3M today announced that it has completed its acquisition, through Sumitomo 3M Ltd., of Sumitomo Electric Industries Ltd.’s 25 percent interest in Sumitomo 3M Ltd. for 90 billion Japanese Yen (approximately $865 million at current exchange rates). 3M is now the sole owner and the business will be known as 3M Japan Ltd.
Sumitomo 3M Ltd. was established in 1961 as a joint venture between 3M, Sumitomo Electric Industries Ltd. and NEC Corp. In 2003, 3M acquired NEC’s 25 percent stake, which increased 3M’s interest to 75 percent.
On a GAAP-reported basis, 3M estimates the acquisition will add approximately $0.08 per share to earnings during the first 12 months following closing.
Forward-Looking Statements
This news release contains
forward-looking information about 3M's financial results and estimates
and business prospects that involve substantial risks and uncertainties.
You can identify these statements by the use of words such as
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," "will," "target," "forecast" and other words and terms of
similar meaning in connection with any discussion of future operating or
financial performance or business plans or prospects. Among the factors
that could cause actual results to differ materially are the following:
(1) worldwide economic and capital markets conditions and other factors
beyond 3M's control, including natural and other disasters affecting the
operations of 3M or its customers and suppliers; (2) 3M's credit ratings
and its cost of capital; (3) competitive conditions and customer
preferences; (4) foreign currency exchange rates and fluctuations in
those rates; (5) the timing and market acceptance of new product
offerings; (6) the availability and cost of purchased components,
compounds, raw materials and energy (including oil and natural gas and
their derivatives) due to shortages, increased demand or supply
interruptions (including those caused by natural and other disasters and
other events); (7) the impact of acquisitions, strategic alliances,
divestitures, and other unusual events resulting from portfolio
management actions and other evolving business strategies, and possible
organizational restructuring; (8) generating fewer productivity
improvements than estimated; (9) unanticipated problems or delays with
the phased implementation of a global enterprise resource planning (ERP)
system, or security breaches and other disruptions to 3M's information
technology infrastructure; and (10) legal proceedings, including
significant developments that could occur in the legal and regulatory
proceedings described in 3M's Annual Report on Form 10-K for the year
ended December 31, 2013, and its subsequent quarterly reports on Form
10-Q (the “Reports”). Changes in such assumptions or factors could
produce significantly different results. A further description of these
factors is located in the Reports under “Cautionary Note Concerning
Factors That May Affect Future Results” and “Risk Factors” in Part I,
Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item
1A (Quarterly Report). The information contained in this news release is
as of the date indicated. 3M assumes no obligation to update any
forward-looking statements contained in this news release as a result of
new information or future events or developments.
About 3M
3M captures the spark of new ideas and transforms
them into thousands of ingenious products. Our culture of creative
collaboration inspires a never-ending stream of powerful technologies
that make life better. 3M is the innovation company that never stops
inventing. With $31 billion in sales, 3M employs 89,000 people worldwide
and has operations in more than 70 countries. For more information,
visit www.3M.com
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Contacts:
Donna Fleming Runyon, 3M
651-736-7646
or
Maki
Okura, 3M Japan Ltd.
81 3 6409 3517
or
Investor
Contacts:
Matt Ginter
651-733-8206
or
Bruce
Jermeland
651-733-1807