3M Posts It: Fool by Numbers (MMM)

3M Posts It: Fool by Numbers

By Motley Fool Contributors | More Articles
April 27, 2007 | Comments (0)

On April 26, Motley Fool Inside Value pick 3M (NYSE: MMM ) released first-quarter earnings for the period ended March 31.

Organic revenues rose 7.6% internationally, versus only 2.6% at home.
EPS from continuing operations rose 14.3%, thanks to share buybacks and a 9.9% jump in continuing operating income.
Management reiterated 2007 EPS guidance of $5.20 to $5.45, which includes a gain on the sale of the company's pharmaceuticals business of $0.60 to $0.70.
3M is oh-so-popular in the Motley Fool CAPS community, sporting a five-star rating. Fellow Inside Value pick Wal-Mart (NYSE: WMT ) , on the other hand, only sports a two-star rating.

(Figures in millions, except per-share data.)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$5,937.0	$5,595.0	6.1%
Net Profit*	$946.0	$860.6	9.9%
EPS*	$1.28	$1.12	14.3%
Diluted Shares	741.3	768.6	(3.6%)

*Based on continuing operations.

Get back to basics with the income statement.

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross Margin	49.1%	51.4%	(2.3)
Operating Margin**	22.2%	24.5%	(2.3)
Net Margin**	15.9%	15.4%	0.6

*Expressed in percentage points.
**Based on continuing operations.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$2,286.0	$1,296.0	76.4%
Accounts Rec.	$3,444.0	$3,105.0	10.9%
Inventory	$2,714.0	$2,379.0	14.1%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$1,441.0	$1,342.0	7.4%
Long-Term Debt	$1,771.0	$1,291.0	37.2%

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	$580.0	$618.0	(6.1%)
Capital Expenditures	$304.0	$190.0	60.0%
Free Cash Flow	$276.0	$428.0	(35.5%)

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

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