St. Paul, MN, Aug. 12--3M, the maker of Post-It notes and fiber optic connectors, on Monday said it set a 2-for-1 split of its common stock, spurring its high-flying shares to a new all-time high.
The conglomerate also adjusted its third-quarter earnings-per-share outlook to account for the split, saying it was confident it could continue to deliver "solid results" despite a cautious view of global markets.
It was 3M's first stock split in nine years. Other splits occurred in 1987 and 1972.
At 23.3 times estimated 2003 earnings, 3M's P/E ratio is the eighth highest among the 30 components of the Dow Jones Industrial Average.
Its stock is the most expensive in the Dow. At Monday's close of $141.90, it is more than $50 above the next highest-priced Dow stock, Procter & Gamble Co. which closed at $89.12.
St. Paul, Minnesota-based 3M said the split will be in the form of a dividend to be distributed Sept. 29 to shareholders of record as of the close of business on Sept. 22.
The company said its third-quarter earnings per share, to be reported on a split-adjusted basis on Oct. 20, will range from 78 cents to 80 cents, half its earlier projection of $1.56 to $1.60 per share. For the full year, it now expects earnings of between $2.88 and $3.02 per share, compared with the prior range of $5.75 to $5.90 per share.
Excluding special items, 2003 earnings were projected at $2.95 to $3.02 per share, compared with $5.90 to $6.05 per share before the split.
The manufacturer also said it declared a quarterly cash dividend of 66 cents per share on a pre-split basis, payable Sept. 12 to shareholders of record on Aug. 12.
