3M 2015 Annual Report Download - page 27
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Year 2014 results:
SalesinIndustrialtotaled$11.0billion,up3.1percentinU.S.dollars.Organiclocal-currencysalesincreased4.9percent,and
foreigncurrencytranslationreducedsalesby1.8percent.
Onanorganiclocal-currencysalesbasis:
·Salesgrowthwaspositiveacrossallbusinesses,ledbyaerospaceandcommercialtransportation,automotiveOEM,3Mp
urification,advancedmaterials,andabrasivesystems.
·Geographically,organiclocal-currencysalesincreased6percentintheUnitedStates,5percentinAsiaPacific,and3
percentinbothEMEAandLatinAmerica/Canada.
Operatingincome:
·Operatingincomewas$2.4billionin2014,anincreaseof3.6percent.
·Operatingincomemarginsincreasedby0.1percentagepointsto21.7percent.
·Operatingincomemarginsimprovedduetosalesvolumeleverage,plusthecombinationofsellingpriceincreasesandraw
materialcostdecreases,partiallyoffsetbyincrementalinvestmentsrelatedtobusinesstransformation,enabledby3M’s
globalERPimplementation.
Safety and Graphics Business ( 18.2 % of consolidated sales):
2015 2014 2013
Sales(millions) $ 5,515 $ 5,732 $ 5,584
Saleschangeanalysis:
Organiclocalcurrency 2.4 % 5.4 % 4.1 %
Acquisitions 2.6 — 1.3
Divestitures (0.4) — —
Translation (8.4) (2.7) (2.1)
Totalsaleschange (3.8)% 2.7 % 3.3 %
Operatingincome(millions) $ 1,305 $ 1,296 $ 1,227
Percentchange 0.7 % 5.6 % 1.4 %
Percentofsales 23.7 % 22.6 % 22.0 %
TheSafetyandGraphicssegmentservesabroadrangeofmarketsthatincreasethesafety,securityandproductivityofpeople,
facilitiesandsystems.Majorproductofferingsincludepersonalprotectionproducts;trafficsafetyandsecurityproducts,including
borderandcivilsecuritysolutions;commercialsolutions,includingcommercialgraphicssheetingandsystems,architecturaldesign
solutionsforsurfaces,andcleaningandprotectionproductsforcommercialestablishments;roofinggranulesforasphaltshingles;
plusfallprotectionequipment.
Year 2015 results:
SalesinSafetyandGraphicstotaled$5.5billion,down3.8percentinU.S.dollars.Organiclocal-currencysalesincreased2.4
percent,andforeigncurrencytranslationreducedsalesby8.4percent.Acquisitionsadded2.6percent,whiledivestituresreduced
salesby0.4percent.
Onanorganiclocal-currencysalesbasis:
·Salesgrowthwasledbyroofinggranules,commercialsolutions,andpersonalsafety,whilesaleswereflatintrafficsafety
andsecurity.
·Salesincreased6percentinAsiaPacific,3percentintheUnitedStates,and2percentinEMEA,whilesalesdeclined1
percentinLatinAmerica/Canada.
Acquisitionsanddivestitures:
·AcquisitionsalesgrowthreflectstheacquisitionofCapitalSafetyinearlyAugust2015.CapitalSafetyisaleadingglobal
provideroffallprotectionequipment.
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