3M Earnings Rise 28 Percent
Jan. 26, 2000
MINNEAPOLIS (AP) _ Minnesota Mining and Manufacturing Co., maker of Scotch tape and Post-It notes, reported a 28 percent rise in fourth-quarter profits Wednesday, driven by strong sales of new products and a rebound in Asia.
For the quarter ended Dec. 31, 3M earned $444 million, or $1.10 per share, compared with $348 million, or 86 cents a share, excluding a non-recurring restructuring charge taken in the final quarter of 1998.
The earnings easily beat analyst expectations of $1.02 per share, as reported by First Call/Thomson Financial. 3M's stock jumped 6 percent on the New York Stock Exchange, rising $5.43 3/4 to $96.81 1/4.
Revenues for the quarter rose 6 percent to $4.02 billion, from $3.79 billion.
``We're pleased with our record fourth-quarter and full-year 1999 results,'' said L.D. DeSimone, chairman and chief executive. ``Our volume growth increased during each quarter of 1999, and we enter 2000 with good momentum.''
DeSimone said 3M generated 34 percent of its 1999 sales from products new to the market within the past four years, including microflex electronic circuits used in printers and computers, performance cleaning cloths and pharmaceutical products such as CFC-free asthma inhalers.
3M said sales and profit growth were particularly strong in Asia.
``Our people did an expert job navigating through difficult challenges in Asia during 1998, and we emerged in 1999 with even stronger customer relationships and competitive positions,'' DeSimone said.
For the full year, 3M earned $1.71 billion, or $4.21 a share, compared with $1.53 billion, or $3.74 a share, excluding restructuring in 1998. Revenues in 1999 rose to $15.66 billion, from $15.02 billion.
Including restructuring charges, 1998 fourth quarter net income was $211 million, or 52 cents a share, and full-year net income was $1.18 billion, or $2.88 a share.