ST. PAUL, Minn. – 3M has reported record fourth quarter sales of $7.1 billion, up 5.7 percent year-on-year. Earnings were $1.35 per share, an increase of 5.5 percent versus the fourth quarter of 2010. The company generated $1.2 billion in free cash flow during the quarter, equal to 128 percent of net income.
 
Full year 2011 earnings were $5.96 per share, an increase of 5.9 percent, operating margins were 20.9 percent and return on invested capital was 19.9 percent.
 
“2011 was a successful year for 3M, with record sales and earnings per share,” said George Buckley, 3M chairman, president and CEO. “We were resilient enough to achieve these results in the face of deteriorating demand in both Western Europe and consumer electronics. Our commitment to the future continued, with investments of $1.6 billion in research and development and $1.4 billion in capital expenditures during the year, aimed primarily at faster growing markets. Our 2011 results demonstrate the underlying strength of 3M’s business model, as we once again generated double-digit top-line growth and premium return on capital. My thanks to 3Mers everywhere for another outstanding year.”
 
Buckley continued, “Looking ahead, we believe that slower growth will persist into the first half of 2012, so we will increase attention to the bottom line in the near term. We know that in uncertain times, it is even more important that we innovate and differentiate ourselves, therefore we will preserve key investments in R&D, sales and manufacturing to achieve accelerated growth.”
 
3M affirmed its 2012 full-year performance expectations. The company expects earnings to be in the range of $6.25 to $6.50 per share with organic sales volume growth of 2 to 5 percent. Operating income margins are expected to be between 21 and 22.5 percent for the year.