3M 2005 Annual Report Download - page 22

(Millions) 2005 2004 % change
Net sales $4,373 $4,230 3.4%
Operating income $1,215 $1,123 8.2%
Who we are We’re a $4 billion-plus provider of
medical and surgical products, dental and orthodontic
products, health information systems, pharmaceuticals,
and other health care products. Drawing on 3M’s rich
technology base, we help improve the quality of care
provided by health care professionals throughout the
world, while also helping make the delivery of patient
care more affordable.
2005 Highlights
•Increased operating income 8.2 percent
and operating profit margins to 27.8 percent.
•Achieved continued solid growth in our medical
and surgical, dental and orthodontics, and health
information systems businesses.
•Further strengthened our leading 3M™Tegaderm™
brand, driven by the development of innovative new
wound care products based on breakthrough 3M
acrylic polymer technology and the rebranding of
several existing products. Our newest offerings
extend our presence to the advanced wound care
market – a large and growing segment.
•Capitalized on the growing use of digital
technology in dentistry with the 3M™ESPE™Lava™
Crowns and Bridges System. This innovative system
offers dental laboratories a more efficient way of
producing dental restorations. Patients and dentists
benefit with a high-strength, highly aesthetic and
metal-free treatment solution.
•Introduced the 3M™Littmann®Electronic
Stethoscope Model 3000, which uses proprietary
technology to reduce ambient noise, allowing
health care professionals to pick up sounds that
other stethoscopes miss.
•Continued to expand our footprint in China,
Russia, India, Brazil and other high-growth
emerging markets.
•Received a key government health information
systems coding and compliance contract. This effort
will measure the quality of medical care provided to
military personnel and their families and ensure
cost savings for the U.S. Department of Defense.
(Millions) 2005 2004 % change
Net sales $3,806 $3,444 10.5%
Operating income $ 735 $ 610 20.5%
Who we are 3M industrial products are based on
outstanding technologies, and stand for quality,
performance and value worldwide. Whether it’s
tapes, abrasives, adhesives, specialty chemicals,
filtration systems or software for supply chain
management, our innovative products and value-
added services contribute to the productivity and
profitability of manufacturers in a wide range
of industries – from construction and food and
beverage to metal fabrication, mining, and oil
and gas.
2005 Highlights
•Increased sales 10.5 percent to $3.8 billion, with
solid growth in our industrial adhesives and tapes,
abrasive systems, and specialty materials businesses.
•Boosted operating income 20.5 percent
and operating profit margins to 19.3 percent.
•Acquired CUNO Incorporated, a leader in the liquid
filtration business, greatly expanding our presence in
the large and growing global liquid filtration market.
•Continued to take advantage of the rapid growth
of emerging economies, including China, India,
Russia and Poland.
•Increased value for our channel partners/
distributors, providing them with more seamless
access to a wide variety of 3M products.
•Received a “2005 R&D 100 Award” for the
development of 3M™Alumina-based Glass and
Glass Ceramics. Far more durable than conventional
abrasive materials, this breakthrough holds exciting
promise in both existing and adjacent market
segments. The prestigious R&D 100 awards,
presented annually by
R&D Magazine , recognize
the most innovative technical ideas of the year.
unique strengths
ingenious solutions
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Health Care Business
Industrial Business