NEW YORK (CNN/Money) - Citing cost-cutting efforts, 3M Corp. reported a first-quarter profit Monday that rose from a year earlier and beat Wall Street estimates.

For the quarter ended March 31, 3M (MMM: down $0.39 to $124.50, Research, Estimates) reported earnings of $1.23 a share, up from $1.16 a year earlier.

Analysts had forecast a profit of $1.19 a share, according to earnings tracker First Call.

Sales for 3M, ,which makes such items as Post-it notes, Scotch tapes, and industrial and healthcare products, fell to $3.89 billion from $4.16 billion a year earlier.

"They did a terrific job on costs and they did it without taking down research and development," said Robert Ottenstein, an analyst with Morgan Stanley. He noted the company boosted first-quarter sales from fourth-quarter levels while cutting the cost of sales by $64 million.

3M, which has been working to cut costs and improve efficiency across its businesses, paid out $100 million in severance-related costs during the quarter, said Pat Campbell, chief financial officer.

From last May through March 31, 3M cut 4,500 jobs, with 1,500 more cuts planned, Campbell said.

"The focus in the organization is to define how we can do work better, not by slashing the organization. This has got to be a sustainable position," he told analysts during a conference call.

3M, formerly known as Minnesota Mining & Manufacturing, forecast second-quarter earnings-per-share at or above $1.23, up from $1.21 a share. The company said it expects 2002 earnings-per-share of $4.80 to $5.10 a share, although it continues to see a continued challenging economic environment.

"Looking ahead, although we are hopeful that the global economy will improve, our spending plans assume a continuation of the challenging economic backdrop for the remainder of the year,''Chairman and CEO W. James McNerney, Jr., said in the company's earnings statement.  

-- from staff and wire reports