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3M Company (MMM) reported third-quarter earnings of $1.35 per share on sales of $6.2 billion, with operating income margins of 23.9%. This was higher than the Zacks Consensus Estimate of $1.17 per share. Sales and per-share earnings declined 5.6% and 4.3% year-on-year, respectively.

3M's Display and Graphics and Health Care businesses each delivered double-digit year-on-year profit improvements. All business segments and all geographic regions reported sequential sales improvements.

For Consumer and Office, sales were $923 million, down 4.8% year-on-year in local currency, which includes 2.8 percentage points from acquisitions; currency impacts reduced sales by 1.8%. For Display & Graphics, sales were $896 million, up 5.5% year-on-year in local currency, including 2.5% points of growth from acquisitions; currency impacts reduced sales by 1%; sales rose 10.8% sequentially. In Safety, Security and Protection services, sales were $864 million, down 2% year-on-year in local currency; currency translation impacts reduced sales by 4.1%. Finally, in Electro and Communications, sales were $617 million, down 15.3% year-on-year in local currency; currency translation reduced sales by 0.9%.

Free cash flow for the third quarter was $1.6 billion, up 97% year-on-year.

Total cash and equivalents stand at $3.9 billion with long-term debt at $5.2 billion and shareowner's equity at $12.9 billion.

For the second consecutive quarter, the company raised its 2009 earnings expectations. 3M now expects 2009 full-year earnings to be in the range of $4.50 to $4.55 per share, versus a prior range of $4.10 to $4.30. The current Zacks Consensus Estimate stands at $4.24 per share.

3M Company, together with its subsidiaries, operates as a diversified technology company worldwide. It operates in six segments: Industrial and Transportation; Health Care; Safety, Security and Protection Services; Consumer and Office; Display and Graphics; and Electro and Communications. The company was formerly known as Minnesota Mining and Manufacturing Company. 3M Company was founded in 1902 and is based in St. Paul, MN.

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