3M (MMM) 2001 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the 3M's second quarter 2001 earnings conference call. During the presentation, all participants will be on a listen-only mode. Afterwards, you will be invited to participate in the question and answer section. At that time, if you have a question, you will need to press #1, followed by #4 on your telephone. As a reminder, this conversation is being recorded today, Monday, July 23, 2001. Your speaker's for today are Mr. Bob Burgstahler, Chief Financial Officer of 3M. I would now like to turn the conference over to 3M. Please go ahead.

女士們先生們，謝謝你們的支持。歡迎參加 3M 2001 年第二季財報電話會議。在演示期間，所有參與者將處於僅聽模式。之後，您將被邀請參加問答部分。屆時，如果您有疑問，您需要按電話上的#1，然後按#4。提醒一下，本次對話是在今天（2001 年 7 月 23 日星期一）錄製的。今天的演講者是 3M 財務長 Bob Burgstahler 先生。我現在想將會議轉交給 3M。請繼續。

Thank you, and good morning. I am Matt Ginter with 3M Investor Relations. Before we begin, I have two housekeeping items. First, I wanted to let you know that our third quarter earnings conference call is tentatively scheduled for Monday, October 22nd 2001. We will be sending a detailed notice approximately one month in advance to the actual meeting date. Second, let me remind you that during this conference call, we will make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These statements are based on certain assumptions and expectations of future events that are subjects to risks and uncertainties. The MD&A section of our most recent form 10 Q list some of the important risk factors that could cause actual results to differ from our predictions. Now, I would like to turn the program over to our Chief Financial Officer, Bob Burgstahler. Bob?

謝謝你，早安。我是 3M 投資者關係部的 Matt Ginter。在我們開始之前，我有兩個家務用品。首先，我想讓您知道，我們的第三季財報電話會議暫定於 2001 年 10 月 22 日星期一舉行。我們將在實際會議日期之前約一個月發送詳細通知。其次，讓我提醒您，在本次電話會議期間，我們將做出某些預測性陳述，反映我們對未來業績和財務表現的當前看法和估計。這些陳述是基於對未來事件的某些假設和預期，這些假設和預期存在風險和不確定性。我們最新的 10 Q 表格的 MD&A 部分列出了一些可能導致實際結果與我們的預測不同的重要風險因素。現在，我想將該計劃移交給我們的財務長 Bob Burgstahler。鮑伯？

Good morning everyone, and welcome to our quarterly business review. With me today are our Controller, Ron Nelson and our Treasurer, Jan Yeomans. I begin this morning by reviewing our second quarter results. Then, I will discuss the progress that we are making towards reducing our overall structure, including an update on our recently announced restructuring plan. After that I will comment on our outlook for the remainder of this year. Finally, we will be happy to respond to your questions.

大家早上好，歡迎來到我們的季度業務回顧。今天和我在一起的有我們的財務長 Ron Nelson 和我們的財務主管 Jan Yeomans。今天早上我先回顧我們第二季的業績。然後，我將討論我們在縮減整體結構方面所取得的進展，包括我們最近宣布的重組計劃的最新情況。之後我將評論我們對今年剩餘時間的展望。最後，我們很樂意回答您的問題。

Our earnings for the quarter were $1.12 per share. That is down about 5% from the same quarter last year, excluding non-recurring items. This was a challenging quarter from the top line perspective. We witnessed an accelerated economic slowdown outside the United States, although US economy remained very soft. With the exception of Health Care, most of our business segments felt the impact of the global economic slowing during the second quarter. In addition, the US dollar strength versus both Euro and Asia Pacific bar currencies continued to impact our growth. To offset this economic turbulence, we are remaining vigilant on cost. We achieved our cost reduction goals in the second quarter building on the positive momentum from the first quarter. SG&A spending was $44 million lower than in the second quarter last year; that is after observing SG&A added via 4 mergers and acquisitions in the last few quarters. Currency effects reduced our earnings for the quarter by $0.7 per share for about 6%. Now let us examine our results for the quarter in greater detail beginning with sales. Worldwide, we increased volume a half a percent from the second quarter last year. Selling prices were basically unchanged. Currency translation reduced worldwide sales by 41/2 %. The dollar sales decreased 3.9% from the same quarter last year. Acquisitions provided 2 1/2 points of growth on global basis. Looking at worldwide volume growth by business segment, our Health Care business posted organic volume growth of 5%, with particularly good gains in health information systems and medical products.

我們本季的收益為每股 1.12 美元。不包括非經常性項目，這比去年同期下降了約 5%。從營收角度來看，這是一個充滿挑戰的季度。儘管美國經濟仍然非常疲軟，但我們目睹了美國以外地區的經濟加速放緩。除了醫療保健外，我們的大多數業務部門在第二季都感受到全球經濟放緩的影響。此外，美元兌歐元和亞太金條貨幣的強勢持續影響我們的成長。為了抵​​消這種經濟動盪，我們對成本保持警覺。在第一季的積極勢頭的基礎上，我們在第二季度實現了成本削減目標。 SG&A 支出比去年第二季減少 4,400 萬美元；這是在觀察過去幾季透過 4 次併購增加的 SG&A 後得出的。貨幣效應使我們本季的每股收益減少了 0.7 美元，約 6%。現在讓我們從銷售開始更詳細地檢查本季的業績。在全球範圍內，我們的銷售量比去年第二季增加了半個百分點。銷售價格基本上沒有變動。貨幣換算使全球銷售額減少了 41/2%。以美元計算的銷售額比去年同期下降了 3.9%。收購帶來了全球 2 1/2 個百分點的成長。從全球按業務部門劃分的銷售成長來看，我們的醫療保健業務的有機銷售量成長了 5%，其中健康資訊系統和醫療產品的成長尤其顯著。

Our recent Dental joint venture with ESPE added over 5 points of growth. In our Transportation, Graphics, and Safety segment, worldwide organic volume increased 3% led by our optical systems business. Our proprietary products continued to show good growth despite of some slowing in the flat panel industry. Overall growth in optical systems was further boosted by two recent acquisitions. Worldwide volumes in our Consumer and Office segments were down less than 1%. We saw good growth in stationery and office products and in the home improvement area, but overall growth was held back by softness in visual systems. In Electro and Communications, organic volumes declines 7 1/2%, impacted by the continuing slowing in electronics manufacturing, semi-conductor manufacturing, and the hi-tech parts of the telecom industry. Our Telecom Access Products division sells a variety of products, it boosts performance in existing copper wires, continues to do well, growing worldwide volume in the high single digits. Industrial markets worldwide volumes declined 61/2%. It reflected the ongoing weakness in most manufacturing segments of the economy. Now six business Specialty Materials in its sales declined 12 1/2% impacted by the product line phase-outs that we have discussed with you in the past. International markets, it showed positive volume growth despite significant slowing in most major economies. Our international unit volumes increased 3 % on a reported basis and 1% adjusted for acquisition. In the Asia Pacific area, we increased volume at 5% with unit sales up 51/2% in Japan, and 41/2% in the rest of Asia.

我們最近與 ESPE 的牙科合資企業增加了超過 5 個百分點的成長。在我們的運輸、圖形和安全部門，在我們的光學系統業務的帶動下，全球有機銷量成長了 3%。儘管平板面板行業有所放緩，但我們的專有產品仍持續呈現良好成長。最近的兩項收購進一步推動了光學系統的整體成長。我們的消費者和辦公部門的全球銷售量下降了不到 1%。我們看到文具和辦公產品以及家居裝修領域的良好成長，但整體成長受到視覺系統疲軟的阻礙。在電子和通訊領域，受電子製造、半導體製造和電信行業高科技部分持續放緩的影響，有機銷量下降了 7.5%。我們的電信接入產品部門銷售各種產品，它提高了現有銅線的性能，並持續表現良好，全球銷售量以高個位數成長。全球工業市場銷量下降 61/2%。它反映了經濟中大多數製造業領域的持續疲軟。現在，受我們過去與您討論過的產品線逐步淘汰的影響，特種材料六家業務的銷售額下降了 12.5%。在國際市場上，儘管大多數主要經濟體的經濟成長顯著放緩，但銷售量仍呈現正成長。根據報告，我們的國際單位銷售量成長了 3%，並根據收購情況進行調整後成長了 1%。在亞太地區，我們的銷量成長了 5%，日本的銷量成長了 51/2%，亞洲其他地區的銷量成長了 41/2%。

Our results were impacted by our reduction in local demand, in addition to a slowdown in export-related sales. We continued, however, to grow faster than the economies we serve in this area. In Europe, we increased volume 11/2% on a reported basis. Volumes declined 3% excluding acquisition. Second quarter slowdown in Europe was broad-based on both the geographic and product basis. Latin America volumes increased 3%. Mexico was the area's strongest performer with volume increases in excess of 15%. Volumes in Brazil increased 3%. International sales growth was once again significantly impacted by a stronger US dollar. Currency reduced our sales by 12 % in Asia Pacific area, 6 % in Europe, and 8% in Latin America. In the United States, unit sales declined 3% on a reported basis or 51/2%, excluding acquisition. Growth in the second quarter was led by our Health Care business where volumes grow over 8%, half of which was due to the ESPE joint venture in the dental area. Our Transportation, Graphics, and Safety segment also posted volume gains, driven by recent acquisitions in optical systems. US organic volumes declined in our other four business segments. Those businesses serving the more economically sensitive markets were the most effected. Now, let us examine costs. The numbers I will be quoting, exclude this year's non-recurring charges, which I will have more to say about in a few minutes. SG&A expense was down 41/2% from last year's second quarter and at 23.4 % sales and basis points better than the comparable period last year.

除了出口相關銷售放緩之外，我們的業績也受到當地需求減少的影響。然而，我們的成長速度仍然快於我們在該領域所服務的經濟體。據報道，在歐洲，我們的銷量增加了 11/2%。不包括收購在內，銷量下降了 3%。歐洲第二季的經濟放緩在地理和產品方面都有廣泛的基礎。拉丁美洲銷量成長 3%。墨西哥是該地區表現最強勁的國家，銷量增幅超過 15%。巴西的銷量成長了 3%。國際銷售成長再次受到美元走強的顯著影響。貨幣匯率使我們在亞太地區的銷售額減少了 12%，在歐洲減少了 6%，在拉丁美洲減少了 8%。在美國，單位銷售額按報告計算下降了 3%，即 51/2%（不包括收購）。第二季的成長由我們的醫療保健業務帶動，銷量成長超過 8%，其中一半歸功於牙科領域的 ESPE 合資企業。在最近光學系統收購的推動下，我們的運輸、圖形和安全部門的銷售也有所成長。我們其他四個業務部門的美國有機銷量有所下降。那些服務於經濟較為敏感市場的企業受到的影響最大。現在，讓我們檢查一下成本。我將引用的數字不包括今年的非經常性費用，幾分鐘後我將對此進行更多討論。 SG&A 費用比去年第二季下降 41/2%，銷售額和基點比去年同期好 23.4%。

We are aggressively controlling our discretionary costs. More importantly, we are beginning the process of reducing unneeded structure in every business unit and geographic area. We continue to tightly manage our cost. We maintain this discipline going forward in both good times and bad. Now, let's look at our factory performance. Cost to sales is 52.1% of sales, up 70 basis points versus the comparable period and in line with the first quarter of this year. Indirect spending in our factories is well under control with slowing worldwide market demand negatively impacted factory cost. Slightly higher energy and raw material costs also impacted the cost of sales. As expected, US natural gas prices have come down from first quarter's lofty levels and appeared to have stabilized. US energy cost reduced second quarter operating earnings by $8 million versus last year which is much less than what we saw in the first quarter in line with our expectations. Raw material costs in the second quarter were up 2% from the same quarter last year. The remainder of the year, we expect year-on-year cost reductions due to both falling prices for many of our key [feed] stock due to our continued global sourcing efforts. Our 2001 in total raw material costs will be close to flat. Looking at margins, operating income was 17.9% of sales, it is down 4/10th to the point of last year's strong second quarter performance. Non-operating expense was $4 million higher than the comparable period a year ago and our tax rate was 331/2 %. We expect our tax rate to continue at this level going forward. Our net profit margin for the quarter was 11.1% within line with last year's second quarter, but share earnings, as I mentioned decreased 5% from the same quarter last year.

我們正在積極控制可自由支配成本。更重要的是，我們正在開始減少每個業務部門和地理區域中不必要的結構。我們繼續嚴格管理成本。無論順境或逆境，我們都堅持這項紀律。現在，讓我們看看我們工廠的表現。銷售成本佔銷售額的 52.1%，比去年同期上升 70 個基點，與今年第一季持平。我們工廠的間接支出得到了很好的控制，全球市場需求放緩對工廠成本產生了負面影響。能源和原材料成本的略微上漲也影響了銷售成本。正如預期，美國天然氣價格已從第一季的高點回落，並似乎已趨於穩定。美國能源成本使第二季營業利潤比去年減少了 800 萬美元，遠低於我們第一季的預期，符合我們的預期。第二季原物料成本較去年同季上漲2%。今年剩下的時間裡，由於我們持續的全球採購努力，我們許多主要[飼料]庫存的價格下降，因此我們預計成本將比去年同期下降。 2001 年我們的原物料總成本將接近持平。從利潤率來看，營業收入佔銷售額的 17.9%，與去年第二季強勁表現相比下降了 4/10。營業外支出比去年同期增加了 400 萬美元，稅率為 331/2%。我們預計未來稅率將繼續維持在這一水平。我們本季的淨利潤率為 11.1%，與去年第二季持平，但正如我所提到的，股票收益比去年同期下降了 5%。

Currency effects reduced earnings by $0.7 or 6%. Looking out at a few balance sheet metrics, our inventory balances declined versus the first quarter by $42 million. We finished the quarter at 3.2 months of inventory; this is a slight improvement versus first quarter and versus the comparable period last year. Accounts receivable balances were flat sequentially. Day sales outstanding at 61 days, up slightly from the first quarter and from the same quarter last year. Capital spending was 266 million in the second quarter bringing our total for the first six months to 547 million. We expect 2001 capital spending to no higher than a billion dollars. Debt to total capital was 35%; this is slightly above last quarter, but in line with our expectations. So that is a brief look at the key elements of our P&L and our balance sheet for the quarter. Now, I would like to update you on our recently announced restructuring actions. At our last earnings conference, we outlined the plan to reduce employment levels by 5000 positions over the next year. We are on track towards this target. During the second quarter, employment declined by 1600 positions. Majority of the 5000 positions will be eliminated by the end of 2001, the entire plan completed by the second quarter next year. We have recorded a pretax charge in this quarter, 397 million principally related to the employees separation costs.

貨幣效應使收益減少 0.7 美元，即 6%。從一些資產負債表指標來看，我們的庫存餘額比第一季下降了 4,200 萬美元。本季結束時，我們的庫存為 3.2 個月；與第一季和去年同期相比略有改善。應收帳款餘額季持平。日銷量為 61 天，比第一季和去年同期略有上升。第二季的資本支出為 2.66 億美元，使前六個月的資本支出總額達到 5.47 億美元。我們預計2001年的資本支出不會高於10億美元。債務佔總資本的35%；這略高於上季度，但符合我們的預期。這是本季損益表和資產負債表關鍵要素的簡要介紹。現在，我想向您介紹我們最近宣布的重組行動的最新情況。在我們上次的收益會議上，我們概述了明年減少 5000 個職位的計劃。我們正朝著這個目標邁進。第二季度，就業機會減少了 1600 個。這5000個職位中的大部分將在2001年底前被淘汰，整個計劃將於明年第二季度完成。本季我們錄得稅前費用 3.97 億美元，主要與員工離職成本有關。

We expect to take additional charges over the next few quarters, mostly related to plant closing and asset disposals, which will bring the total restructuring charge to about 600 million. This is in line with what we indicated in April. We expect to save 300 million from this restructuring plan on annualized basis, 75 million of which will impact the second half of 2001 results and obviously weighted more heavily towards the fourth quarter. Looking ahead, predicting the direction and trajectory of the worldwide economy and its corresponding impact on our share of businesses will remain a challenge. In our press release, we estimated a range for 2001 earnings of 450 to 475 per share, excluding non-recurring items. The low-end scenario is based on the US economy is that it remains at current levels and assumes that international economic growth continues to decline for the rest of this year hearing and lagging the recent trajectory of the US economy. These assumptions would result in second half organic volume declines of about 4%. The top end of this range assumes some US economic recovery in the second half of the year and a leveling off of this slowdown abroad in the remainder of the year. Both scenarios assume that exchange rates will stay at quarter end levels, approximately $0.85 on the Euro and 125 on the yen. Early predictions are equally challenging in the current environment. As many of you know, historically, we have experienced some seasonal swings in our sales with the third quarter typically very strong and moderating somewhat in the fourth quarter.

我們預計未來幾季將收取額外費用，主要與工廠關閉和資產處置有關，這將使重組費用總額達到約 6 億歐元。這與我們四月表示的一致。我們預計這項重組計畫將按年計算可節省3億美元，其中7,500萬美元將影響2001年下半年的業績，並且顯然對第四季的影響更大。展望未來，預測全球經濟的方向和軌跡及其對我們業務份額的相應影響仍將是一項挑戰。在我們的新聞稿中，我們估計 2001 年每股收益為 450 至 475 美元，不包括非經常性項目。低端情境基於美國經濟維持在當前水平，並假設國際經濟成長在今年剩餘時間內繼續下降，並落後於美國經濟的近期軌跡。這些假設將導致下半年有機銷售量下降約 4%。該區間的上限假設美國經濟將在下半年出現一定程度的復甦，而國外經濟放緩將在今年剩餘時間內趨於平穩。這兩種情境均假設匯率將維持在季末水平，即歐元兌美元約為 0.85 美元，日圓兌美元約為 125 美元。在當前環境下，早期預測同樣具有挑戰性。正如你們許多人所知，從歷史上看，我們的銷售經歷了一些季節性波動，第三季通常非常強勁，第四季則有所放緩。

This pattern is less predictable during periods of economic weakness, however and given the benefits from our restructuring plans will be weighted more heavily towards the fourth quarter, pattern in this year of similar earnings for the third quarter and fourth quarter is more likely. Predicting the churn in global economic activity is nearly impossible in times like these. We don't pretend we own a crystal ball. Rather than waiting passively for a dramatic economy turnaround, we are instead focussed on making fundamental improvements to our company, managing those items we can control, reducing cost, improving cash flow, and aggressively pursuing initiatives to increase future growth. These initiatives, particularly Six Sigma are creating a positive energy within the company and when you combine them with improved cost structure, together they give us confidence that will deliver strong earnings performance once the economic environment improves. I have enjoyed speaking with you today and now will happy to take your questions.

在經濟疲軟時期，這種模式不太可預測，但考慮到我們的重組計劃帶來的好處將在第四季度得到更大的權重，今年第三季和第四季的類似獲利模式更有可能出現。在這樣的時期，預測全球經濟活動的波動幾乎是不可能的。我們不會假裝自己擁有水晶球。我們不是被動地等待經濟的戲劇性好轉，而是專注於對公司進行根本性改進，管理我們可以控制的項目，降低成本，改善現金流，並積極採取措施以促進未來成長。這些舉措，特別是「六西格瑪」正在公司內部創造積極的能量，當將它們與改進的成本結構結合起來時，它們會給我們信心，一旦經濟環境改善，我們將實現強勁的盈利業績。我今天很高興與您交談，現在很樂意回答您的問題。

Thank you. Ladies and gentlemen, if you wish to register a question for today's question and answer session, you will need to press the #1 followed by the #4 on your telephone. You will hear a three-tone prompt to acknowledge your request. If your question has been answered and you wish to withdraw your polling request, you may do so by pressing #1 followed by the #3 on your pushbutton phone. If you are on the speakerphone, please pick up your handset before entering your request. One moment please, for the first question. Once again, ladies and gentlemen, if you have a question please press the #1 followed by the #4 at this time. [Jack Kelly] with Goldman Sachs, please go ahead with your question.

謝謝。女士們先生們，如果您想登記今天問答環節的問題，您需要按電話上的#1，然後按#4。您將聽到三聲提示音以確認您的要求。如果您的問題已得到解答並且您希望撤回投票請求，您可以透過在按鈕電話上按#1，然後按#3 來執行此操作。如果您使用免持電話，請在輸入請求之前拿起聽筒。請稍等一下，回答第一個問題。女士們先生們，如果您有疑問，請再次按#1，然後按#4。 [傑克凱利]高盛，請繼續提問。

Yeah, good morning, Bob. Could you just give us a feel as for how things progressed during the quarter, the reason I say this, when you previously, you mentioned 450 to 475 and you indicated this morning to kind of hit the high end of the range, things have to improve. Once you finally got all the June results, did things turn out to be worse than you would have thought about or did things in Europe just get worse month by month during the quarter? Secondly, with regards to Industrial, I just want to make sure I heard these numbers right. You had indicated Industrial volume worldwide was off about 61/2%. From a sales standpoint, sales were off about 9.6 and I just, looking at that 300 point basis points differential, is that pricing were your acquisitions in there, could it be that you made the number higher so I guess the question is you can just give us some flavor about the dynamics in the Industrial area.

是的，早安，鮑伯。您能否讓我們了解本季的情況進展如何，我這麼說的原因是，當您之前提到 450 到 475，並且您今天早上表示要達到該範圍的高端時，事情必須提升。當您最終獲得 6 月份的所有結果後，情況是否比您想像的更糟糕，或者歐洲的情況在本季度逐月變得更糟？其次，關於工業，我只是想確保我聽到的這些數字是正確的。您曾表示全球工業產量下降了約 61/2%。從銷售的角度來看，銷售額下降了約 9.6，我只是看看這 300 個基點的差異，定價是你在那裡的收購，是否你把數字提高了，所以我想問題是你可以讓我們了解一下工業領域的動態。

Yes. Good morning, Jack. Good, thank you. I will hit the last one first. The difference between the 91/2 reported and the 61/2 we talked about is basically translation. We had over 4% translation hits in this quarter, pricing actually was up about 1%. So, the story there is translation. On the characterization of the quarter, as we indicated when we made the announcement a few weeks ago, the progression of sales was weaker outside the United States, both in Europe and Asia. US has been characterized by an up and down frame. The international business has been weaker, but what we will have to look at going forward is whether the trajectory outside the United States will continue fall or whether it will slip into the US mould which is just up and down and up and down but there is no question that so far and certainly through the end of the second quarter that trajectory is down and that is what we are preparing our sales for in terms of aggressively looking at cost out and managing the business very tightly going forward.

是的。早上好，傑克。好的謝謝你。我先打最後一個。報道的 91/2 和我們談論的 61/2 之間的區別基本上是翻譯。本季我們的翻譯點擊量超過 4%，定價實際上上漲了約 1%。所以，這個故事就有了翻譯。關於本季的特徵，正如我們幾週前宣佈時所指出的那樣，美國以外的歐洲和亞洲的銷售進展較弱。美國的特點是框架有上有下。國際業務已經疲軟，但我們未來必須關注的是，美國以外的業務軌跡是否會繼續下滑，或者是否會滑入美國的模式，上下起伏，但有毫無疑問，到目前為止，當然到第二季度末，這一軌跡正在下降，這就是我們在積極考慮成本支出和非常嚴格地管理未來業務方面正在為銷售做準備的原因。

Can you just characterize Europe in that regard, if Europe was up 6% ex-acquisitions in the first quarter, down 3% ex-acquisition in the second, I mean was June twice that number just by, can you give us some fair magnitude?

您能否描述歐洲在這方面的特點，如果歐洲第一季的除權交易成長了6%，第二季的除權交易下降了3%，我的意思是6 月是這個數字的兩倍，您能給我們一些合理的幅度嗎？ ？

No, I think June was down, maybe a couple of points more than the running rate of the earlier quarter, or may be a little more than that.

不，我認為 6 月有所下降，可能比上一季的運行率高幾個百分點，或者可能比這個數字高一點。

Thank you

謝謝

Our next question coming from [David Bedliter] with ABN Amro. Please go ahead with your question.

我們的下一個問題來自荷蘭銀行的 [David Bedliter]。請繼續你的問題。

Thank you Bob. On your inventories, how much did the inventory drawdown cost you in the quarter and do you expect to see a further reduction in your inventories in Q3 and on the customer end, what are you seeing amongst your customers in terms of their inventory levels? Thank you.

謝謝你，鮑伯。在您的庫存方面，本季的庫存減少成本是多少？您預計第三季的庫存會進一步減少嗎？在客戶方面，您對客戶的庫存水準有何看法？謝謝。

Again, thanks David. I will hit the second one first in terms that we are pretty convinced that in the US, our customers are running a very lean into the bone and we don't anticipate any room for any of our customers to take more inventory out and I think that has been our take on the characterization of the US results where we get one month up and then they wait until they have used up that stock before they re-order and so the next months is soft. Outside the United States, certainly inventories are declining rapidly. I think there is a possibility that in some areas of the world, there still could be some more inventory to come out. As far as how much did it cost us in the second quarter, I will let Ron expand on that but our [through-put] was slightly less than sales and that the sales base was declining from the first quarter and so the job that we did in controlling indirect cost in the plant, keeping our gross margin at the same level in the first quarter represented real good management in the factory, I think. Ron do you have any other color on that?

再次感謝大衛。我首先要談第二個問題，因為我們非常確信在美國，我們的客戶正在非常精益地運作，我們預計我們的任何客戶都沒有任何空間來取出更多庫存，我認為這就是我們對美國業績的描述，我們上漲了一個月，然後他們等到庫存用完才重新訂購，因此接下來的幾個月會很疲軟。在美國以外，庫存肯定正在迅速下降。我認為，在世界某些地區，仍有可能出現更多庫存。至於第二季度我們花了多少錢，我會讓羅恩進一步闡述，但我們的[吞吐量]略低於銷售額，而且銷售基礎比第一季度有所下降，因此我們的工作我認為，在控制工廠間接成本所做的努力，使我們第一季的毛利率保持在同一水平，代表了工廠真正良好的管理。羅恩，你還有其他顏色嗎？

Yeah, regards the comment, I was going to offer was that the [through-put] in our factories was similar to the first quarter type levels, so the pressure is relative to the lower volumes and through [through-puts] in first half of the year, but our indirect cost efforts have enabled us to offset a good share of that, that pressures from lower through-put.

是的，關於評論，我要說的是，我們工廠的[吞吐量]與第一季的水平相似，因此壓力與上半年較低的產量和通過[吞吐量]有關但我們的間接成本努力使我們能夠抵消其中很大一部分，即吞吐量下降帶來的壓力。

And Bob, should we be looking for lower inventory levels for you guys in Q3 as well?

鮑勃，我們是否應該在第三季為你們尋找更低的庫存水準？

We certainly expected to reduce sequentially inventory. Again, how much, obviously is going to depend somewhat on how the sales progression looks at the end of the quarter, but we are tightly managing that inventory and certainly, this is the first early stages of our efforts on Six Sigma and other things, but we have a lot of efforts going on for quick hits on inventory which we expect to be bearing fruit going forward.

我們當然預計會連續減少庫存。同樣，多少顯然在某種程度上取決於季度末的銷售進展情況，但我們正在嚴格管理庫存，當然，這是我們在 6 Sigma 和其他方面努力的第一個早期階段，但我們正在付出很多努力來快速減少庫存，我們預計這些努力將在未來取得成果。

Thank you.

謝謝。

Our next question comes from [Donald Squire] with Lehman Brothers. Please go ahead with your question.

我們的下一個問題來自雷曼兄弟的[Donald Squire]。請繼續你的問題。

Hi, good morning this is from Sam Ramraj for Don Squire from Lehman. I just have a couple of real quick questions here. Do you feel the cost cutting, the restructuring, that will be sufficient, given the current expected level of business and the second question is, I don't know if I heard it right on the call, did you say anything about outstanding shares were down year-over-year or something like that? Thank you.

大家好，早安，這是 Sam Ramraj 發給雷曼兄弟 Don Squire 的。我在這裡只有幾個真正的問題。考慮到目前的預期業務水平，你認為削減成本、重組就足夠了，第二個問題是，我不知道我在電話會議上聽到的是否正確，你是否說過有關流通股的任何事情？同比下降還是類似的情況？謝謝。

I will refer to Jan on the share question, but as far as the cost, we are just beginning the impact of our restructuring. The 1600 people that indicated would be coming out or came out in the second quarter were basically pretty much at the end and so, we will start seeing aggressive impact of people reduction on top of the continuing focus on indirect cost and we are maintaining a strong control there. At the moment, we think this is all it is prudent to do and we will keep monitoring the situation, but we think we are taking the right steps for what we see even at the lower end of the trajectory

我會提到簡關於股份問題，但就成本而言，我們剛開始產生重組的影響。表示將在第二季離職或離職的 1600 人基本上已經在年底了，因此，除了繼續關註間接成本之外，我們將開始看到人員減少的積極影響，並且我們將保持強勁的控制在那裡。目前，我們認為這就是謹慎行事，我們將繼續監測局勢，但我們認為，即使在軌蹟的低端，我們也正在針對我們所看到的情況採取正確的步驟

Okay.

好的。

Jan, do you want to comment on the shares?

Jan，您想對股票發表評論嗎？

Sure. During the first two quarters of the year, we reduced the number of shares outstanding by 0.1 million and we expect that the year will end with approximately that same reduction looking for purchases and issues to approximately offset each other during the remainder of the year.

當然。今年前兩個季度，我們減少了 10 萬股已發行股票數量，我們預計今年年底將減少約 10 萬股，以便在今年剩餘時間內購買和發行股票以大致相互抵消。

Okay. Thank you.

好的。謝謝。

Welcome.

歡迎。

Our next question today comes from [Steven Weber] with SG Cowen. Please go ahead with your question.

今天我們的下一個問題來自 [Steven Weber] 和 SG Cowen。請繼續你的問題。

Good morning, a couple of quick questions. Number one, could you give us the geographic margin results? Number two, are there any distortions either in the first or second quarter or upcoming in the latter two quarters from the number of selling days year-on-year? Third, could you give us a feeling for what the pricing was, the price gradient in the Electro and Telecom business and were there any other notable places where there was pricing?

早安，有幾個簡單的問題。第一，您能給我們地理利潤結果嗎？第二，第一季、第二季或後兩季的銷售天數年比是否有扭曲？第三，您能否讓我們了解定價是多少、電子和電信業務的價格梯度以及是否還有其他值得注意的定價領域？

Yeah, good morning Steve, I will do that. As far as selling days, I think we probably gain a day or so on the rest of the year. I think we lost one day in the second quarter. So, it is not really a factor but to the extent it is, it is slightly positive in the rest of the year. On the pricing side in the Electro, our pricing was down around 2% in the second quarter. That number, as you know, was considerably less than negative pricing impact that we have had last year. We said it was going to be decreasing sequentially and the bad side of that, I guess, is that with the volumes off, there is less automatic price decrease pixy and so that performance is stronger. Basically, the pricing was slightly negative and Transportation and Graphic with again an optical business that had some plan pricing down every quarter, but beyond that, we had modest price increases in all of our remaining segments.

是的，早上好，史蒂夫，我會這麼做的。就銷售天數而言，我認為我們可能會在今年剩餘的時間裡增加一天左右的時間。我認為我們在第二節輸了一天。因此，這並不是一個真正的因素，但就其影響而言，在今年剩餘時間裡它會稍微積極一些。在 Electro 的定價方面，我們的定價在第二季下降了約 2%。如您所知，這個數字遠小於我們去年造成的負面定價影響。我們說它會連續下降，我想，不好的一面是，隨著銷量的減少，價格自動下降的情況會減少，因此性能會更強。基本上，定價略有下降，運輸和圖形業務以及光學業務每個季度都會有一些計劃定價下降，但除此之外，我們所有剩餘細分市場的價格都略有上漲。

I will ask Ron then to just comment on the geographic margins.

然後我會請羅恩就地理邊緣發表評論。

Steve, in the second quarter, the geographic margins and costs, these exclude the non-recurring charge in the quarter. The US margin was 14.6%, a 15 % margin in Europe, Latin America, Africa had a 23.9% upper income margins, Asia Pacific was 26.9%, and Canada was at 25.4% margin in the quarter.

史蒂夫，第二季的地域利潤率和成本，不包括該季度的非經常性費用。本季，美國利潤率為 14.6%，歐洲利潤率為 15%，拉丁美洲、非洲高收入利潤率為 23.9%，亞太地區為 26.9%，加拿大為 25.4%。

So what would that sort of aggregate to for all outside US?

那麼，對於美國以外的所有人來說，這些匯總會帶來什麼呢？

So in our comment to that, I mean you know, of course, that there is some distortion between US and outside US in terms of how R&D gets allocated, but I think the point is that the US margins bottomed out in the first quarter and are improving with the actions that we are taking and we did lose some margin outside the United States with the volumes dropping in the second quarter, but our restructuring and the other actions should stem that tide and allow us to maintain margins going forward.

因此，在我們對此的評論中，我的意思是，當然，美國和美國以外的國家之間在研發分配方式方面存在一些扭曲，但我認為重點是美國的利潤率在第一季度觸底，並且隨著我們正在採取的行動，我們的業務正在改善，隨著第二季度銷量的下降，我們確實在美國以外地區失去了一些利潤，但我們的重組和其他行動應該會阻止這種趨勢，並使我們能夠保持未來的利潤。

Right. Could I just add one question, Bob? Are there any acquisitions that, I know you are not going to tell us what they are, but anything that is on the dock that is apt to be in the numbers by the end of the year?

正確的。我可以添加一個問題嗎，鮑勃？是否有任何收購，我知道您不會告訴我們具體是什麼，但有哪些即將在年底出現的收購？

There is nothing that we are prepared to talk about or suggest that you anticipate at this time.

目前我們還沒有準備好談論或建議您預期的任何內容。

Okay. Thank you very much.

好的。非常感謝。

Our next question comes from [Jonathan Rosensway] with Salomon Smith Barney. Please go ahead.

我們的下一個問題來自[Jonathan Rosensway] 和所羅門美邦。請繼續。

Hey guys, a couple of quick questions. First of all, you had mentioned, I think, the negative 4% organic volume growth in the low-end assumption of the 450. Can you break that out as to what that might look like US versus international and along with that, it seems that your organic volume growth has been hit a lot harder in this cycle than we have seen in previous cycle, obviously, here we are dealing not only with the US, but international as well, even just looking at the components separately, looking back historically, you know, it's been a good 26 years before you have been hit this hard on your volumes. I am just trying to gauge what it is that seems to be causing that and then finally, you know, with Europe and outside the United States, first starting to really turn down in a big way and that seeming to accelerate. Do you think that we should be looking for some impact on the early part of the 2002 as well and is that sufficiently being beaten to the expectations that are out there?

嘿夥計們，有幾個簡單的問題。首先，我認為您提到了 450 的低端假設中有機銷量負 4% 的增長。您能透露一下美國與國際的情況嗎？隨之而來的是，似乎在這個週期中，您的有機銷量增長受到的打擊比我們在上一個週期中看到的要嚴重得多，顯然，在這裡我們不僅與美國打交道，而且還與國際打交道，即使只是單獨看各個組成部分，回顧歷史，你知道，在你的銷量受到如此嚴重的打擊之前已經過去了26 年。我只是想弄清楚是什麼原因導致了這種情況，最後，你知道，歐洲和美國以外的地區，首先開始大幅下滑，而且似乎還在加速。您認為我們是否也應該尋找對 2002 年初的一些影響？這種影響是否足以超越人們的預期？

Yes. Good morning, Jonathan. I will try to get those. As far as the 4% negative for the rest of the year and the breakdown there, that would equate to about down 5 in the US and down 3 outside the United States. The 5 in the US would reflect certainly the fact that we have got a much easier comparison in the fourth quarter and so that would still imply certainly no improvement at all in the US in that forward end number. As far as looking back over a long period and looking at the impact of the economic cycle on our results; that is something that we think about a lot too. We all know our business is very broad, both geographically and by product line and we are just seeing this impact much more severe than we have in the past across all of these product lines in all the geographies, and in my mind as we talk about it, we just think that there is in today's world a fundamental acceleration in the manufacturing segments, how quickly companies are responding, and in 3M, the same in terms of taking $200 to $300 million of indirect costs out this year, beginning quickly. I think all of us in the manufacturing and commercial environment are reacting very strongly more quickly than in the past and it's a cycle that circles around and it is causing all of us to, really be impacted on the volume side more than we have in the past and maybe more strongly than would be, maybe expected if you were looking at overall GDP numbers, but I don't have a better answer than that, but we are certainly convinced that this is not a 3M issue, this is an economic fundamental issue.

是的。早安，喬納森。我會盡力得到這些。就今年剩餘時間的 4% 負值以及當地的細分而言，這相當於美國下降約 5%，美國以外地區下降約 3%。美國的 5 肯定反映了這樣一個事實，即我們在第四季度進行了更容易的比較，因此這仍然意味著美國的前端數字肯定沒有任何改善。至於長期回顧，看經濟週期對我們業績的影響；這也是我們常常思考的事情。我們都知道我們的業務非常廣泛，無論是在地理上還是在產品線方面，我們只是看到這種影響比過去在所有地區的所有這些產品線中都要嚴重得多，在我看來，當我們談論我們只是認為，當今世界的製造領域正在發生根本性的加速，各公司的反應速度有多快，而 3M 的情況也是如此，今年開始迅速削減 200 至 3 億美元的間接成本。我認為我們所有人在製造和商業環境中的反應都比過去更快，這是一個循環，它導致我們所有人在數量方面受到的影響比我們在行業中受到的影響更大。如果您查看總體GDP 數字，可能會比預期更強烈，但我沒有比這更好的答案，但我們確信這不是3M 問題，這是一個經濟基本面問題。

The third question, you have, Ron, do you remember?

第三個問題，羅恩，你還記得嗎？

The question related to carry over into 2002?

問題與結轉到 2002 年有關嗎？

Yeah.

是的。

Yeah. And I think, as I said in my comments, the crystal ball here is lacking, but we are certainly managing our business in a way that certainly if we are at the lower end of this cycle as in 450 scenario, there is no question that it is going to impact, certainly into the first quarter, but beyond that, I don't have any better visibility six month from now than probably anybody else.

是的。我認為，正如我在評論中所說，這裡缺乏水晶球，但我們肯定正在以一種方式管理我們的業務，如果我們處於這個週期的低端，如 450 情景，毫無疑問它肯定會影響到第一季度，但除此之外，我對六個月後的能見度可能不會比其他人更好。

And if things were to remain as is, would the company strive between the cost cutting and the fact that the comparison obviously are getting easier to still try to target sort of a mid-teens kind of a growth on EPS and in 2002 or if we see this flowing through a little bit into the early part of 2002, does that become a challenge?

如果事情保持原樣，公司是否會在成本削減和比較顯然變得更容易的事實之間努力，仍然試圖將每股收益和 2002 年的增長目標定為十幾歲左右，或者如果我們看到這種情況一直持續到2002 年初，這會成為一個挑戰嗎？

Well, I think as we have become more cautious quarter by quarter, I think any goal becomes a challenge, but I think with all the thing that we have got, with the restructuring, with the aggressive cost control with Six Sigma starting to kick in next year, we still feel very positive about our growth aspects next year, whether the economy situation will allow us to characterize that as we get into next year as mid-teens versus 10% or something, I'm really not sure at this point, Jon.

嗯，我認為，隨著我們每個季度都變得更加謹慎，我認為任何目標都會成為挑戰，但我認為，憑藉我們所擁有的一切，透過重組，透過六西格瑪的積極成本控制開始發揮作用明年，我們仍然對明年的成長方面感到非常樂觀，經濟狀況是否會讓我們將明年的成長率描述為十幾歲左右，而不是 10% 或其他什麼，我現在真的不確定，喬恩。

Okay, thanks guys.

好的，謝謝大家。

Our next question comes from [John Roberts] with Merrill Lynch. Please go ahead with your question.

我們的下一個問題來自美林證券的[約翰·羅伯茨]。請繼續你的問題。

Thanks Bob, did you have a full quarter of Quante, a year ago, so there was no acquisition benefit this year from Quante?

謝謝鮑勃，一年前您是否擁有 Quante 的整個季度，所以今年 Quante 沒有獲得收購收益？

That's correct. That's neutral this quarter.

這是正確的。本季情況為中性。

Secondly, could you update us on the currency hedging activities and what you have done now, does that allow you to at least advance for us what the currency impact would be in the third and fourth quarter?

其次，您能否向我們介紹一下貨幣對沖活動以及您現在所做的最新情況，這是否至少可以讓我們提前了解第三和第四季度貨幣對沖的影響？

Yes, I will let Jane talk more specifically, but in general as we talked when we had the investor conference, the main thrust of our hedging policies are going to be felt beginning in the first quarter of next year where the variability should be in the range of about half of what it otherwise would have. We have been somewhat more aggressive this year and I will let Jane, kind of, band where we might think the exchange would get in the rest of this year.

是的，我會讓簡更具體地談談，但總的來說，正如我們在投資者會議上所討論的那樣，我們對沖政策的主要推動力將從明年第一季開始感受到，其中的變化應該是範圍約為其他情況下的一半。今年我們採取了更積極的態度，我會讓 Jane 在我們可能認為今年剩餘時間的交流中發揮作用。

Thanks. Just a followup on what Bob said. As you know, we started this new program in the first quarter of 2001 and we began by building layers of 12-month hedges, so those 12-months hedges that were put in place in Q1 of 2001 will have impact in Q2 of 2002. Now, having said that, we did not want to have a [step] function in terms of the effectiveness, so we did back [fill] with some shorter term hedges in the interim period and those are the results you are seeing today. The program is 90% in place as we see and so beginning in 2002, we should have effective 12-month rolling action for our year-over-year comparison. Again the goal of the program is to hedge 50% of our P&L exposure with rolling 12-month hedges for those currencies for which hedging is feasible.

謝謝。只是鮑伯所說的後續。如您所知，我們在2001 年第一季啟動了這項新計劃，我們首先建立了12 個月對沖層，因此2001 年第一季實施的12 個月對沖將在2002 年第二季產生影響。現在，話雖如此，我們不希望在有效性方面有一個[步驟]功能，所以我們在中期確實回[填充]了一些短期對沖，這些就是您今天看到的結果。正如我們所見，該計劃已實施 90%，因此從 2002 年開始，我們應該採取有效的 12 個月滾動行動來進行同比比較。該計劃的目標再次是透過對那些可行的對沖貨幣進行 12 個月的滾動對沖來對沖 50% 的損益風險。

Right and then lastly, Bob, about your asthma inhaler business now running at a rate comparable to before you had lost the contract ... has the events changed?

對了，最後，鮑勃，關於您的哮喘吸入器業務現在的運行速度與您失去合同之前相當……事件發生了變化嗎？

I don't have that in mind, but actually when that contract was canceled, there really was not any significant sales going on at that time. That was canceled already before the launch in the introduction, and so that you really can't compare with that. I will say in the pharmaceutical areas that our other new product platform the Aldara platform is continuing to perform very strongly and ahead of expectations.

我沒有想到這一點，但實際上，當合約被取消時，當時確實沒有任何重大銷售發生。在介紹中發布之前就已經取消了，所以你真的無法與它進行比較。我要說的是，在製藥領域，我們的另一個新產品平台 Aldara 平台繼續表現非常強勁，超出了預期。

Thank you.

謝謝。

Our next question comes from [Mark Billy] with Banc of America Securities. Please go ahead with your question.

我們的下一個問題來自美國銀行證券公司的[馬克比利]。請繼續你的問題。

Good morning, guys. One thing I noticed looking at the P&L, was that R&D was down year-over-year. Can you give us an outlook for R&D for the balance of the year, and more importantly, what account for the reduction at R&D and of course what has been the impact on the current charge.

早上好傢伙。在查看損益表時我注意到的一件事是，研發費用逐年下降。您能否為我們介紹今年剩餘時間的研發前景，更重要的是，研發費用減少的原因是什麼，當然還有對目前費用的影響是什麼。

Yes, Mark, good morning. The R&D actually is, looking at a comparison that the second quarter of 2000 was quite high just in terms of how some costs fell. The R&D spending was down now and it is in the area of indirect costs and professional services. It is not reflecting a head count reduction or salary decline in the R&D. We have been maintaining our efforts there. However, as all the areas that we will look at significant cost control in terms of the billion dollars spending base there, and I would expect that having factored in all the restructuring pieces, but I would expect that sequentially R&D would be in the current range or maybe down a bit through the rest of the year. Ron, do you have any different...?

是的，馬克，早安。事實上，從一些成本下降的角度來看，2000 年第二季的研發水準相當高。研發支出現在有所下降，這是在間接成本和專業服務領域。這並不反映研發人員數量的減少或薪資的下降。我們一直在那裡努力。然而，由於我們將在數十億美元的支出基礎上考慮重大成本控制的所有領域，我預計將所有重組部分考慮在內，但我預計研發將在當前範圍內或者在今年剩餘的時間裡可能會有所下降。羅恩，你有什麼不同的…嗎？

No, I think that is a good outlook for the second half. I think that is down slightly from the first half level.

不，我認為下半年的前景很好。我認為這比上半年的水平略有下降。

Secondly, I noticed that interest expense ... net interest expense is down sequentially. It seems to reflect good cash flow management again. Do you think that pattern will continue?

其次，我注意到利息支出……淨利息支出連續下降。這似乎再次體現了良好的現金流管理。您認為這種模式會持續下去嗎？

Yes. It reflects good management and we are also of course benefiting from slightly lower rates but Jane do you want to comment on that, but certainly I would say that with the focus that we have on capital management, we expect to undershoot our internal projections here going forward as we keep squeezing on that, but Jane are we looking at a number that is down slightly the rest of the year?

是的。它反映了良好的管理，我們當然也受益於略低的利率，但簡你想對此發表評論嗎？但我當然會說，由於我們專注於資本管理，我們預計將低於我們的內部預測我們繼續努力，但簡，我們看到的數字在今年剩餘時間會略有下降嗎？

As Bob mentioned, we are benefiting from lower interest rates in the United States. We have 60% of our debt portfolio in floating rate instruments so as those instruments restart, we will continue to benefit from the decline in interest rates we have had recently.

正如鮑伯所提到的，我們正受益於美國較低的利率。我們的債務組合中有 60% 是浮動利率工具，因此隨著這些工具的重啟，我們將繼續受益於最近的利率下降。

Two more questions, one on pricing ... it looked as if for a while you were able to get international prices up as Bob said just a little bit anyway the major impact of currency ... can you do a better job there going forward?

還有兩個問題，一個是關於定價的……有一段時間，你似乎能夠提高國際價格，正如鮑勃所說，無論如何，貨幣的主要影響是一點點……你能在這方面做得更好嗎？ ？

Basically our pricing outside the US was flat I think that when you get in an environment like a Japan which by far biggest country, it is a big challenge for us because you know as we all know that is a deflation economy at the moment and with the exchange rates down in the teens that there is no way that you are going to offset that in the market. We did get pricing in the 1-2% range throughout most of our markets with the exception of the Electron Communications and Transportation Graphics and so, we are doing a reasonable job. I am reluctant to project that we can do a whole lot better with this soft economy I think that we are getting price to some extent is a sign of the pricing power that we have fundamentally in this weak economy, but to expect that we can do a whole lot better with the exception of Latin America. Latin America is currency state low you can get price there because that's the way that works, but the other economies it's going to be a challenge going forward.

基本上我們在美國以外的定價是持平的，我認為當你進入像日本這樣迄今為止最大的國家的環境時，這對我們來說是一個巨大的挑戰，因為你知道，我們都知道，目前是通貨緊縮經濟，而且匯率下跌了十幾美元，你無法在市場上抵銷這種影響。除了電子通訊和運輸圖形之外，我們在大多數市場上的定價確實在 1-2% 的範圍內，因此，我們做得還算合理。我不願意預測我們可以在這種疲軟的經濟中做得更好，我認為我們在某種程度上獲得價格是我們在這種疲軟的經濟中從根本上擁有定價能力的標誌，但期望我們能夠做到除了拉丁美洲以外，情況要好得多。拉丁美洲是貨幣較低的國家，你可以在那裡獲得價格，因為這是可行的方式，但對於其他經濟體來說，這將是一個挑戰。

My last question is more of a followup question. Quante reported pretty good results in its flat panel lay business ... I want to say up at nearly 25%. Can you characterize the growth of your best films area?

我的最後一個問題更多的是一個後續問題。 Quante 報告其平板外延業務取得了相當不錯的業績…我想說成長了近 25%。您能描述一下您最好的電影領域的發展嗎？

Yeah, the organic growth there is nature in the high single digits. I cannot respond to their situation, but in our records I think you know the biggest base today of our business in flat panel display is in the notebook computer area and certainly that area I don't think is growing significantly at this point and so really the growth that we have reflects our expansion into one other areas one of which is going to be more important for us going forward and that's the larger flat panel displays of television and desktop monitors, and as we expand into that area with our product line and particularly it is supplemented by some other polarizing acquisitions. We expect to show even stronger growth going forward, but at the moment with all of that base of business in notebook computers getting high single digit organic growth is a good result in terms of the market.

是的，有機成長自然是高個位數。我無法回應他們的情況，但在我們的記錄中，我想你知道我們今天平板顯示器業務的最大基礎是筆記型電腦領域，當然我認為該領域目前並沒有顯著增長，所以真的我們的增長反映了我們向其他領域的擴張，其中一個領域對我們的未來更為重要，那就是電視和桌上型顯示器的更大平板顯示器，隨著我們透過我們的產品線擴展到該領域，特別是它還輔以其他一些兩極分化的收購。我們預計未來將出現更強勁的成長，但目前筆記型電腦的所有業務基礎都取得了高個位數的有機成長，這對市場而言是一個很好的結果。

Thank you.

謝謝。

Our next question today comes from [Susan Lent] with Alliance Capital. Please go ahead.

今天我們的下一個問題來自聯盟資本的 [Susan Lent]。請繼續。

Hi, just a couple of questions. It looks like SG&A as a percentage of revenue was up sequentially from the first quarter. Was that just seasonality or is there something else going on there ... I would have expected that to be, kind of, flat to may be even down a little bit?

你好，只有幾個問題。 SG&A 佔營收的百分比似乎比第一季連續上升。這只是季節性因素還是還有其他原因......我本來預計會持平，甚至可能會下降一點？

Yeah, there is some seasonality to that in terms of our advertising dollars fall in such. It was down slightly sequentially in terms of dollars, but obviously with revenues sequentially down significantly, that number crept up a little bit, but we will see that starting in the third quarter coming down definitely as a result of the restructuring action.

是的，就我們的廣告收入下降而言，存在一些季節性。以美元計算，它連續略有下降，但顯然，隨著收入連續大幅下降，這個數字略有上升，但我們將看到，從第三季度開始，由於重組行動，這一數字肯定會下降。

On the restructuring, could you just comment on what the distribution of the remaining charges would be, kind of, third quarter-fourth quarter even in 2002. I mean is it going to be, kind of, descending where our third quarter is lower than second quarter and fourth quarter is lower than third quarter?

關於重組，您能否評論一下剩餘費用的分配情況，即使在 2002 年，第三季到第四季也是如此。我的意思是，我們第三季的費用是否會下降？第二季和第四季低於第三季？

At charge over the remaining quarters should be pretty much of a equal size nature because much that will be associated with our consolidation and rationalization that will be happening over the next 12 month period. So, the balance of charge should be split fairly evenly over the upcoming quarters.

剩餘季度的負責人規模應該大致相同，因為這很大程度上與我們未來 12 個月內將發生的整合和合理化有關。因此，在接下來的幾個季度中，費用餘額應該相當平均地分配。

Okay, and what percentage of the charge in this quarter was cash and what percentage of the charge going forward are going to be cash?

好的，本季費用中現金的比例是多少，未來費用中現金的比例是多少？

Yeah. I think almost all of the charge in this quarter was cash. I mean the actual cash extended was very small, but because it represented almost entirely the employees separation operation costs it was almost all cash and that will flip in the future where most of it is going to be non-cash, but Ron do you have any other color you can add on?

是的。我認為本季幾乎所有費用都是現金。我的意思是，實際發放的現金非常小，但因為它幾乎完全代表了員工離職營運成本，所以幾乎都是現金，而且將來會發生變化，其中大部分將是非現金，但羅恩，你有嗎？您可以添加任何其他顏色嗎？

No, to the comment related to the second quarter charge, there was actually 70 million or so paid out in cash and that quarter associated with the 397 million charge.

不，對於與第二季費用相關的評論，實際上有大約 7000 萬美元以現金支付，該季度涉及 3.97 億美元的費用。

Okay. Thank you.

好的。謝謝。

Our next question comes from [Robert Augmenstein] with more Morgan Stanley. Please go ahead.

我們的下一個問題來自[羅伯特·奧格門斯坦]和更多摩根士丹利。請繼續。

A couple of questions ... I am just trying to get a little bit more color from some of the statements in the press release. You noted in the release that you are making structural adjustments to help insure consistent future earning performance. Apart from which you do on the hedging, is anything else there that you are in the process right now that we should know about?

有幾個問題......我只是想從新聞稿中的一些陳述中獲得更多的資訊。您在新聞稿中指出，您正在進行結構調整，以幫助確保未來獲利表現的一致性。除了您在對沖方面所做的事情之外，您現在正在進行的過程中還有什麼我們應該了解的嗎？

I think what we were really referring to there was the nature of our restructuring efforts whereby we are focussing on those businesses and certainly industrial and some of our other market businesses focussed at the industrial market are going to be the target of the biggest part of the restructuring along with the corporate infrastructure and overhead along with some of our European structures and overhead. So, the flavor of that comment was really reflecting the nature of the restructuring efforts.

我認為我們真正指的是我們重組工作的性質，即我們專注於這些業務，當然工業和我們專注於工業市場的一些其他市場業務將成為最大部分的目標重組以及公司基礎設施和管理費用以及我們的一些歐洲結構和管理費用。因此，該評論的風格確實反映了重組工作的性質。

Okay. On an organic basis, I just want to make sure that I got the right number ... what was the volume in the electro telecom unit organic?

好的。在有機基礎上，我只是想確保我得到了正確的數字......電子電信單元有機的體積是多少？

Yeah. The organic volume was down about 7 1/2% in the electro communications in the second quarter and again particularly those businesses such as our electronic handling business, which is making chip carriers for transportation and installation of chips and the electrostatic control products, which are mainly associated with expanding or building new manufacturing facilities in the electronics area are under a lot of pressure right now sequentially, and that's was the big driver of that negative volume in the second quarter.

是的。第二季電子通訊領域的有機銷量下降了約 7.5%，尤其是我們的電子處理業務等業務，該業務正在製造用於晶片運輸和安裝的晶片載體以及靜電控制產品，這些業務主要與電子領域擴大或建設新製造設施相關的業務目前連續承受很大壓力，這是第二季銷售負成長的主要原因。

Do you have any breakout on what Telecom did?

您對電信的做法有什麼突破嗎？

Well, the Telecom Access Division, which is our big division was actually up higher single digits in volume and there is no organic because the quanta of acquisition was fully in there last year and so that business as the telecoms across the world continue to upgrade, to compete with other forms of bandwidth is doing very well. And on the other hand, the business that we have in the electronics providing electric components to the Telecom routers and other things are clearly in a very soft situation right now.

嗯，電信接入部門，這是我們的大部門，實際上在數量上增長了更高的個位數，並且沒有有機的，因為去年的收購量完全在那裡，因此隨著全球電信業務的不斷升級，與其他形式的頻寬競爭表現非常好。另一方面，我們在為電信路由器和其他產品提供電子元件的電子業務目前顯然處於非常疲軟的狀況。

I know you just commented in the press release, that there is a focus on increasing market share ... is there any corporate guidance to the divisions for people to be approaching the markets differently than they have in the past in terms of trying to gain market share, doing anything whether it is extending terms pricing, or anything to gain market share or that is any different than that has been done in the past.

我知道您剛剛在新聞稿中評論說，重點是增加市場份額……是否有任何公司對各部門的指導，讓人們以與過去不同的方式進入市場，試圖獲得利益市場份額，做任何事情，無論是延長定價條款，還是任何獲得市場份額的事情，或與過去所做的任何不同的事情。

Well, certainly, we are very cautious in this environment about extending terms as a way to gain sales just because that is a dangerous philosophy in my view in an economic challenging situation, but certainly, we are particularly in some of the industrial areas focussing harder on putting all our business together and trying to leverage the full power of what we can do in supplying customers. But fundamentally, I can't say that there is a change in the way that we are approaching the market except to make sure that we use the strength and power of 3M in our tremendous resources in a way that we can take advantage in weak times as we have shown, I think the best demonstration of that was when we really had the tough Asian situation a few years ago that we could stick it out, maintain our presence, not cut back at the sales level which we are not doing, and that served us very well in terms of driving a tremendous growth in our Asian business in the succeeding years. Our intent is says it all is to come out of this as a stronger competitor than we were going in.

嗯，當然，在這種環境下，我們對延長期限作為獲得銷售的一種方式非常謹慎，因為在我看來，在經濟充滿挑戰的情況下，這是一種危險的哲學，但當然，我們特別是在一些工業領域更加關注將我們所有的業務整合在一起，並努力充分利用我們為客戶提供服務的全部力量。但從根本上說，我不能說我們進入市場的方式發生了變化，只是確保我們能夠利用 3M 巨大資源中的實力和力量，以便我們能夠在疲軟時期發揮優勢。正如我們所展示的，我認為最好的證明是幾年前我們確實遇到了艱難的亞洲形勢，我們可以堅持下去，保持我們的存在，而不是削減我們沒有做的銷售水平，並且這對我們在接下來的幾年裡推動亞洲業務的巨大成長非常有幫助。我們的目的是說，這一切都是為了成為比我們進入時更強大的競爭對手。

Okay and are you seeing your competitors cutting back more on the sales side so that you are able to do that across the board in the next couple of years?

好吧，您是否看到您的競爭對手在銷售方面削減更多開支，以便您能夠在未來幾年內全面做到這一點？

Well, we are certainly are seeing it in some areas, although as we all know, it is hard to generalize across 3M all of our businesses globally, but we are doing our part, that is for sure.

嗯，我們確實在某些領域看到了這種情況，儘管眾所周知，很難概括 3M 在全球的所有業務，但我們正在盡自己的一份力量，這是肯定的。

And then just a last question, I think you said this that you expect third and fourth quarter results to be very similar?

最後一個問題，我想您說過您預計第三季和第四季的業績非常相似？

Yes, again without the absence of the crystal ball on the fourth quarter but we certainly see what the restructuring coming in mores strongly in the fourth quarter, less of that cyclicality between third and fourth than we have had in the past.

是的，在第四季度沒有水晶球的情況下，我們當然看到第四季的重組更加強烈，第三和第四季之間的周期性比過去要少。

Okay, thank you very much.

好的，非常感謝。

Our next question comes from [Jeff S\u0082ance] with UBS Warburg. Please go ahead with your question. [JEFF S\u0090ANCE]: Hi Bob. First you said 75 million savings maybe on the second half skewed and I think you said another number for 2002?

我們的下一個問題來自瑞銀華寶的 [Jeff S\u0082ance]。請繼續你的問題。 [JEFF S\u0090ANCE]：嗨，鮑伯。首先你說下半年的 7,500 萬儲蓄可能有所偏差，我想你說的是 2002 年的另一個數字？

Yeah. We said 75 and in 2002 we are going to be fully implemented in the second quarter and so that would be the 150 and so I would run at ... [JEFF S\u0090ANCE]: At 150 run rate or 150 additional?

是的。我們說過 75，在 2002 年，我們將在第二季度全面實施，所以這將是 150，所以我會運行...... [JEFF S\u0090ANCE]：以 150 運行率還是額外 150？

Go ahead Ron.

繼續吧，羅恩。

Savings rate at completion as we have indicated is 300 million and the first quarter that we will see the full quarter measure of that annual savings will actually be the third quarter of 2002. So, the 75 million quarterly rate will appear in third quarter of 2002 and then besides to that quarterly savings will increase as we move through the upcoming three or four quarters. [JEFF S\u0090ANCE]: [_____].

正如我們所指出的，完成時的儲蓄率是3 億，我們將看到年度儲蓄的完整季度衡量標準的第一季實際上是2002 年第三季。因此，7,500 萬的季度利率將出現在2002年第三季除此之外，隨著我們接下來的三到四個季度，季度節省將會增加。 [傑夫·蘇斯]：[_____]。

What I meant to say is that the full measure of the annual savings of 300 million a year will kick in the third quarter of 2002. [JEFF S\u0090ANCE]: Bullseye, got you, okay. And then finally, just trying to get a sense of, you know, we are trying to find out how much of that we can keep, can you give us a qualitative sense as to where you think you will see most of your savings ... where in the income statement and where among the operating divisions is this more SG&A, is it more industrial consumer, or more Europe. Is there any sense like that you can qualitatively discuss?

我的意思是說，每年 3 億美元的年度節省的全部費用將於 2002 年第三季度開始實施。[JEFF S\u0090ANCE]：Bullseye，明白了，好吧。最後，只是想了解一下，你知道，我們正在努力找出我們可以保留多少，你能否給我們一個定性的感覺，讓我們知道你認為你會在哪裡看到你的大部分儲蓄.. . 損益表中的哪個部分以及營運部門中的哪個部分更多的是SG&A，是更多的是工業消費者，還是更多的是歐洲。有這樣的感覺可以定性地討論嗎？

Yeah, as far as the sector breakdown, certainly the industrial and transportation and electro will be the three markets that will be most impacted, especially the materials I already went through that earlier. As far as the geographic, US and Europe will be the mainstay of it. I think it will be, or Ron, do you have any more color on the lines in terms.

是的，就行業細分而言，工業、運輸和電子無疑將是受影響最大的三個市場，尤其是我之前已經討論過的材料。從地域上看，美國和歐洲將是其主​​體。我想是的，或是榮恩，你對這句話還有更多的看法嗎？

On the lines, certainly the early portion of that savings will be most prominent in the SG&A area as our factory benefits will begin to appear towards the end of this year and into the early part of 2002. So, the full measure will hit the both cost of goods sold as well as SG&A, but the early part will be most prominent in the SG&A area. [JEFF S\u0090ANCE]: Great, thank you.

就實際情況而言，由於我們工廠的效益將在今年年底和 2002 年初開始顯現，因此早期節省的部分無疑將在 SG&A 領域最為突出。銷售成本以及 SG&A，但早期部分在 SG&A 領域最為突出。 [JEFF S\u0090ANCE]：太好了，謝謝。

Ladies and gentlemen, if you do have any additional questions at this time, please press #1 followed by the #4 on your pushbutton phone. Stephen Weber, please go ahead with your followup question?

女士們先生們，如果您此時還有任何其他問題，請按按鍵電話上的#1，然後按#4。 Stephen Weber，請繼續提出您的後續問題嗎？

Yes. Could you give us some feel as to what the acquisitions did on a sequential basis? I know you had those acquisitions sort of coming into the middle of quarter 1 and I am just trying to gauge what that did when you look quarter 1 to quarter 2.

是的。您能否讓我們了解一下這些收購依序進行的情況？我知道你們在第一季中期進行了這些收購，我只是想了解第一季到第二季的情況。

Yeah I think on acquisition the good news is that our acquisitions including the advantage a year ago are now positively contributing to our income and we are on-track in the integration plans that we have set out. I think in terms of sequential sales I don't know if I have the number right in my mind. It wasn't that big a number because we got substantial part of the sales in first quarter, but, Ron, do you have any additional color there?

是的，我認為關於收購的好消息是，我們的收購，包括一年前的優勢，現在正在為我們的收入做出積極貢獻，而且我們正在按照我們制定的整合計劃走上正軌。我認為就連續銷售而言，我不知道我腦子裡的數字是否正確。這個數字並不是很大，因為我們在第一季獲得了很大一部分銷售額，但是，羅恩，你還有其他的顏色嗎？

Steve, we may want to follow up with your next question with those numbers more precisely but certainly the second quarter sales were a little bit larger in terms the acquisition sales and they were in first quarter not any significant difference.

史蒂夫，我們可能想用更準確的數字來回答你的下一個問題，但可以肯定的是，就收購銷售而言，第二季度的銷售額要大一些，而第一季的銷售額沒有任何顯著差異。

When you say not significant, do you talk about 20 or 30 million or is that even smaller than that.

當你說「不重要」時，你指的是2000萬還是3000萬，還是比這個小。

I would guess that it would be in the 20 million range.

我猜想應該在2000萬左右。

Okay.

好的。

Follow up with your next question.

繼續你的下一個問題。

Okay, secondly, Jan, is there any news or anything that you can tell us about recovering all that money from the insurance company on the implant insurance stuff?

好的，其次，Jan，關於從保險公司追回植入保險方面的所有資金，您有什麼消息或任何事情可以告訴我們嗎？

Steve, the process is proceeding at it own slow phase and in fact there is still no news. We continue to have a liability of $8 million on our balance sheet. So in terms of that damage the worst is over, but in terms of the cash flow benefit, the timing is still uncertain.

史蒂夫，這個過程進展緩慢，事實上仍然沒有任何消息。我們的資產負債表上仍有 800 萬美元的負債。因此，就損害而言，最糟糕的時期已經過去，但就現金流效益而言，時機仍然不確定。

Do you think, what are your expectations about the balance of this year? Do you expect to get anything or is it just going to next year now?

您認為，您對今年的餘額有何預期？你希望得到什麼，還是明年可以得到？

We do continue to expect to get some inflow because we have some settlements with some of our insurance companies and they continue to stay on a regular basis, so it is not that we have a zero cash flow, but we still have a large receivable as you know. The part that is involved in the litigation will need to wait the settlement, though.

我們確實繼續期望獲得一些流入，因為我們與一些保險公司有一些和解，並且他們繼續保持定期，所以並不是說我們的現金流量為零，但我們仍然有大量的應收帳款，因為你知道。不過，涉及訴訟的部分還需要等待和解。

Okay. Thank you.

好的。謝謝。

Our next question coming from [Edward Long] with [____] Asset Management. Pleas go ahead with your question.

我們的下一個問題來自 [____] 資產管理公司的 [Edward Long]。請繼續你的問題。

Good morning guys, I may have missed this number... but what was the volume number of the Transportation and Safety segments excluding acquisitions and I just wanted a question concerning the margins internationally. How much did they deteriorate from the first quarter numbers, particularly in Asia and Europe?

早安，夥計們，我可能錯過了這個數字……但是，不包括收購在內的運輸和安全部門的銷量是多少，我只想問一個有關國際利潤率的問題。與第一季的數據相比，尤其是亞洲和歐洲的情況惡化了多少？

Yeah. The Transportation Graphics volume was up about 3 % on an organic basis in the second quarter and that's a combination of certainly some weakness. Our automotive business was in that sector and so they were challenged from a volume point of view. But as I said, our optical business without the acquisitions have continued to show growth as did some of the other business in that segment. Our Occupational Health and Safety has continued very good performance really in the soft manufacturing environment and so that is another positive story.

是的。第二季度，運輸圖形銷售量有機成長了約 3%，這肯定是一些弱點的結合。我們的汽車業務屬於該領域，因此從銷售的角度來看，他們面臨挑戰。但正如我所說，我們的光學業務在沒有收購的情況下繼續呈現成長，該領域的其他一些業務也是如此。我們的職業健康和安全在軟製造環境中繼續保持非常好的表現，這是另一個積極的故事。

The margins I think were down a bit internationally sequentially....

我認為國際上的利潤率連續下降了一點...

To your question, Asia Pacific margins which was in 26.9% in the second quarter, that was down from about 29% in the first quarter, in the first half, it was 28% but down a couple of points sequentially.

對於你的問題，第二季亞太地區的利潤率為 26.9%，低於第一季的 29% 左右，上半年為 28%，但比上一季下降了幾個百分點。

And of course, the international margins are really being hurt by the currency drop of in the second quarter when you get a 12% currency hit on the top line. It really is very difficult to maintain that margin in the short-term.

當然，國際利潤率確實受到了第二季貨幣貶值的影響，當你的收入下降了 12% 時。短期內要維持這樣的利潤率確實非常困難。

Very good. Thank you.

非常好。謝謝。

Our next question comes from [Jo Ann Fortina] with [_____] Capital. Please go ahead.

我們的下一個問題來自 [Jo Ann Fortina] 和 [_____] Capital。請繼續。

Yes. Can you please up data update on what is happening in Health Care, if you would? Just what is happening and the key initiatives.... things of that nature?

是的。如果願意的話，您能否提供有關醫療保健領域最新情況的數據？正在發生的事情和關鍵舉措......這種性質的事情？

Certainly. Our Health Care business is a number of discrete businesses, but our overall over-launching philosophy has been through this divestitures of a few years ago to really focus on several key platforms, and our Dental platforms clearly is being impacted very positively by the recent joint venture with ESPE and our strategy there is really integrating that and really leveraging the power of the great products of ESPE globally. On pharmaceutical, our strategy there is to continue to look at the best ways of maximizing the tremendous values in our portfolio, the immune response modifiers, our outdoor products is going far ahead of expectations and we are absolutely on track in terms of our phase 3 clinicals are new indicators of that. At the same time, we continue to look for how do maximize the value of this portfolio of medicine cabinets of indications and looking at options, partnering and other things inside or outside of the company and certainly we are very positive about the opportunities there. Our medical businesses in skin health platforms are the ones that are strong. We are looking continuously at how to make even stronger. That's an area we have talked about. Looking at acquisitions, we have nothing to say about that at the moment, and finally, our health information systems has been going very strongly and we looked as to how to leverage that outside the United States, as well as continue growth in the US. Overall we have volume growth about 10% including the acquisitions and getting some price and so that has been the real highlight of the nontechnical piece of our portfolio at the moment.

當然。我們的醫療保健業務是一系列獨立的業務，但我們的整體過度啟動理念是透過幾年前的剝離，真正專注於幾個關鍵平台，而我們的牙科平台顯然受到了最近聯合收購的非常積極的影響與 ESPE 的合資企業以及我們的策略是真正將其整合起來，並真正利用 ESPE 全球優秀產品的力量。在製藥方面，我們的策略是繼續尋找最大化我們的產品組合、免疫反應調節劑和戶外產品的巨大價值的最佳方法，我們的戶外產品遠遠超出了預期，我們在第三階段方面絕對走上了正軌。臨床是這方面的新指標。同時，我們繼續尋找如何最大化該適應症藥櫃組合的價值，並考慮公司內部或外部的選擇、合作和其他事情，當然我們對那裡的機會非常樂觀。我們皮膚健康平台的醫療業務是實力最強的。我們不斷研究如何變得更強大。這是我們討論過的一個領域。就收購而言，我們目前對此無話可說，最後，我們的健康資訊系統一直在非常強勁地發展，我們正在考慮如何在美國以外的地區利用這一點，以及如何在美國繼續成長。總體而言，我們的銷量成長了約 10%，包括收購和獲得一些價格，因此這是目前我們投資組合中非技術部分的真正亮點。

Thank you.

謝謝。

David Bedliter, please go ahead with your followup question.

David Bedliter，請繼續提出您的後續問題。

Hi, Bob ... can you give any more specifics on optical systems, what was the growth in the quarter and what you are expecting for growth in 2001. Thank you.

你好，鮑伯…您能提供更多有關光學系統的具體資訊嗎？本季的成長情況以及您對 2001 年成長的預期。謝謝。

I think I indicated that the organic piece of the growth was in the high single digits. Actual growth was a lot higher than that because of the acquisitions. We are optimistic about good continued performance in that because of our continued initiatives of combining the technologies we have required in the past couple of years, and so with our own technologies and using OUS platforms to expand our base into a more flat panel display of opportunities. Certainly the cell phone area is another target of us to become more active in the future. We see good growth prospects going forward there, which will be jump-started if we eliminate the drag of the computer softness at the moment.

我想我已經指出了成長的有機部分是高個位數。由於收購，實際成長遠高於成長。我們對良好的持續表現持樂觀態度，因為我們不斷主動將過去幾年所需的技術與我們自己的技術相結合，並利用 OUS 平台將我們的基礎擴展到更平板的機會展示。當然，手機領域是我們未來更活躍的另一個目標。我們看到那裡的成長前景良好，如果我們消除目前電腦疲軟的拖累，該地區將會快速啟動。

Thank you.

謝謝。

At this time I have no further questions pending. So please continue with your presentation or any closing remarks that you may have.

目前我沒有其他問題待解決。因此，請繼續您的演講或任何結束語。

I just like to thank everyone for their interest in our company. We have appreciated the opportunity to explain how we are aggressively managing in the current environment and setting the stage for stronger performance in the future. Thank you very much.

我只想感謝大家對我們公司的興趣。我們很高興有機會解釋我們如何在當前環境下積極管理，並為未來取得更強勁的業績奠定基礎。非常感謝。

Ladies and Gentlemen, that does conclude your conference for today. You may all disconnect.

女士們、先生們，今天的會議到此結束。你們都可以斷開連線。