Diversified Manufacturer 3M Sales Down 15.1% in 2Q

Diversified manufacturer 3M, St. Paul, MN, reported second-quarter sales were $5.7 billion, a decline of 15.1% from the same period a year ago. Profit declined 17.1% to $783 million.

Local-currency sales including acquisitions decreased 9.4%, currency translation effects reduced sales by 5.5% and divestitures reduced sales by 0.2%.

Year-to-date, sales were $10.8 billion, down 18.1%. Profit decreased 32.7% to $1.3 billion.

Industrial and Transportation
Second-quarter sales for the Industrial and Transportation segment were $1.7 billion, down 15.3% year-on-year in local currency. Acquisitions contributed a 3.3% benefit; currency impacts reduced sales by 5.4%.

Sales improved by 9.2% when compared to first quarter of 2009.

Display and Graphics
Display and Graphics sales of $808 million were down 1.4% year-on-year in local currency, including 4.2% from acquisitions.

Optical film sales increased 4% year-on-year, driven by new products for eco-friendly LCD displays along with overall improvement in LCD market volumes; significant factory productivity, yield improvements and fixed asset leverage helped to fund aggressive price reductions.

Safety, Security and Protection Services
Sales in Safety, Security and Protection services were down 10.6% to $794 million. Currency translation impacts reduced sales by 7.4%.

Respiratory protection products saw significant sales increases, driven by recent H1N1 outbreak, which helped offset sales declines in the industrial channel.

Profits decreased 13.2% to $181 million.

Health Care
Sales of $1.1 billion were up 2.2% year-on-year in local currency, including 1.4% from acquisitions; currency impacts reduced sales by 7.1%.

Medical supplies, food safety and health information systems experienced positive local-currency growth; oral care sales were flat.

Consumer and Office
Consumer and Office segment sales were down 2.9% from second quarter 2008 to$866 million. Acquisitions contributed 1.4 percentage points of growth; currency impacts reduced sales by 4.9%. Profit was up 11% to $208 million.

Electro and Communications
Sales of $551 million in the Electro and Communications segment were down 23.8% year-on-year in local currency. Sales heavily impacted by continued weak market conditions in telecom and commercial construction.