The Rising Influence of Rising Affluence

[DewDiligence]

Clarification on 3M’s 2012 EPS guidance re pension costs:

The $6.25-6.50 range for 2012 EPS includes a hit of $0.05-0.15 for pension costs, so it is on an apples-to-apples basis with the $5.85-5.95 EPS guidance for 2011, which also includes pension costs. Nevertheless, including the pension costs in both ranges does overstate the YoY growth rate to some degree.

Excluding pension costs, 2012 EPS guidance range is $6.10-6.45 and 2011 guidance (adding back $0.22 of pension costs) is $6.07-6.17. Thus, excluding pension costs, the midpoint 2012 EPS forecast ($6.375) represents 4% growth relative to the midpoint of the 2011 EPS guidance ($6.12).