Investor News

3M Phasing Out Some of its Specialty Materials

    ST. PAUL, Minn., May 16 /PRNewswire/ -- 3M (NYSE: MMM) today announced it
is phasing out of the perfluorooctanyl chemistry used to produce certain
repellents and surfactant products.
    The affected product lines represent about two percent of 3M's nearly $16
billion in annual sales. These include many Scotchgard(TM) products, such as
soil, oil and water repellent products; coatings used for oil and grease
resistance on paper packaging; fire-fighting foams; and specialty components
for other products. 3M said it plans to substantially phase out production by
the end of the year and will work with customers to accomplish a smooth
transition.
    "Our decision anticipates increasing attention to the appropriate use and
management of persistent materials," said Dr. Charles Reich, executive vice
president, Specialty Material Markets. "While this chemistry has been used
effectively for more than 40 years and our products are safe, our decision to
phase out production is based on our principles of responsible environmental
management.
    "We're reallocating resources to accelerate innovation in more sustainable
opportunities and technologies. This decision is not only in the public
interest, it's in the best interests of all our constituencies ... our
employees, customers, communities and investors," Reich said.
    Sophisticated testing capabilities -- some developed in only the last few
years -- show that this persistent compound, like other materials in the
environment, can be detected broadly at extremely low levels in the
environment and in people. All existing scientific knowledge indicates that
the presence of these materials at these very low levels does not pose a human
health or environmental risk.
    About 1,500 out of 3M's global work force of 71,000 employees have jobs
associated with these products. "Innovation at 3M is at an all-time high, and
there are many great opportunities for employees across the company," Reich
said.
    3M expects to meet consensus earnings estimates for the rest of 2000. This
excludes a one-time charge on the order of $200 million, that will be taken
sometime this year.
    "Our growth engines are more powerful than ever and we're confident in our
ability to continue delivering on expectations," said L.D. DeSimone, chairman
and CEO. "Many of our new technology platforms directly address the
fastest-growing segments of the new economy such as electronics,
telecommunications and flat-panel displays.
    "We expect the positive momentum in our financial performance to continue
into 2001 with earnings somewhat above current analyst estimates," DeSimone
said.
    3M is a leading manufacturer of innovative products for industrial,
consumer, transportation, safety, health care and other markets, with
operations in more than 60 countries worldwide. The company is well known for
its "Pollution Prevention Pays" environmental initiative, and its emission
reduction programs including water-based replacement of solvents in
manufacturing and replacements for ozone-depleting chlorofluorocarbons (CFCs).
    Forward-Looking Statements
    Certain portions of this news release that do not relate to historical
financial information constitute forward-looking statements. These
forward-looking statements are subject to certain risks and uncertainties.
Actual future results and trends may differ materially from historical results
or those expected depending on a variety of factors, including: (1) worldwide
economic conditions; (2) foreign exchange rates and fluctuations in those
rates; (3) the timing and acceptance of new product offerings; (4) raw
materials, including shortages and increases in the costs of key raw
materials; and (5) legal proceedings.

SOURCE  3M






 
Web site:  http://www.mmm.com/ 
 

 
CONTACT: Investors, Jon Greer, 651-736-1915, or Media, John
Cornwell, 651-733-7698, both of 3M