3M 2004 Annual Report Download - page 22

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20 innovate, grow, deliver
FINANCIAL SUMMARY
(Dollars in millions, except per share amounts)
2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
Operating Results
Net sales $20,011 $18,232 $16,332 $16,054 $16,699 $15,723 $15,094 $15,133 $14,295 $13,516 $12,199
Operating income 4,578 3,713 3,046 2,273 3,058 2,956 2,039 2,675 2,491 2,221 2,095
Income from continuing
operations 2,990 2,403 1,974 1,430 1,857 1,763 1,213 2,121 1,516 1,306 1,207
Per share – basic 3.83 3.07 2.53 1.81 2.35 2.19 1.50 2.57 1.81 1.56 1.43
Per share – diluted 3.75 3.02 2.50 1.79 2.32 2.17 1.49 2.53 1.80 1.55 1.42
Net income 2,990 2,403 1,974 1,430 1,782 1,763 1,175 2,121 1,526 976 1,322
Per share – basic 3.83 3.07 2.53 1.81 2.25 2.19 1.46 2.57 1.82 1.16 1.56
Per share – diluted 3.75 3.02 2.50 1.79 2.23 2.17 1.44 2.53 1.81 1.16 1.55
Financial Ratios
Percent of sales
Cost of sales 49.8% 50.9% 52.0% 54.5% 52.6% 51.7% 53.2% 52.0% 52.0% 52.6% 51.2%
Selling, general and
administrative expenses 21.6 22.2 22.8 25.1 23.6 23.5 23.5 23.7 24.0 23.9 24.8
Research, development
and related expenses 5.7 6.0 6.5 6.8 6.6 6.7 6.8 6.6 6.6 6.5 6.8
Other expense (income) –0.5 – (0.6) (1.1) (0.7) 3.0 – – 0.6 –
Operating income 22.9 20.4 18.7 14.2 18.3 18.8 13.5 17.7 17.4 16.4 17.2
Income from continuing
operations 14.9 13.2 12.1 8.9 11.1 11.2 8.0 14.0 10.6 9.7 9.9
Total debt to total capital
(total capital = debt plus equity) 21 27 36 32 30 29 34 30 24 23 22
Additional Information
Cash dividends paid $ 1,125 $ 1,034 $ 968 $ 948 $ 918 $ 901 $ 887 $ 876 $ 803 $ 790 $ 744
Per share 1.44 1.32 1.24 1.20 1.16 1.12 1.10 1.06 .96 .94 .88
Stock price at year-end 82.07 85.03 61.65 59.11 60.25 48.94 35.56 41.03 41.50 33.19 26.69
Total assets 20,708 17,600 15,329 14,606 14,522 13,896 14,153 13,238 13,364 14,183 13,068
Long-term debt (excluding
current portion) 727 1,735 2,140 1,520 971 1,480 1,614 1,015 851 1,203 1,031
Capital expenditures 937 677 763 980 1,115 1,050 1,453 1,406 1,109 1,088 972
Depreciation and amortization 999 964 954 1,089 1,025 900 866 870 883 859 872
Research, development
and related expenses 1,143 1,102 1,070 1,084 1,101 1,056 1,028 1,002 947 883 828
Number of employees
at year-end* 67,071 67,072 68,774 71,669 75,026 70,549 73,564 75,639 74,289 85,313 85,296
Average shares outstanding
– basic (in millions) 780.5 782.8 780.0 788.6 791.4 803.9 806.5 825.4 836.4 839.6 845.9
Average shares outstanding
– diluted (in millions) 796.5 795.3 791.0 799.9 799.8 812.9 816.0 837.4 844.3 844.9 850.6
Cumulative effect of accounting changes and extraordinary items impact net income only, and are not included as part of income from continuing operations.
2003 results include charges of $93 million ($58 million after tax), or 7 cents per diluted share, related to an adverse court ruling associated with a lawsuit filed by LePage’s Inc.
2002 results include net losses of $202 million ($108 million after tax and minority interest), or 13 cents per diluted share, related to charges in connection with 3M’s restructuring plan.
2001 results include net losses of $504 million ($312 million after tax and minority interest), or 39 cents per diluted share, principally related to charges in connection with 3M’s restructuring plan, acquisition-
related charges, a reversal of a 1999 litigation accrual, and a net gain related to the sale of available-for-sale equity securities, partially offset by the write-down of available-for-sale equity securities.
2000 results include net losses of $23 million ($15 million after tax), or 2 cents per diluted share, and a cumulative effect of accounting change related to revenue recognition that reduced
net income by $75 million, or 9 cents per diluted share.
1999 results include net losses of $100 million ($52 million after tax), or 7 cents per diluted share, related to a $73 million litigation charge; gains on divestitures of $147 million (net of an investment
valuation adjustment); and a $26 million gain related to a change in estimate of the 1998 restructuring liability.
1998 results include restructuring charges of $493 million ($313 million after tax), or 38 cents per diluted share, and an extraordinary loss on early extinguishment of debt that reduced net income by
$38 million, or 5 cents per diluted share.
1997 results include a gain of $803 million ($495 million after tax), or 59 cents per diluted share, on the sale of National Advertising Company.
* Includes both continuing and discontinued operations; decrease in 1996 primarily reflects Imation Corp. spinoff.