3M 2013 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 2013 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

30
PERFORMANCE BY GEOGRAPHIC AREA
While 3M manages its businesses globally and believes its business segment results are the most relevant measure of
performance, the Company also utilizes geographic area data as a secondary performance measure. Export sales are
generally reported within the geographic area where the final sales to 3M customers are made. A portion of the products
or components sold by 3M’s operations to its customers are exported by these customers to different geographic areas.
As customers move their operations from one geographic area to another, 3M’s results will follow. Thus, net sales in a
particular geographic area are not indicative of end-user consumption in that geographic area. Financial information
related to 3M operations in various geographic areas is provided in Note 16. As discussed in Note 16, during the first
quarter of 2013, 3M realigned its geographic area structure to include Puerto Rico in the United States rather than in the
Latin America/Canada region. Geographic area information presented herein reflects the impact of this change for all
periods presented.
A summary of key information and discussion related to 3M’s geographic areas follow:
2013
United
States Asia
Pacific
Europe,
Middle East
& Africa
Latin
America/
Canada Other
Unallocated Worldwide
Net sales (millions)
$
11,151
$
9,047
$
7,085
$
3,611
$
(23)
$
30,871
% of worldwide sales
36.1
%
29.3
%
22.9
%
11.7
%
―
100.0
%
Components of net sales change:
Volume
— organic
2.4
%
4.3
%
1.5
%
1.5
%
―
2.5
%
Price
0.7
(0.7)
0.6
5.6
―
0.9
Organic local-currency sales
3.1
3.6
2.1
7.1
―
3.4
Acquisitions
2.5
0.2
2.0
0.3
―
1.4
Divestitures
(0.1)
―
―
―
―
―
Translation
―
(4.3)
1.2
(5.1)
―
(1.6)
Total sales change
5.5
%
(0.5)
%
5.3
%
2.3
%
―
3.2
%
Operating income (millions)
$
2,210
$
2,386
$
1,168
$
908
$
(6)
$
6,666
Percent change
14.0
%
(2.6)
%
0.4
%
(3.0)
%
―
2.8
%
For total year 2013, as shown in the preceding table, sales rose 3.2 percent, with organic volume increases of 2.5 percent
and selling price increases of 0.9 percent. Acquisitions added 1.4 percent, while foreign currency translation reduced
sales by 1.6 percent. Organic local-currency sales increased 7.1 percent in Latin America/Canada, 3.6 percent in Asia
Pacific, 3.1 percent in the United States, and 2.1 percent in EMEA. For 2013, international operations represented 63.9
percent of 3M’s sales.
2012
United
States Asia
Pacific
Europe,
Middle East
& Africa
Latin
America/
Canada Other
Unallocated Worldwide
Net sales (millions)
$
10,571 $
9,092 $
6,730 $
3,529 $
(18)
$
29,904
% of worldwide sales
35.3 %
30.4 %
22.5 %
11.8 %
―
100.0 %
Components of net sales change:
Volume
— organic
2.1 %
1.3 %
(2.8)%
7.0 %
―
1.2 %
Price
2.1 (1.2) 2.2 4.1 ―
1.4
Organic local-currency sales
4.2 0.1 (0.6) 11.1 ―
2.6
Acquisitions
0.8 0.3 1.9 0.1 ―
0.8
Translation
― (0.6) (6.2) (6.4) ―
(2.4)
Total sales change
5.0 %
(0.2)%
(4.9)%
4.8 %
―
1.0 %
Operating income (millions)
$
1,938 $
2,450 $
1,163 $
936 $
(4)
$
6,483
Percent change
18.2 %
(2.9)%
1.2 %
5.6 %
―
4.9 %
For total year 2012, as shown in the preceding table, sales rose 1.0 percent, with organic volume increases of 1.2 percent
and selling price increases of 1.4 percent. Acquisitions added 0.8 percent, while foreign currency translation reduced
sales by 2.4 percent. Organic local-currency sales growth was led by Latin America/Canada at 11.1 percent and the