3M 2004 Annual Report Download - page 31

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Safety, Security and Protection Services Business: The Safety, Security and Protection Services segment serves a
broad range of markets that strive to increase the safety, security and productivity of workers, facilities and systems.
Major product offerings include personal protection products, safety and security products, energy control products,
cleaning and protection products for commercial establishments, and roofing granules for asphalt shingles.
This segment’s products include maintenance-free and reusable respirators, electronic surveillance products, films
that protect against counterfeiting, and reflective materials that are widely used on apparel, footwear and accessories,
enhancing visibility in low-light situations. Other products include theft protection systems for libraries and library
patron self-checkout systems; spill-control sorbents; Thinsulate™ Insulation and Thinsulate™ Lite Loft™ Insulation;
3M™ Scotchtint™ Window Film for buildings; 3M™ Scotchshield™ Ultra Safety and Security Film for property;
nonwoven abrasive materials for floor maintenance and commercial cleaning; floor matting; and natural and color-
coated mineral granules for asphalt shingles. In March 2004, 3M completed the acquisition of Hornell Holding AB, a
global supplier of personal protective equipment.
Electro and Communications Business: The Electro and Communications segment serves manufacturers of
electronic and electrical equipment, as well as the construction and maintenance segments of electric utilities,
telecommunications and other industries, with products that speed the delivery of information and ideas, while also
reducing costs. Products include electronic and interconnect solutions, microinterconnect systems, telecommunications
products and electrical products.
Major electronic and electrical products include packaging and interconnection devices; insulating materials, including
pressure-sensitive tapes and resins; and related items. 3M™ Flexible Circuits use electronic packaging and
interconnection technology, providing more connections in less space, and are used in ink-jet print cartridges, cell
phones and electronic devices. This segment serves the world’s telecommunications companies with a wide array of
products for fiber-optic and copper-based telecommunications systems.
Transportation Business: The Transportation segment serves markets that include automotive, automotive
aftermarket, marine, aerospace and specialty vehicle markets. This segment provides components and products
that are used in the manufacture, repair and maintenance of automotive, marine, aircraft and specialty vehicles.
Major product categories include insulation components, including components for catalytic converters; functional
and decorative graphics; abrasion-resistant films; masking tapes; fasteners and tapes for attaching nameplates, trim,
moldings, interior panels and carpeting; coated, nonwoven and microstructured finishing and grinding abrasives;
structural adhesives; and other specialty materials. This segment also provides paint finishing and detailing products,
including a complete system of cleaners, dressings, polishes, waxes and other products.
Distribution
3M products are sold through numerous distribution channels. Products are sold directly to users and through
numerous wholesalers, retailers, jobbers, distributors and dealers in a wide variety of trades in many countries
around the world. Management believes the confidence of wholesalers, retailers, jobbers, distributors and dealers in
3M and its products, developed through long association with skilled marketing and sales representatives, has
contributed significantly to 3M’s position in the marketplace and to its growth. 3M has 189 sales offices worldwide,
with 15 in the United States and 174 internationally.
Research, Patents and Raw Materials
Research and product development constitute an important part of 3M’s activities. Products resulting from research
and development have been a major driver of 3M’s growth. Research, development and related expenses totaled
$1.143 billion in 2004, $1.102 billion in 2003 and $1.070 billion in 2002. Research and development, covering basic
scientific research and the application of scientific advances to the development of new and improved products and
their uses, totaled $759 million in 2004, $749 million in 2003 and $738 million in 2002. Related expenses primarily
include technical support provided to customers for existing products by 3M laboratories.
3M realigned its research and development efforts in 2003. This realignment was designed to develop technologies
needed for the future, to more closely align technical resources with business priorities, and to shorten the distance
between research and development and 3M’s customers. 3M established a single global Corporate Research
Laboratory, which brings together more than 600 researchers focused on technology building while also freeing up
approximately 400 other 3M technical people to directly support the growth of 3M business units.