3M 2006 Annual Report Download - page 49

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Consumer and Office Business (14.1% of consolidated sales):
2006 2005 2004
Sales (millions) $3,238 $3,033 $2,901
Sales change analysis:
Local currency (volume and price) 6.1% 3.6% 7.1%
Translation 0.7 1.0 2.8
Total sales change 6.8% 4.6% 9.9%
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Operating income (millions) $ 579 $ 561 $ 514
Percent change 3.2% 9.1% 17.3%
Percent of sales 17.9% 18.5% 17.7%
The Consumer and Office segment serves markets that include consumer retail, office retail, education, and home
improvement. Products provided to these and other markets include office supply products, stationery products,
construction and home improvement products, home care products, protective material products (including consumer
health care products such as bandages), and visual systems products.
In 2006, Consumer and Office local-currency sales growth of 6.1% was broad-based across the portfolio, led by the
construction and home improvement division, which serves the do-it-yourself retail channel. 3M also posted very good
sales growth in the mass retail channel. 3M continues to penetrate large key accounts, primarily in the United States,
with an array of unique, highly functional products featuring customer-inspired designs. Operating income was
$579 million, up 3.2% year on year. 3M experienced slower sales growth in the construction and home improvement
market in the fourth quarter of 2006, impacted by a housing slowdown in the United States that is expected to
FRQWLQXHLQWR0¶VYLVXDOV\VWHPVEXVLQHVVZKich traditionally has offered analog overhead and electronic
projectors and film, continued to experience a decline and reduced overall Consumer and Office sales growth by
approximately 1% for the year.
In 2005, Consumer and Office local-currency sales increased 3.6%, with broad-based growth across the many channels
3M serves. Consumer and Office experienced solid local-currency sales growth in construction and home improvement,
home care and in its protective materials businesses. In the fourth quarter of 2005, sales were up slightly in local-currency
terms compared with the exceptional fourth quarter of 2004, when local-currency sales increased 8.3%, as several large
retailers apparently increased their purchase rate level to meetWKHLUREMHFWLYHV7KHFRQWLQXLQJGHFOLQHLQ0¶V9LVXDO
Systems business impacted sales by approximately 2% for the year. Consumer and Office continues to drive success by
Safety, Security and Protection Services Business (11.4% of consolidated sales):
2006 2005 2004
Sales (millions) $2,621 $2,292 $2,125
Sales change analysis:
Local currency (volume and price) 13.2% 6.9% 6.6%
Translation 1.2 1.0 3.6
Total sales change 14.4% 7.9% 10.2%
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Operating income (millions) $ 575 $ 537 $ 465
Percent change 7.0% 15.4% 11.9%
Percent of sales 21.9% 23.4% 21.9%
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. In August 2006, 3M completed the acquisition of Security Printing and Systems
Limited, a producer of finished, personalized passports and secure cards, which expands the 3M product line related to
border and civil security solutions.
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combining unique functionality and customer-inspired design in new and mature products such as Scotch® Tape, Post-it®