This summary is based on the first quarter fiscal 2008 earnings call conducted by 3M Co. (MMM: chart) on April 24, 2008.

Management:

Head of IR: Matt Ginter
Chairman, President and CEO: George W. Buckley
Sr. VP and CFO: Patrick D. Campbell

Key Investors Issues

- EPS were $1.38 per share compared to $1.85 per share last year.
- Net income fell to $988 million, from $1.4 billion a year earlier.
- Sales rose 8.9 % to $6.5 billion.

First Quarter Highlights

Sales were $6.5 billion, an increase of 8.9% over last year.

Net income was $988 million, or $1.38 per share, versus $1.4 billion, or $1.85 per share in the first quarter of 2007. Included in first quarter 2007 results are net gains of $422 million, or 57 cents per share, from the sale of the company’s branded pharmaceuticals business in Europe, net of other various special items. Excluding the impact of these items, first quarter 2008 earnings per share increased 7.8%.

- Two-thirds of sales came from international subsidiaries, and growth in many developing economies enabled the company to overcome economic challenges in the U.S. and to fund investments to secure the future of enduring franchises.
- Four of the company’s six global businesses achieved double-digit profit growth, namely Industrial and Transportation, Health Care, Safety Security and Protection Services, and Electro and Communications, which more than offset profit declines in 3M’s Consumer and Office and Display and Graphics businesses.

Local-currency sales, including the impact of acquisitions, were up 3% from 2007.

- Currency impacts added 6.1% to sales.
- Operating income increased 3.6% to $1.5 billion, excluding special items in the first quarter of 2007.
- The company returned $863 million to shareholders through cash dividends and share repurchases.

Worldwide sales totaled $6.5 billion, an increase over last year of 8.9%.

- Local-currency sales including acquisitions increased 3%, and foreign exchange impacts added 6 points to growth.
- Local-currency sales including acquisitions increased 9.6% in Industrial and Transportation, 6.4% in Safety, Security and Protection Services, 5.9% in Health Care and 3.3% in Electro and Communications, but declined by 9.1% in Display and Graphics and 2.5% in Consumer and Office.

Industrial and Transportation sales increased 17.1% to $2.1 billion.

- Sales were up 9.6% in local currencies, including 4% from acquisitions.
- There was broad-based sales performance with double-digit sales growth in virtually all product divisions and in all major geographies.

- 3M Clean Sanding Systems—including a new line of professional power tools with Filtrete technology—drove abrasives growth worldwide.
- Automotive Aftermarket abrasives for professional auto body shops continue to outperform in a competitive market.
- There was superior operational performance, with profits up 15.2% to $472 million. Operating margins were 22.6%.

Health Care sales rose 12% to $1.1 billion.

- Local-currency sales growth was 5.9% including 0.8% from acquisitions.
- There was the strongest sales growth in medical, dental and orthodontics businesses.
- There was positive sales growth in all major geographies, led by Europe.

- Dental business saw strong interest in new Filtek restorative system.
- Medical division recently launched new Tegaderm infection prevention product for IV sites.
- Operating income increased 19.6% to $321 million, with margins of nearly 30%, excluding special items in the first quarter of 2007.

Display and Graphics sales declined 5.9% to $871 million, with local-currency sales down 9.1%.