3M 2005 Annual Report Download - page 47

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21
Consumer and Office Business (14.1% of consolidated sales):
2005 2004 2003
Sales (millions) $2,986 $2,861 $2,607
Sales change analysis:
Local currency (volume and price) 3.4% 6.9% 2.6%
Translation 1.0 2.8 4.1
Total sales change 4.4% 9.7% 6.7%
Operating income (millions) $ 576 $ 542 $ 460
Percent change 6.3% 17.9% 2.5%
Percent of sales 19.3% 18.9% 17.6%
The Consumer and Office segment serves markets that include consumer retail, office retail, education, home
improvement, building maintenance and other markets. Products in this segment include office supply products,
stationery products, construction and home improvement products, home care products, protective material products
(including consumer health care products such as bandages), and visual systems products.
In 2005, Consumer and Office local-currency sales increased 3.4%, with broad-based growth across the many
channels 3M serves. Consumer and Office experienced solid local-currency sales growth in construction and home
improvement, home care and in its protective materials businesses. In the fourth quarter of 2005, sales were up slightly
in local-currency terms as compared to an exceptional fourth quarter of 2004, when sales increased 8.3%, as several
large retailers apparently increased their purchase rate level to meet their objectives. The continuing decline in 3M’s
Visual Systems business impacted sales by approximately 2% for the year. Consumer and Office continues to drive
success by combining unique functionality along with customer inspired design into new and mature products such as
Scotch® Tape, Post-It® Notes, Filtrete™ Filters and O-Cel-O™ sponges. Operating income increased 6.3% in
2005.
In 2004, local-currency sales growth in Consumer and Office was 6.9%. Sales growth was fairly broad-based across
the many retail channels 3M serves, most notably in mass-market consumer retail and home improvement. This
included strong sales growth in construction and home improvement/home care products, office supply products and
stationery products. Sales increased 8.3% in the fourth quarter of 2004 as several large retailers apparently increased
their purchase rate level to meet their objectives. Geographic area local-currency growth was led by the United States.
Operating income increased 17.9% to $542 million in 2004.
Electro and Communications Business (11.0% of consolidated sales):
2005 2004 2003
Sales (millions) $2,333 $2,224 $2,101
Sales change analysis:
Local currency (volume and price) 4.2% 2.7% (0.7)%
Translation 0.7 3.1 4.0
Total sales change 4.9% 5.8% 3.3%
Operating income (millions) $ 463 $ 342 $ 288
Percent change 35.4% 18.8% 9.7%
Percent of sales 19.8% 15.4% 13.7%
The Electro and Communications segment serves the electrical, electronics and communications industries, including
electrical utilities; electrical construction, maintenance and repair; OEM electrical and electronics; computers and
peripherals; consumer electronics; telecommunications central office, outside plant and enterprise; as well as
aerospace, military, automotive and medical markets; with products that enable the efficient transmission of electrical
power and speed the delivery of information and ideas. Products include electronic and interconnect solutions,
microinterconnect systems, high-performance fluids, high-temperature and display tapes, telecommunications products
and electrical products.