3M Beats Expectations, Hits 52-Week High (MMM)

3M MMM beat EPS expectations today by $0.05, while revenues increased 15.2% year-over-year to $7.31B versus the Street's $6.95B estimate. The company reported strong earnings all-around today. Sales on its global portfolio of products and services came in very strong. All six of the co's business segments posted operating margins above 21% in the quarter. Pre-market trading sent shares of the company to a 52-week high. “We are off to a tremendous start in 2011 with first-quarter organic sales growth of 9 percent – or 10.5 percent adjusting for Japan and H1N1 impacts,” said George W. Buckley, 3M chairman, president and chief executive officer. “New product flow is accelerating, boosted by higher investment in laboratory, sales and marketing and manufacturing capacity. Sales are growing faster as a result and our businesses are growing most everywhere in the world.” Sales increased at a double-digit rate in all geographic regions, with Asia Pacific up 21.0%, Latin America/Canada up 19.5%, Europe up 13.1% and the United States up 10.2%. All six of 3M's business segments expanded sales in the quarter, with particular strength in Electro and Communications at 20.5%, Industrial and Transportation at 20.3% and Safety, Security and Protection Services at 14.4%. Sales in emerging markets grew by 24% in the first quarter and now comprise 34% of 3M's worldwide sales. Sales grew by 30% in India, 27% in China/Hong Kong and 25% in Brazil. 3M raised guidance for FY 2011, seeing an EPS of $6.05-6.25, excluding non-recurring items, up from a previous forecast of $5.95-6.20. The company noted that its new product vitality index, which measures the percent of sales attributed to new products, is projected to rise again in 2011, adding to a record 31% in 2010.