3M 2015 Annual Report Download - page 29

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TableofContents
Year 2015 results:
HealthCaresalestotaled$5.4billion,adecreaseof2.7percentinU.S.dollars.Organiclocal-currencysalesincreased3.7percent,
acquisitionsadded0.8percent,andforeigncurrencytranslationreducedsalesby7.2percent.
Onanorganiclocal-currencysalesbasis:
·Salesgrowthwasbroad-basedacrossmuchoftheHealthCareportfolio,includingfoodsafety,healthinformation
systems,criticalandchroniccare,oralcaresolutions,andinfectionprevention.
·Salesdeclinedindrugdeliverysystems.
·Onageographicbasis,salesincreased8percentinAsiaPacific,6percentinLatinAmerica/Canada,4percentinthe
UnitedStates,and1percentinEMEA.
·Indevelopingmarkets,HealthCareorganiclocal-currencysalesgrew8percent.
Acquisitions:
·AcquisitionsalesgrowthrelatedtotheMarch2015purchaseofIveraMedicalCorp.Iveraisamanufacturerofhealth
careproductsthatdisinfectandprotectdevicesusedforaccessintoapatient’sbloodstream.Inaddition,TreoSolutions
LLC,acquiredinApril2014,providedayear-on-yearbenefit(discussedfurtherinYear2014resultsbelow).
Operatingincome:
·Operatingincomewasflatindollarsat$1.7billion.
·Operatingincomemarginswere31.8percentin2015,comparedto30.9percentin2014,helpedbyportfolio
managementactionsthatarecontributingtohigherproductivityandmargins.
·Acquisitionimpactsreducedoperatingincomemarginsby0.2percentagepoints.
InSeptember2015,3MannouncedthatitwouldexplorestrategicalternativesforitsHealthInformationSystemsDivision(HIS),
whichincludedspinning-off,selling,orretainingthebusiness.InFebruary2016,followinganin-depthexplorationofstrategic
alternatives,theCompanyannouncedthatitmadethedecisiontoretainandfurtherinvestinHIS.
Year 2014 results:
HealthCaresalestotaled$5.6billion,anincreaseof4.5percentinU.S.dollars.Organiclocal-currencysalesincreased5.8percent,
acquisitionsadded0.4percent,andforeigncurrencytranslationreducedsalesby1.7percent.
Onanorganiclocal-currencysalesbasis:
·Salesgrewinallbusinesses,withthestrongestgrowthinhealthinformationsystems,drugdeliverysystems,foodsafety,
criticalandchroniccare,andinfectionprevention.
·Onageographicbasis,organiclocal-currencysalesincreased9percentinLatinAmerica/Canada,8percentinAsiaPacific,
6percentintheUnitedStates,and3percentinEMEA.
·Indevelopingmarkets,HealthCareorganiclocal-currencysalesgrew12percent.
Acquisitions:
·AcquisitionsalesgrowthrelatedtotheApril2014purchaseofTreoSolutionsLLC.Treoisaproviderofdataanalyticsand
businessintelligencetohealthcarepayersandproviders.
Operatingincome:
·Operatingincomeincreased3.1percentto$1.7billion.
·Operatingincomemarginswere30.9percentin2014,comparedto31.3percentin2013,withacquisitionimpactsreducing
operatingincomemarginsby0.3percentagepoints.
·Thegainfromsaleofanon-strategicequitymethodinvestmentbenefitedtotalyear2013operatingincomemarginsby0.3
percentagepoints.
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