St. Paul, MN, Oct. 21--3M Co., whose products range from Post-It notes and Scotchgard to industrial adhesives and asthma inhalers, said its third quarter net income rose to $545 million, or $1.38 a share, from $394 million, or 99 cents a share, a year ago.
Sales increased 4.6% to $4.14 billion from $3.96 billion.
Results were in line with 3M''''''''s July prediction that it would earn $1.35 to $1.40 a share. Analysts'''''''' estimates had ranged from $1.35 to $1.45 a share, with an average forecast of $1.38 a share, according to market tracker Thomson First Call.
The company1s international sales were strong, driven by currency translation and strong sales in the Asia-Pacific Rim area. Unit sales volume surged 19.3% in the Asia Pacific Rim area during the third quarter, driven by a 10.4% increase in Japan and a 27.9% increase in the rest of the region.
Volumes declined 0.5% in Latin America and 2.5% in Europe.
In the U.S., sales inched up 0.1% with higher unit volume almost entirely offset by lower selling prices. Overall sales unit volume increased 3.8%, with four of the company''''''''s six businesses reporting gains. Transportation, graphics and safety increased 9.8%; health care, 9.0%; industrial, 2.9%; and consumer and office, 0.8%.
Volumes declined 4.7% in specialty material and 5.8% in electro and communications.
3M said it sees no signs of improving global economic conditions. It estimated 2002 earnings of $4.95 to $5.00 a share, or $5.22 to $5.27 before items, near the high end of its previous guidance.
3M forecast fourth quarter earnings between $1.25 to $1.30, up from 98 cents. Analysts have been expecting $1.21 to $1.35 a share, with an average First Call forecast of $1.29 a share.
The company said its decision to stop writing off goodwill, the difference between the price paid to acquire a company and the fair value of its assets, boosted earnings by three cents a share in the quarter.
