ST. PAUL, MN -- 3M announced first-quarter sales of $5.1 billion, down 21.3% year-over-year. Net income was $518 million, or $0.74 per share, down 48.2% compared to first quarter 2008.

“As expected, the global economic slowdown dramatically affected our businesses in the first quarter,” said George W. Buckley, 3M chairman, president and CEO. “Substantial end-market declines and continued inventory takedowns in major industries, including automotive, consumer electronics and general industrial manufacturing… In 2009, we will enhance our balance sheet by improving our free cash flow while still maintaining a significant investment in R&D. Our strategy will strengthen the company and position us for even greater success when global economies recover.”

3M has cut its outlook, now expecting 2009 organic sales volume to decline between 11% and 15%. The previous assumption called for a decline of 5% to 9%. 3M expects 2009 full-year earnings to be in the range of $3.90 to $4.30 per share, down from a previous range of $4.30 to $4.70.

In the Electro and Communications business segment, sales declined 34.8% to $480 million. Local-currency sales was down 29.8% due to significant double-digit declines in the electronics, semiconductor, telecommunications and appliance markets. Operating profits for the segment were down 84% to $24 million.

SAN JOSE, CA – Weak product demand continues to affect Sanmina-SCI Corp.’s financials. The company reported a second-quarter loss of $37.5 million, compared to $39.9 million last year.
 

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