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%

*Long-term debt numbers include short-term/current portion of long-term debt.

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%

*Capex numbers include the effect of cash acquisitions -- $1.2 billion in the most recently ended period and $73 million in the period prior.

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.