3M 2004 Annual Report Download - page 20

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18 innovate, grow, deliver
INDUSTRIAL BUSINESS
Who we are We strive to understand the diverse market segments –
construction, food and beverage, metal fabrication, oil and gas, wood-
working and more – that make up the industrial marketplace. We then
use that knowledge to provide innovative products and other solutions
that make industrial customers more competitive. Our market-focused,
customer-centric approach increases our efficiency and makes it
easy for customers to do business with us. With a global technology,
manufacturing and marketing network, we partner with both multinational
and local customers.
2004 highlights
• Increased sales 13.1 percent to $3.8 billion, with double-digit growth
in our abrasive systems, Dyneon specialty materials, electronics
markets materials, and industrial adhesives and tapes businesses.
• Boosted operating income 44.5 percent and operating profit margins
to 17.4 percent.
• Saw continued strong results from a major realignment of our
U.S. sales organization, which gives industrial customers one
primary point of contact with 3M and provides us with increased
selling opportunities.
• Created an Integrated Customer Center, enhancing efficiency,
responsiveness and growth.
• Continued to strengthen relationships with customers through the
use of Six Sigma, leading edge e-tools, and significant improvements
to our supply chain and technical service operations.
(Millions) 2004 2003 % change
Net sales $3,792 $3,354 13.1%
Operating income $ 661 $ 458 44.5%
HEALTH CARE BUSINESS
Who we are We help health care professionals improve the quality of
health care throughout the world every day. Our innovative products
and services also help increase efficiency in the delivery of patient
care. We successfully compete in multiple market segments, including
medical and surgical products, pharmaceuticals, dental and orthodontic
products, health information systems, and personal care products.
2004 highlights
• Increased operating income 9.3 percent on a 5.9 percent sales gain,
with operating profit margins rising to 26.5 percent.
• Received U.S. Food and Drug Administration approval to market
Aldara™(imiquimod) Cream, 5% for the treatment of actinic keratosis,
a pre-cancerous skin condition, and superficial basal cell carcinoma,
a common form of non-melanoma skin cancer.
• To help reduce hospital-acquired infections, the U.S. Department of
Veterans Affairs and 3M executed a Six Sigma process improvement
project to deliver a systematic, data-based solution for improving
hand hygiene compliance in intensive care units.
• Launched the 3M™Unitek™APC PLUS™Adhesive Coated Appliance
System with patented color change chemistry, and the innovative
3M™Unitek™SmartClip™Self-Ligating Appliance System, providing
clinical excellence and ease of use for orthodontists.
• 3M™ESPE™RelyX™Unicem Self-Adhesive Universal Resin Cement,
which is strong, versatile and easy for dentists to use, was named the
“Most Innovative New Product of the Year” by Reality Publishing Co.,
an independent product evaluation service for dental professionals.
(Millions) 2004 2003 % change
Net sales $4,230 $3,995 5.9%
Operating income $1,123 $1,027 9.3%