3M results skewed by discontinued operations

17 Jun 2002

(Reuter) Minnesota Mining & Manufacturing Co., which is spinning off its data storage and imaging businesses and closing its audio and video tape business, is reporting gains in profits from continuing operations for the final quarter of 1995. After accounting for discontinued operations, however, the company reported a net loss for the fourth quarter.

In November 3M said it would spin off under-performing businesses and retain its life sciences and industrial and consumer operations in a restructuring that will cost 5,000 jobs and $600 million. The units being kept were classified in Monday's financial report as continuing operations.Earnings from continuing operations -- before a one-time, pre-tax restructuring charge of $79 million -- was $318 million, or 75 cents a share, in the fourth quarter -- up 8.2 percent from $294 million, or 70 cents a share, in the year-earlier quarter. Sales from continuing operations for the quarter totaled $3.3 billion, up 7 percent from $3.09 billion a year ago.

After accounting for discontinued operations, 3M had a net loss for the quarter of $97 million, or 24 cents a share, compared with a profit of $332 million, or 79 cents a share in the year ago period. In the 1995 quarter 3M had a loss from discontinued operations of $363 million, or 87 cents a share.