3M 2005 Annual Report Download - page 21

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(Millions) 2005 2004 % change
Net sales $3,558 $3,416 4.2%
Operating income $1,159 $1,133 2.3%
Who we are Drawing on 3M’s technology platforms,
we provide products that people around the world rely
on every day. Our industry-leading Vikuiti™Display
Enhancement Films do amazing things with light,
making LCD TVs brighter, and the images on notebook
computers, cell phones, PDAs and other electronic
devices easier to see under a wide range of lighting
conditions. Our innovative reflective materials make
traffic signs more visible day or night and in harsh
weather, contributing to the safety of both drivers and
pedestrians. And our eye-catching, durable graphics
help companies promote their businesses – and
thereby stand out from the competition.
2005 Highlights
•Continued to expand the horizons of our Vikuiti™
Display Enhancement Films, with new applications
in MP3 players, portable gaming devices and other
popular consumer electronics products.
•Announced plans to build an LCD optical film
manufacturing facility in Poland to support the fast-
growing LCD TV market in Europe and enhance
service to customers there.
•Introduced 3M™Diamond Grade™DG3Reflective
Sheeting for highway signs. This breakthrough
product – based on 3M microreplication technology
– offers unparalleled brightness, making it the
optimal signing material for today’s challenging
driving environment.
•Added 3M™Digital Signage – providing consulting,
hardware, software and network management
solutions for in-store networks of electronic displays
and interactive kiosks – to our family of 3M brand
and Scotchprint brand graphics, which are synony-
mous with quality in graphics markets worldwide.
•Continued our record of sales and profit increases
and achieved an operating profit margin of 32.6
percent, despite lower demand for lens systems
used in CRT rear-projection televisions, and the
phaseout of our commercial videotape business.
(Millions) 2005 2004 % change
Net sales $2,333 $2,224 4.9%
Operating income $ 463 $ 342 35.4%
Who we are We turn 3M technology into solutions
for customers in electrical, electronics and
communications markets around the world. Our
products help customers connect, clean, polish,
insulate, protect, finish and test electrical,
electronics and communications pathways; store
energy; and transmit data, information and ideas.
As a result, we contribute to reliable sources of
electrical power, high-performance electronic
devices, and speedy and dependable
telecommunications networks globally.
2005 Highlights
•Increased operating income 35.4 percent
and operating profit margins to 19.8 percent.
•Posted strong growth in our core electronics
and electrical products businesses.
•Formed the 3M Electronics Market, an organization
that provides global electronics customers a single
point of entry for all their dealings with 3M.
•Completed the acquisition of Siemens
Ultrasound’s flexible circuit manufacturing
operation in California, expanding our flexible
circuits offering into the medical market.
•Continued to grow rapidly in emerging
markets, including Eastern Europe and Asia,
particularly China.
unique strengths
ingenious solutions 19
Electro and Communications Business
Display and Graphics Business