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3M (NYSE: MMM), St. Paul, MN, reported first-quarter sales of $7.3 billion, up 15.2 percent year-on-year, including an 8.9 percent increase in organic sales.
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First-quarter profit was $1.1 billion.
The company estimates that combined direct and indirect business disruption resulting from events in Japan reduced first-quarter sales growth by 70 basis points and operating margins by 40 basis points.
Sales increased at a double-digit rate in all geographic regions, with Asia Pacific up 21.0 percent, Latin America/Canada up 19.5 percent, Europe up 13.1 percent and the U.S. up 10.2 percent. All six of 3M’s business segments expanded sales in the quarter, with particular strength in Electro and Communications at 20.5 percent, Industrial and Transportation at 20.3 percent and Safety, Security and Protection Services at 14.4 percent.
Sales in emerging markets grew by 24 percent in the first quarter and now comprise 34 percent of 3M’s worldwide sales. Sales grew by 30 percent in India, 27 percent in China/Hong Kong and 25 percent in Brazil.
“We are off to a tremendous start in 2011 with first-quarter organic sales growth of 9 percent – or 10.5 percent adjusting for Japan and H1N1 impacts,” said George W. Buckley, 3M president and CEO. “New product flow is accelerating, boosted by higher investment in laboratory, sales and marketing and manufacturing capacity. Sales are growing faster as a result and our businesses are growing most everywhere in the world.” The company noted that its new product vitality index, which measures the percent of sales attributed to new products, is projected to rise again in 2011, on top of a record 31 percent in 2010.