With several corporate initiatives gaining momentum, W. James McNerney, Jr., chairman of the board and chief executive officer, told investors today that 3M is poised for solid long-term growth. McNerney made the remarks at a meeting of institutional investors and financial analysts in St. Paul.
“3M's growth capability has never been stronger,” McNerney said. “We're pursuing multiple avenues for growth, including accelerated organic growth, emphasis on faster-growing markets, expanding into adjacent market segments and extending our international reach.”
McNerney said the five corporate initiatives – Six Sigma, 3M Acceleration, eProductivity, Global Sourcing Effectiveness and Indirect Cost Control – are becoming “fully embedded into the fabric of the company.” He said, “The initiatives continue to gain traction, delivering growth now and yielding multi-year benefits. With our improved operational efficiency, we now expect $400 million in net annual savings through 2004. In addition, we're reinvigorating our corporate laboratory and strengthening R&D in support of each major business.”
Pat Campbell, senior vice president and chief financial officer, affirmed 3M's 2004 earnings outlook of 12 to 14 percent earnings per share growth. Campbell added that 3M contributed approximately $600 million to the company's U.S. pension fund in the third quarter. “Our strong balance sheet and cash flow provide us the flexibility to invest in 3M's future growth, while also contributing to our pension plan” Campbell said.
