3M 2004 Annual Report Download - page 19

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innovate, grow, deliver 17
DISPLAY AND
GRAPHICS BUSINESS
Who we are We’re a world leader in films that brighten the displays
on electronic products, such as flat-panel computer monitors, cellular
phones, personal digital assistants and LCD televisions. We’re also a
leader in touch screens and touch monitors; optical components used
in projection televisions; reflective sheeting for transportation safety;
and materials and systems for producing high-performance, attention-
getting graphic images.
2004 highlights
• Posted continued strong top-line growth, with sales increasing
15.0 percent to $3.4 billion.
• Operating income rose 27.8 percent and operating profit margins
increased to 33.2 percent, powered by a combination of double-
digit sales growth and benefits from Six Sigma and 3M’s other
corporate initiatives.
• Our Optical Systems Division, one of 3M’s largest and fastest-
growing businesses, turned in another stellar performance.
• Our commercial graphics and traffic safety systems businesses
also achieved solid results.
• All of our new-product development programs now are using Design
for Six Sigma tools and methods to help ensure that our new products
fully meet customer needs and drive continued strong growth.
• Continued to strengthen relationships with customers and add value
to their operations through joint Six Sigma projects.
(Millions) 2004 2003 % change
Net sales $3,406 $2,962 15.0%
Operating income $1,131 $ 885 27.8%
ELECTRO AND
COMMUNICATIONS BUSINESS
Who we are We’re a leading supplier of innovative solutions to the
electrical, electronics and communications industries. Our products
enable the efficient transmission of electrical power and speed the
delivery of information and ideas. We successfully compete in numerous
market segments, including electrical utilities; electrical construction,
maintenance and repair; OEM electrical and electronics; computers
and peripherals; consumer electronics; and telecommunications
(central office, outside plant and enterprise). Additionally, we supply
the aerospace, military, automotive and medical markets.
2004 highlights
• Increased operating income 14.1 percent on a 3.2 percent gain
in sales.
• Increased operating profit margins by 1.5 percentage points to
15.5 percent.
• Posted strong growth in Latin America, Africa and Canada.
• Broadened and deepened our focus on the Asia Pacific area.
• Strengthened key customer relationships through global strategic
account initiatives and Six Sigma.
• Developed a strong new-product pipeline based on obtaining the
“Voice of the Customer” early on.
(Millions) 2004 2003 % change
Net sales $1,876 $1,818 3.2%
Operating income $ 291 $ 255 14.1%