3M 2004 Annual Report Download - page 4

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2innovate, grow, deliver
3M’s International Operations continued to demonstrate why it is our single largest growth platform.
Sales increased 13.9 percent, following an increase of 19.6 percent in 2003. Much of this growth continues
to be driven by major progress in the world’s developing economies, including Greater China, Korea,
India and Eastern Europe. There’s an exceptionally strong match between the products we produce and
the needs of these fast-growing markets. International profits rose 30 percent, with growth of more than
35 percent in the Asia Pacific area and nearly 25 percent in Europe.
Looking ahead We enter 2005 with strong momentum, confident in our ability to sustain double-digit
earnings growth both this year and longer-term. Everywhere, we’re delivering strong results by leading
change and leveraging the power inherent in the 3M business model.
A culture of customer-inspired innovation is at the core of this business model. Our people apply multiple
technologies to a broad spectrum of markets, and they continue to transform the process of innovation –
from idea creation to successful product commercialization – by making better choices and at a faster pace.
Our new-product pipeline continues to expand significantly. This pipeline is expected to deliver $5.5 billion
of total sales over the period 2005 to 2007. We also have substantially reduced cycle time – the number
of months it takes for a qualified product idea to go from concept to successful commercialization. That
means sales start earlier and add up more quickly.
Another indicator of the success of our new-product development approach is the total sales generated
by new products during their year of introduction. In 2004, these sales were more than 50 percent greater
than in 2003. And new-product sales are expected to be even larger in 2005.
The power of Six Sigma Six Sigma is 3M’s overarching initiative, and it continues to drive growth, reduce
costs and increase cash flow in 3M businesses around the world. Since its launch four years ago, it has
become deeply embedded in every function, every business and every country. Simply put, it’s now the
way we work.
Today, more than 700 of our leaders around the world are dedicated to Six Sigma on a full-time basis.
We already have completed more than 16,000 projects, and an additional 16,000 projects currently are
under way. These include more than 400 “Six Sigma with Our Customers” projects, in which teams
of employees from 3M and other companies work side by side to solve pressing problems.