Chicago, IL, April 21--Industrial conglomerate 3M Co. said on Monday its quarterly earnings rose over 11 percent, helped by strong sales in its new displays and graphics division and by cost controls.
The company, whose products range from Post-it Notes and Scotch tape to Scotchgard, reported net income rose to $502 million, or $1.27 a share, compared with $452 million, or $1.14 a share, a year ago. Sales increased 11 percent to $4.32 billion, with unit volume up 5.4 percent.
Before items in both years, the St. Paul, Minnesota company had income of $560 million, or $1.42 a share, compared with $487 million, or $1.23 a share, a year ago.
Results were at the upper end of 3M's Jan. 21 estimate that it would earn $1.38 to $1.43 a share before items in the first quarter. Analysts on average have been expecting $1.40 a share, according to market tracker Thomson First Call.
3M shares, a component of the Dow Jones Industrial Average, were up 51 cents at $130.50 in early trading on the New York Stock Exchange.
The company also reaffirmed its estimates for the second quarter and full year. 3M said it expects second-quarter earnings of $1.47 to $1.53 a share, up from $1.36 a year ago. It also estimated 2003 earnings before items of $5.80 to $6.00 a share before items, with net income of $5.65 to $5.85 a share.
Analysts' second-quarter estimates range from $1.45 to $1.54 a share, with a First Call average of $1.50 a share. For the year, estimates range from $5.80 to $6.10, with an average of $5.93 a share, according to First Call.
Selling prices in the quarter were unchanged, 3M said, with the U.S. down 0.4 percent and international up 0.4 percent. Weakness in the U.S. dollar increased sales by 5.6 percent.
Total U.S. sales rose 1.0 percent to $1.8 billion, with acquisitions adding 1.8 percent. International sales jumped 8.7 percent, primarily due to the weakness of the U.S. dollar and acquisitions.
Asia Pacific was again the strongest area, with volume up 19 percent. Japan, 3M's largest market outside the U.S., gained 8 percent while the rest of Asia rose 30 percent. Latin American volume increased 17.5 percent while Europe was down 1.1 percent.
