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27
Safety and Graphics Business (18.0% of consolidated sales):
2014
2013 2012
Sales (millions)
$
5,732
$
5,584
$
5,406
Sales change analysis:
Organic local currency
5.4
%
4.1
%
2.3
%
Acquisitions
―
1.3
0.6
Translation
(2.7)
(2.1)
(2.8)
Total sales change
2.7
%
3.3
%
0.1
%
Operating income (millions)
$
1,296
$
1,227
$
1,210
Percent change
5
.6
%
1.4
%
(1.8)
%
Percent of sales
22.6
%
22.0
%
22.4
%
The Safety and Graphics segment serves a broad range of markets that increase the safety, security and productivity of
people, facilities and systems. Major product offerings include personal protection products; traffic safety and security
products, including border and civil security solutions; commercial solutions, including commercial graphics sheeting and
systems, architectural surface and lighting solutions, and cleaning and protection products for commercial establishments;
and roofing granules for asphalt shingles.
Year 2014 results:
Sales in Safety and Graphics totaled $5.7 billion, up 2.7 percent in U.S. dollars. Organic local-currency sales increased
5.4 percent, and foreign currency translation reduced sales by 2.7 percent. On an organic local-currency basis, sales
growth was led by personal safety. 3M also saw positive organic local-currency sales growth in commercial solutions, and
traffic safety and security systems. Sales in the roofing granules business declined year-on-year.
Organic local-currency sales increased 6 percent in EMEA, and increased 5 percent in the United States, Asia Pacific,
and Latin America/Canada.
Operating income in 2014 totaled $1.3 billion, up 5.6 percent. Operating income margins were 22.6 percent of sales,
compared to 22.0 percent in 2013. Operating income margins benefited from organic volume leverage plus selling price
increases, partially offset by incremental investments related to business transformation, enabled by 3M’s global ERP
implementation, plus selective restructuring.
Year 2013 results:
Sales in Safety and Graphics totaled $5.6 billion, up 3.3 percent in U.S. dollars. Organic local-currency sales increased
4.1 percent, acquisitions added 1.3 percent, and foreign currency translation reduced sales by 2.1 percent. On an organic
local-currency basis, sales grew in personal safety, commercial solutions, and industrial minerals. Organic local-currency
sales declined in traffic safety and security systems. Acquisition growth related to the September 2012 purchase of net
assets that comprised the business of Federal Signal Technologies Group.
Organic local-currency sales increased 9 percent in both Latin America/Canada and Asia Pacific, and 2 percent in the
United States. Organic local-currency sales were flat in EMEA.
Operating income in 2013 totaled $1.2 billion, up 1.4 percent. Operating income margins were 22.0 percent of sales,
compared to 22.4 percent in 2012. This decline in margins related to the Federal Signal Technologies Group acquisition,
which reduced 2013 operating income margins by 0.5 percentage points.