3M Company reported a net income of $502 million, or $1.27 per share, on sales of $4.32 billion in the first quarter of 2003, compared to $452 million, or $1.14 per share, on sales of $3.89 billion the first quarter of 2002.
Net income included $58 million in aftertax charges related to an adverse court ruling associated with a lawsuit filed against 3M in 1997 by LePage's Inc.
Global sales increased in 3M's Display and Graphics, Safety, Security and Protection Services, Health Care, Industrial, Consumer and Office, and Transportation sectors. However, sales declined 5.1%, to $47 million from $52 million a year ago, in 3M's Electronics and Communications sector.
Sales in the United States totaled $1.8 billion, up 1% from the same quarter of 2002. Sales outside the United States totaled $2.52 billion, up 8.7% from a year ago on the strength of a 19% sales increase in the Asia Pacific region.
"As everyone knows, geopolitical and economic conditions remain highly uncertain," said James McNerney Jr., chairman and chief executive of the Minneapolis materials and components supplier, in a statement.
3M also reaffirmed its 2003 earnings outlook. For the year, the company expects earnings to range from $5.65 to $5.85 per share. Second-quarter earnings are projected to range from $1.47 to $1.53 per share.