3M's CEO: To stay or not?

3M Co. on Thursday outlined a familiar game plan for how it will deal this year with the uncertain global economy but remained tight-lipped about who's going to be coaching the team.

On a conference call discussing fourth-quarter results, the company deflected a pointed question about a successor to CEO George Buckley, who is scheduled to step down next month when his contract expires and he reaches the mandatory retirement age of 65.

Speculation over his successor and future role at the Maplewood-based giant has circulated for more than a year. Some company observers believed 3M had sent a strong signal last May when it elevated Inge Thulin, executive vice president of international operations, to the newly created post of chief operating officer.

But nothing has happened since, leading some people to conclude the board is struggling over whether to amend its rules and keep Buckley as CEO or have him hand off the job to Thulin or somebody else and remain only as chairman.

"The board may be considering some creative solutions," said Mariann Montagne, an analyst and portfolio manager at Marks Group Wealth Management in Minnetonka.

She said Buckley would probably like to remain CEO, but that could pose a dilemma for the board, because the company is trying to cut some costs with a voluntary early retirement program.

"Are you going to raise the retirement age for just one person?" she said.

After an awkward pause, Buckley, who hadn't even spoken on the call yet, parried the question. He said directors probably will consider the matter at their next meeting, whose date he did not disclose. "I don't think there's much else I can say about it because in a sense I'm being informed, not the informer, if you know what I mean."

The exchange was about the only surprising moment on the call. 3M's fourth-quarter sales of $7.1 billion, up from $6.7 billion, were in line with analysts' estimates. Earnings of $954 million, were up from $928 million, while earnings per share reached $1.35 -- 4 cents above analysts' projections.

3M shares edged up slightly more than 1 percent, closing at $87.

Officials said they expect acquisitions, new products and a greater presence in developing economies to continue to boost sales in 2012 while cuts in discretionary spending should bolster the bottom line.

"We don't know precisely what the global economy will bring this year, so we are managing cost very carefully in the early stages," Thulin said.

Even so, the company reaffirmed its previous forecast for this year, saying it expects earning per share of $6.25 to $6.50 compared with $5.96 for 2011.

"It was good to see that," Montagne said. "It shows they're managing well in a tough environment." In addition to sluggish global economic growth, 3M has been hurt by flooding in Thailand, which has affected production and distribution of electronics. The company said the floods reduced total sales by $35 million and operating profits by $20 million in the fourth quarter.

Jeff Windau, an analyst at Edward Jones in St. Louis, agreed, adding that he wasn't bothered by 3M's modest growth projections for the coming year. The company said it expects organic sales -- which don't include contributions from acquisitions, price increases or currency effects -- to increase 2 percent to 5 percent this year. That's less than the company's long-term goal of 7 percent to 8 percent annual organic growth.

"At this point it doesn't benefit them to be overly aggressive in their guidance," Windau said. He and Montagne noted that 3M continues to deal with problems in its electro and communications segment, where sales fell almost 3 percent due to sagging demand for consumer electronics, and in its display and graphics unit, where sales dropped almost 9 percent because of plummeting sales of LCD television films.

3M's industrial and transportation segment, which accounted for more than one-third of the company total sales of $29.6 billion last year, was the star performer in the fourth quarter. Sales and operating income both rose about 14 percent. Thulin said acquisitions accounted for 6 percent of the segment's sales growth.

Susan Feyder • 612-673-1723