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·Inthefourthquarterof2015,3MdivesteditslicenseplateconvertingbusinessinFranceandsubstantiallyallofitslibrary
systemsbusinessasdiscussedinNote2.
Operatingincome:
·Operatingincomein2015totaled$1.3billion,up0.7percent.
·Operatingincomemarginswere23.7percentofsales,comparedto22.6percentin2014.
·Operatingincomemarginimprovementsweredrivenbyhighersellingpricesandlowerrawmaterialcosts,alongwith
productivity.
·Operatingincomemarginspenaltyfromacquisitionswaspartiallyoffsetbyabenefitfromdivestitures,whichresultedina
netmarginpenaltyof0.2percentagepoints.
Year 2014 results:
SalesinSafetyandGraphicstotaled$5.7billion,up2.7percentinU.S.dollars.Organiclocal-currencysalesincreased5.4percent,
andforeigncurrencytranslationreducedsalesby2.7percent.
Onanorganiclocal-currencysalesbasis:
·Salesgrowthwasledbypersonalsafety.3Malsosawpositiveorganiclocal-currencysalesgrowthincommercialsolutions,
andtrafficsafetyandsecurity.
·Salesintheroofinggranulesbusinessdeclinedyear-on-year.
·Organiclocal-currencysalesincreased6percentinEMEA,andincreased5percentintheUnitedStates,AsiaPacific,and
LatinAmerica/Canada.
Operatingincome:
·Operatingincomein2014totaled$1.3billion,up5.6percent.
·Operatingincomemarginswere22.6percentofsales,comparedto22.0percentin2013.
·Operatingincomemarginsbenefitedfromorganicvolumeleverageplussellingpriceincreases,partiallyoffsetby
incrementalinvestmentsrelatedtobusinesstransformation,enabledby3M’sglobalERPimplementation,pluscertain
portfoliomanagementactions.
Health Care Business ( 17.9 % of consolidated sales):
2015 2014 2013
Sales(millions) $ 5,420 $ 5,572 $ 5,334
Saleschangeanalysis:
Organiclocalcurrency 3.7 % 5.8 % 5.0 %
Acquisitions 0.8 0.4 0.1
Translation (7.2) (1.7) (1.3)
Totalsaleschange (2.7)% 4.5 % 3.8 %
Operatingincome(millions) $ 1,724 $ 1,724 $ 1,672
Percentchange — % 3.1 % 1.9 %
Percentofsales 31.8 % 30.9 % 31.3 %
TheHealthCaresegmentservesmarketsthatincludemedicalclinicsandhospitals,pharmaceuticals,dentalandorthodontic
practitioners,healthinformationsystems,andfoodmanufacturingandtesting.Productsandservicesprovidedtotheseandother
marketsincludemedicalandsurgicalsupplies,skinhealthandinfectionpreventionproducts,inhalationandtransdermaldrug
deliverysystems,oralcaresolutions(dentalandorthodonticproducts),healthinformationsystems,andfoodsafetyproducts.E
ffectiveinthethirdquarterof2015,withintheHealthCarebusinesssegment,theCompanyformedtheOralCareSolutions
Division,whichcombinedtheformer3MESPEand3MUnitekdivisions.
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