On Jan. 24, 2006, Motley Fool Inside Value pick 3M (NYSE:MMM) released Q4 2005 earnings for the period ended Dec. 31, 2005.
- Net income and earnings per share were affected by stock options-related expenses for the current quarter and full year. Earnings per share net of that came in at $1.04, compared with $0.91 in the prior-year period.
- Local currency sales rose 7.3%, and currency effects negatively affected sales to the tune of 2.7%. Volume growth in sales was negative on an organic basis (down 1.4%), driven by the strength of price increases (3.2%) and the impact of acquisitions.
- Sales were driven by strong results in its Industrial and Electro & Communications units, where local currency results climbed 18.2% and 10.9%, respectively. Industrial results got a boost from the company's CUNO acquisition, which contributed 12% to sales growth.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2005 |
Q4 2004 |
% Change | |
|---|---|---|---|---|
|
Sales |
$5,325 |
$5,325 |
$5,091 |
+4.6% |
|
Net Profit |
-- |
$761 |
$720 |
+5.7% |
|
EPS |
$0.99 |
$0.99 |
$0.91 |
+8.8% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2005 |
Q4 2004 |
Change | |
|---|---|---|---|
|
Gross Margin |
50.84% |
48.67% |
+2.16% |
|
Op. Margin |
22.76% |
21.45% |
+1.31% |
|
Net Margin |
14.29% |
14.14% |
+0.15% |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2005 |
Q4 2004 |
% Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,072 |
$2,757 |
-61.1% |
|
Inventory |
$2,162 |
$1,897 |
+14.0% |
|
Accounts Rec. |
$2,838 |
$2,792 |
+1.6% |
|
Liabilities |
Q4 2005 |
Q4 2004 |
% Change |
|---|---|---|---|
|
Long-Term Debt* |
$2,381 |
$2,821 |
-15.6% |
|
Accounts Pay. |
$1,256 |
$1,168 |
+7.5% |
Cash Flow Highlights
Q4 2005 | Q4 2004 | % Change | |
|---|---|---|---|
Cash From Ops. | $4,258 | $4,282 | -0.6% |
Capital Expend.* | $2,236 | $1,010 | +121.4% |
Free Cash Flow | $2,022 | $3,272 | -38.2% |
Find out why Fools always follow the money.
Related Companies:
- General Electric (NYSE:GE)
- United Technologies (NYSE:UTX)
- Avery Dennison (NYSE:AVY)
- Johnson & Johnson (NYSE:JNJ)
- Bayer AG (NYSE:BAY)
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all of 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.
At the time of publication, Michael Olsen owned shares in 3M. Fool rules are here.
