.9	 	
Earnings per share – basic	 	$	1.05	 	$	0.92	 	
Weighted average common shares outstanding – diluted	 	787.0	 	799.5	 	
Earnings per share – diluted	 	$	1.03	 	$	0.90	 	
Cash dividends paid per common share	 	$	0.42	 	$	0.36	 	

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

 	 	Mar. 31,	 	Dec. 31,	 	Mar. 31,	 	
 	 	2005	 	2004	 	2004	 	
ASSETS	 	 	 	 	 	 	 	
Current assets	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	2,669	 	$	2,757	 	$	1,818	 	
Accounts receivable – net	 	2,899	 	2,792	 	2,904	 	
Inventories	 	1,980	 	1,897	 	1,880	 	
Other current assets	 	1,374	 	1,274	 	1,461	 	
Total current assets	 	8,922	 	8,720	 	8,063	 	
Investments	 	280	 	227	 	211	 	
Property, plant and equipment – net	 	5,624	 	5,711	 	5,512	 	
Goodwill, intangible assets and other assets	 	5,929	 	6,050	 	4,192	 	
Total assets	 	$	20,755	 	$	20,708	 	$	17,978	 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	 	
Current liabilities	 	 	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	2,201	 	$	2,094	 	$	1,106	 	
Accounts payable	 	1,201	 	1,168	 	1,066	 	
Accrued payroll	 	492	 	487	 	471	 	
Accrued income taxes	 	950	 	867	 	986	 	
Other current liabilities	 	1,393	 	1,455	 	1,534	 	
Total current liabilities	 	6,237	 	6,071	 	5,163	 	
Long-term debt	 	707	 	727	 	1,718	 	
Other liabilities	 	3,521	 	3,532	 	2,996	 	
Total liabilities	 	10,465	 	10,330	 	9,877	 	
Total stockholders’ equity – net	 	10,290	 	10,378	 	8,101	 	
Shares outstanding	 	 	 	 	 	 	 	
March 31, 2005: 769,570,205 shares	 	 	 	 	 	 	 	
December 31, 2004: 773,518,281 shares	 	 	 	 	 	 	 	
March 31, 2004: 782,114,154 shares	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	 	$	20,755	 	$	20,708	 	$	17,978	 	

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

 	 	Three-months ended	 	
 	 	March 31	 	
 	 	2005	 	2004	 	
SUMMARY OF CASH FLOW:	 	 	 	 	 	
 	 	 	 	 	 	
NET CASH PROVIDED BY OPERATING ACTIVITIES	 	$	1,003	 	$	942	 	
 	 	 	 	 	 	
Cash flows from investing activities:	 	 	 	 	 	
Purchases of property, plant and equipment	 	(235	)	(158	)	
Acquisitions, net of cash acquired	 	—	 	(80	)	
Other investing activities	 	(67	)	19	 	
 	 	 	 	 	 	
NET CASH USED IN INVESTING ACTIVITIES	 	(302	)	(219	)	
Cash flows from financing activities:	 	 	 	 	 	
Change in debt	 	107	 	(133	)	
Purchases of treasury stock	 	(671	)	(438	)	
Reissuances of treasury stock	 	195	 	134	 	
Dividends paid to stockholders	 	(324	)	(282	)	
Other financing activities	 	(57	)	(12	)	
 	 	 	 	 	 	
NET CASH USED IN FINANCING ACTIVITIES	 	(750	)	(731	)	
 	 	 	 	 	 	
Effect of exchange rate changes on cash	 	(39	)	(10	)	
Net increase (decrease) in cash and cash equivalents	 	(88	)	(18	)	
Cash and cash equivalents at beginning of period	 	2,757	 	1,836	 	
Cash and cash equivalents at end of period	 	$	2,669	 	$	1,818	 	

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

 	 	Three-months ended	 	
 	 	March 31	 	
 	 	2005	 	2004	 	
NON-GAAP MEASURES	 	 	 	 	 	
 	 	 	 	 	 	
Free Cash Flow:	 	 	 	 	 	
Net cash provided by operating activities	 	$	1,003	 	$	942	 	
Purchases of property, plant and equipment	 	(235	)	(158	)	
Free Cash Flow (a)	 	$	768	 	$	784	 	
 	 	 	 	 	 	
Net Working Capital Turns (b)	 	5.6	 	5.3	 	

(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.

 
3M Company and Subsidiaries
SALES CHANGE ANALYSIS
(Unaudited)
 
Three-Months Ended March 31, 2005

Sales Change Analysis	 	United	 	 	 	 	 	
By Geographic Area	 	States	 	International	 	Worldwide	 	
Volume – core	 	1.1	%	1.8	%	1.5	%	
 	 	 	 	 	 	 	 	
Volume – acquisitions	 	0.4	 	0.2	 	0.3	 	
Volume – total	 	1.5	 	2.0	 	1.8	 	
 	 	 	 	 	 	 	 	
Price	 	1.7	 	(0.2	)	0.5	 	
Total local-currency sales	 	3.2	 	1.8	 	2.3	 	
 	 	 	 	 	 	 	 	
Translation	 	—	 	3.7	 	2.3	 	
Total sales change	 	3.2	%	5.5	%	4.6	%	

Worldwide	 	Local-	 	 	 	Total	 	
Sales Change Analysis	 	currency	 	 	 	Sales	 	
By Business Segment	 	Sales	 	Translation	 	Change	 	
Health Care	 	5.2	%	2.7	%	7.9	%	
 	 	 	 	 	 	 	 	
Industrial	 	2.6	 	2.9	 	5.5	 	
 	 	 	 	 	 	 	 	
Display and Graphics	 	0.6	 	1.4	 	2.0	 	
 	 	 	 	 	 	 	 	
Consumer and Office	 	(0.5	)	2.3	 	1.8	 	
 	 	 	 	 	 	 	 	
Safety, Security and Protection Services	 	3.0	 	2.6	 	5.6	 	
 	 	 	 	 	 	 	 	
Electro and Communications	 	(1.4	)	2.4	 	1.0	 	
 	 	 	 	 	 	 	 	
Transportation	 	4.5	 	2.8	 	7.3	 	

 
3M Company and Subsidiaries
BUSINESS SEGMENTS
(Dollars in millions)
(Unaudited)
 
Effective January 1, 2005, as part of the continuing effort to drive growth by aligning businesses around markets and customers, the Electronics Markets Materials Division and certain high temperature and display tapes (2004 sales of approximately $350 million) within the Industrial Business transferred to the Electro and Communications Business, and the converter markets product line (2004 sales of approximately $10 million) within the Transportation Business transferred to the Display and Graphics Business. Internal management reporting for these business segment transfers commenced January 1, 2005, with segment information for all periods presented adjusted to reflect the new segment structure.

BUSINESS	 	 	 	 	 	
SEGMENT	 	Three-months ended	 	
INFORMATION	 	March 31	 	
(Millions)	 	2005	 	2004	 	
 	 	 	 	 	 	
NET SALES	 	 	 	 	 	
Health Care	 	$	1,113	 	$	1,031	 	
Industrial	 	904	 	856	 	
Display and Graphics	 	862	 	845	 	
Consumer and Office	 	699	 	686	 	
Safety, Security and Protection Services	 	557	 	527	 	
Electro and Communications	 	557	 	551	 	
Transportation	 	467	 	435	 	
Corporate and Unallocated	 	7	 	8	 	
Total Company	 	$	5,166	 	$	4,939	 	
 	 	 	 	 	 	
OPERATING INCOME	 	 	 	 	 	
Health Care	 	$	309	 	$	262	 	
Industrial	 	184	 	154	 	
Display and Graphics	 	286	 	294	 	
Consumer and Office	 	122	 	122	 	
Safety, Security and Protection Services	 	133	 	125	 	
Electro and Communications	 	103	 	77	 	
Transportation	 	126	 	119	 	
Corporate and Unallocated	 	(39	)	(36	)	
Total Company	 	$	1,224	 	$	1,117	 	

 
3M Company and Subsidiaries
SUPPLEMENTAL UNAUDITED BUSINESS SEGMENT INFORMATION
(Dollars in millions)
(Unaudited)
 
3M is also including supplemental unaudited business segment information on both an annual and quarterly basis for the years ended December 31, 2004, 2003 and 2002 reflecting adjusted historical information for the new segment structure.  The company has begun reporting results under this new structure effective January 1, 2005.
 
Supplemental Unaudited Annual Business Segment Information Based on Structure Effective January 1, 2005:

Business Segment	 	 	 	 	 	 	 	 	 	Depr.	 	 	 	
Information	 	 	 	Net	 	Operating	 	 	 	and	 	Capital	 	
(Millions)	 	 	 	Sales	 	Income	 	Assets	 	Amort.	 	Expenditures	 	
Health Care	 	2004	 	$	4,230	 	$	1,123	 	$	2,636	 	$	179	 	$	165	 	
 	 	2003	 	3,995	 	1,027	 	2,544	 	169	 	144	 	
 	 	2002	 	3,560	 	900	 	2,409	 	166	 	183	 	
Industrial	 	2004	 	3,444	 	610	 	2,451	 	181	 	154	 	
 	 	2003	 	3,070	 	425	 	2,390	 	185	 	139	 	
 	 	2002	 	2,943	 	478	 	2,447	 	168	 	154	 	
Display and Graphics	 	2004	 	3,416	 	1,133	 	2,647	 	178	 	261	 	
 	 	2003	 	2,970	 	886	 	2,570	 	159	 	126	 	
 	 	2002	 	2,237	 	535	 	2,476	 	135	 	84	 	
Consumer and Office	 	2004	 	2,861	 	542	 	1,468	 	104	 	106	 	
 	 	2003	 	2,607	 	460	 	1,378	 	108	 	86	 	
 	 	2002	 	2,444	 	448	 	1,354	 	108	 	90	 	
Safety, Security and Protection	 	2004	 	2,125	 	491	 	1,317	 	101	 	99	 	
Services	 	2003	 	1,928	 	437	 	1,139	 	100	 	46	 	
 	 	2002	 	1,686	 	338	 	1,097	 	97	 	105	 	
Electro and Communications	 	2004	 	2,224	 	342	 	1,801	 	163	 	95	 	
 	 	2003	 	2,101	 	288	 	1,833	 	165	 	65	 	
 	 	2002	 	2,034	 	262	 	1,871	 	158	 	81	 	
Transportation	 	2004	 	1,674	 	426	 	887	 	63	 	56	 	
 	 	2003	 	1,531	 	388	 	872	 	68	 	64	 	
 	 	2002	 	1,380	 	331	 	846	 	66	 	58	 	
Corporate and Unallocated	 	2004	 	37	 	(89	)	7,501	 	30	 	1	 	
 	 	2003	 	30	 	(198	)	4,874	 	10	 	7	 	
 	 	2002	 	48	 	(246	)	2,829	 	56	 	8	 	
Total Company	 	2004	 	$	20,011	 	$	4,578	 	$	20,708	 	$	999	 	$	937	 	
 	 	2003	 	18,232	 	3,713	 	17,600	 	964	 	677	 	
 	 	2002	 	16,332	 	3,046	 	15,329	 	954	 	763	 	
 
Segment assets for the seven operating business segments (excluding Corporate and Unallocated) primarily include accounts receivable; inventory; property, plant and equipment – net; goodwill and intangible assets; and other miscellaneous assets. Assets included in Corporate and Unallocated principally are cash and cash equivalents; insurance receivables; deferred income taxes; certain investments and other assets, including prepaid pension assets; and certain unallocated property,

 
plant and equipment. Corporate and Unallocated assets increased approximately $2.6 billion in 2004, primarily due to increases in prepaid pension assets ($2.0 billion) and increases in cash and cash equivalents ($0.9 billion), with partial offsets in other asset accounts. Corporate and Unallocated assets increased approximately $2.0 billion in 2003 due to increases in cash and cash equivalents ($1.2 billion), increases in other current assets and other assets primarily related to higher insurance receivables and prepaid items ($500 million), and goodwill increases related to the 2003 acquisition of an additional 25% of Sumitomo 3M ($300 million). For management reporting purposes, corporate goodwill (which at December 31, 2004, totaled approximately $360 million), is not allocated to the seven operating business segments. Corporate goodwill has been allocated to the respective market segments as required by SFAS No. 142 for impairment testing.
 
Corporate and Unallocated operating income principally includes corporate investment gains and losses, certain derivative gains and losses, insurance-related gains and losses, certain litigation expenses, corporate restructuring program charges and other miscellaneous items. Because this category includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. In 2004, Corporate and Unallocated operating income includes increases of $40 million in the respirator mask/asbestos litigation reserves, partially offset by a $20 million increase in the associated receivables resulting in a net cost of $20 million, and also includes a $6 million increase in implant litigation reserves and a $10 million decrease in implant receivables resulting in a net cost of $16 million. In 2003, this includes a pre-tax charge of $93 million recorded during the first quarter related to an adverse ruling associated with a lawsuit filed against 3M in 1997 by LePage’s Inc. Corporate and unallocated operating income in 2003 also includes increases of $231 million in the respirator mask/asbestos litigation reserves, partially offset by a $205 million increase in the associated receivables, resulting in a net cost of $26 million. In 2002, Corporate and Unallocated operating income includes charges of $202 million related to the 2001/2002 corporate restructuring program. Depreciation and amortization of $954 million included accelerated depreciation (shortened lives) of $47 million related to the restructuring plan (recorded in Corporate and Unallocated).

 
Supplemental Unaudited Quarterly Business Segment Information Based on Structure Effective January 1, 2005:

NET SALES	 	 	 	First	 	Second	 	Third	 	Fourth	 	Total	 	
(Millions)	 	 	 	Quarter	 	Quarter	 	Quarter	 	Quarter	 	Year	 	
Health Care	 	2004	 	$	1,031	 	$	1,049	 	$	1,035	 	$	1,115	 	$	4,230	 	
 	 	2003	 	946	 	1,017	 	1,012	 	1,020	 	3,995	 	
 	 	2002	 	845	 	896	 	901	 	918	 	3,560	 	
Industrial	 	2004	 	856	 	867	 	852	 	869	 	3,444	 	
 	 	2003	 	756	 	764	 	759	 	791	 	3,070	 	
 	 	2002	 	707	 	750	 	743	 	743	 	2,943	 	
Display and Graphics	 	2004	 	845	 	884	 	843	 	844	 	3,416	 	
 	 	2003	 	663	 	721	 	774	 	812	 	2,970	 	
 	 	2002	 	507	 	585	 	574	 	571	 	2,237	 	
Consumer and Office	 	2004	 	686	 	675	 	737	 	763	 	2,861	 	
 	 	2003	 	612	 	637	 	673	 	685	 	2,607	 	
 	 	2002	 	569	 	602	 	628	 	645	 	2,444	 	
Safety, Security and Protection	 	2004	 	527	 	547	 	525	 	526	 	2,125	 	
Services	 	2003	 	458	 	518	 	482	 	470	 	1,928	 	
 	 	2002	 	413	 	445	 	423	 	405	 	1,686	 	
Electro and Communications	 	2004	 	551	 	572	 	557	 	544	 	2,224	 	
 	 	2003	 	500	 	532	 	524	 	545	 	2,101	 	
 	 	2002	 	490	 	532	 	513	 	499	 	2,034	 	
Transportation	 	2004	 	435	 	409	 	409	 	421	 	1,674	 	
 	 	2003	 	379	 	381	 	384	 	387	 	1,531	 	
 	 	2002	 	347	 	337	 	350	 	346	 	1,380	 	
Corporate and Unallocated	 	2004	 	8	 	9	 	11	 	9	 	37	 	
 	 	2003	 	4	 	10	 	8	 	8	 	30	 	
 	 	2002	 	12	 	14	 	11	 	11	 	48	 	
Total Company	 	2004	 	$	4,939	 	$	5,012	 	$	4,969	 	$	5,091	 	$	20,011	 	
 	 	2003	 	4,318	 	4,580	 	4,616	 	4,718	 	18,232	 	
 	 	2002	 	3,890	 	4,161	 	4,143	 	4,138	 	16,332	 	

 
Supplemental Unaudited Quarterly Business Segment Information Based on Structure Effective January 1, 2005:

OPERATING INCOME	 	 	 	First	 	Second	 	Third	 	Fourth	 	Total	 	
(Millions)	 	 	 	Quarter	 	Quarter	 	Quarter	 	Quarter	 	Year	 	
Health Care	 	2004	 	$	262	 	$	274	 	$	277	 	$	310	 	$	1,123	 	
 	 	2003	 	238	 	263	 	272	 	254	 	1,027	 	
 	 	2002	 	220	 	213	 	224	 	243	 	900	 	
Industrial	 	2004	 	154	 	158	 	157	 	141	 	610	 	
 	 	2003	 	122	 	96	 	106	 	101	 	425	 	
 	 	2002	 	112	 	129	 	126	 	111	 	478	 	
Display and Graphics	 	2004	 	294	 	312	 	287	 	240	 	1,133	 	
 	 	2003	 	182	 	210	 	251	 	243	 	886	 	
 	 	2002	 	118	 	147	 	141	 	129	 	535	 	
Consumer and Office	 	2004	 	122	 	123	 	150	 	147	 	542	 	
 	 	2003	 	110	 	108	 	128	 	114	 	460	 	
 	 	2002	 	105	 	108	 	121	 	114	 	448	 	
Safety, Security and Protection	 	2004	 	125	 	136	 	123	 	107	 	491	 	
Services	 	2003	 	105	 	131	 	111	 	90	 	437	 	
 	 	2002	 	86	 	92	 	89	 	71	 	338	 	
Electro and Communications	 	2004	 	77	 	89	 	92	 	84	 	342	 	
 	 	2003	 	58	 	77	 	75	 	78	 	288	 	
 	 	2002	 	51	 	82	 	70	 	59	 	262	 	
Transportation	 	2004	 	119	 	105	 	104	 	98	 	426	 	
 	 	2003	 	100	 	94	 	106	 	88	 	388	 	
 	 	2002	 	85	 	79	 	87	 	80	 	331	 	
Corporate and Unallocated	 	2004	 	(36	)	(11	)	(7	)	(35	)	(89	)	
 	 	2003	 	(134	)	(19	)	(19	)	(26	)	(198	)	
 	 	2002	 	(64	)	(164	)	(7	)	(11	)	(246	)	
Total Company	 	2004	 	$	1,117	 	$	1,186	 	$	1,183	 	$	1,092	 	$	4,578	 	
 	 	2003	 	781	 	960	 	1,030	 	942	 	3,713	 	
 	 	2002	 	713	 	686	 	851	 	796	 	3,046	 	

 
3M Company and Subsidiaries
SUPPLEMENTAL UNAUDITED GEOGRAPHIC AREA INFORMATION
(Dollars in millions)
(Unaudited)
 
Effective January 1, 2005, the Company realigned its reporting for the African Region, which previously was included in the Latin America/Canada Region, to the Europe and Middle East Region.  3M is including below supplemental unaudited segment information on an annual basis for the years ended December 31, 2004, 2003 and 2002 reflecting adjusted historical information for its new geographic area structure.  Reporting for this new geographic area structure commenced January 1, 2005. Geographic area information, which the Company uses as a secondary performance measure to manage its businesses, follows. Export sales and certain income and expense items are reported within the geographic area where the final sales to 3M customers are made.
 
Supplemental Unaudited Annual Geographic Area Information Based on Structure Effective January 1, 2005:
 
Geographic Area Information

 	 	 	 	 	 	 	 	 	 	Latin	 	 	 	 	 	
 	 	 	 	 	 	Europe,	 	 	 	America	 	 	 	 	 	
 	 	 	 	United	 	Middle	 	Asia	 	and	 	Other	 	Total	 	
(Millions)	 	 	 	States	 	East and Africa	 	Pacific	 	Canada	 	Unallocated	 	Company	 	
Net sales to customers	 	2004	 	$	7,878	 	$	5,183	 	$	5,168	 	$	1,731	 	$	51	 	$	20,011	 	
 	 	2003	 	7,581	 	4,718	 	4,335	 	1,556	 	42	 	18,232	 	
 	 	2002	 	7,426	 	4,111	 	3,431	 	1,316	 	48	 	16,332	 	
Operating income	 	2004	 	$	1,200	 	$	1,014	 	$	1,874	 	$	483	 	$	7	 	$	4,578	 	
 	 	2003	 	1,213	 	809	 	1,373	 	427	 	(109	)	3,713	 	
 	 	2002	 	1,180	 	704	 	1,009	 	370	 	(217	)	3,046	 	
Property, plant and equipment – net	 	2004	 	$	3,290	 	$	1,288	 	$	810	 	$	323	 	$	—	 	$	5,711	 	
 	 	2003	 	3,342	 	1,235	 	724	 	308	 	—	 	5,609	 	
 	 	2002	 	3,523	 	1,139	 	676	 	283	 	—	 	5,621	 	
 
In 2003, operating income for other unallocated includes pre-tax charges of $93 million related to an adverse ruling in a lawsuit filed against 3M in 1997 by LePage’s Inc. In 2002, operating income for other unallocated includes losses totaling $202 million related to the 2001/2002 corporate restructuring program.

Investor Contacts:	 	Mark Colin	 	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