3M Sales Up 8.2% YTD

Diversified manufacturer 3M, St. Paul, MN, reported sales for the third quarter 2008 of $6.6 billion, up 6.2% from third quarter 2007. Profit was $991 million, versus $960 million in the prior-year period.
 
The company posted double-digit sales growth in its three largest businesses: Safety, Security and Protection Services, Health Care and Industrial and Transportation.
 
Segment trends were similar to the first half of 2008 with continued growth across the company's international operations. 3M sales in Latin America increased 26% over last year, while Europe and Canada achieved 8% and 9% sales growth, respectively. Sales in Asia Pacific were down 1%, or up 13% excluding the impact of the transition underway in the company's optical film business.
 
For the first nine months of 2008, sales increased 8.2% to $19.8 billion, driven by a 3.9% increase in local-currency sales, including acquisitions. Year-to-date earnings were up 10.6% over 2007.
 
Industrial and Transportation
Sales increased 10% to $2 billion. Sales up 7.1% in local currencies, including 4.2% from acquisitions. Broad-based sales performance with double-digit growth in adhesives and tapes, automotive aftermarket, abrasives and personal care divisions. Double-digit sales growth in Asia Pacific and Latin America. Profits up 8% to $407 million.
 
Health Care
Sales rose 10.7% to $1.1 billion. Local-currency sales growth of 9.2% including 2.7% from acquisitions. Growth in the core, with sales up more than 15% in oral care and 13% in medical supplies. Positive sales growth in all major geographies, including double-digit growth in Asia Pacific and Latin America.
 
Safety, Security and Protection Services
Sales of $974 million, up 27.1%. Sales growth in local currency of 27.7%, including 18.7% from acquisitions, primarily Aearo Technologies, Inc. Broad-based sales growth led by personal protection, protective window films and cleaning solutions for commercial buildings. Double-digit sales growth in all geographic regions led by the U.S. and Asia Pacific. Profits up 41.6% to $222 million.
 
Consumer and Office
Sales up 5.2% to $946 million. Local-currency sales increased 3.7%, with 0.5% from acquisitions.  Positive sales growth in all businesses led by the home care and do-it-yourself businesses. Positive sales growth across all major geographic regions, led by Latin America and Asia Pacific; sales growth of 1.9% in the U.S. despite continued challenges in the retail industry. Profits increased 12.7% to $217 million.
 
Display and Graphics
Sales declined 16.1% to $853 million, with local-currency sales down 17.7%. Sales rose 1.8% excluding Optical Systems. Positive sales growth in Traffic Safety Systems and Commercial Graphics. Double-digit sales growth in Latin America. Optical Systems sales and profits down 34% and 60%, respectively. Sequential sales for this business increased 5.3%.
 
Electro and Communications
Sales increased 2.6% to $728 million. Local-currency sales were up slightly. Sales growth was strongest in Asia Pacific and Latin America. Double-digit sales growth in two businesses: Electrical Markets and Electronics Markets Materials. Communications Markets and Electronics Solutions businesses remain soft.