3M 2006 Annual Report Download - page 20

Electro and
Communications Business
(Millions) 2006 2005
Net sales $2,483 $2,333
Operating income $ 438* $ 447
Scotch® Super 33+™ Vinyl Electrical Tape
Turning 3M technology into solutions
in electrical, electronics and
telecommunications markets worldwide
3M™ Flexible Circuits for medical devices
Who we are We turn 3M technology into
solutions for customers in electrical, electron-
ics and communications markets around
the world. Our products connect the world’s
power grid, enable global telecommunications
and support high-tech electronic devices.
Our scientists and engineers work “bench to
bench” with customers to create solutions
while they’re designing their products. By
teaming up with customers during the
design phase, we become an integral part
of their business.
Driving growth Our robust product pipeline,
sharp focus on customer service, continued
geographic expansion and selective acquisi-
tion of organizations to fi ll in white spaces all
are contributing to solid, accelerating growth.
In our electrical business, which sells insulat-
ing, testing and connecting products to utility,
manufacturing OEM, and construction and
maintenance markets, we are experiencing
strong top-line growth. We’re growing through
a strong fl ow of new products, continued
expansion of technical and manufacturing
operations, and entry into adjacent market
segments like electronic automotive safety
systems and termination kits for high-voltage
electrical lines.
Our electronics markets business also is
growing, with solid demand for our leading
semiconductor manufacturing technology
applied to innovative new products. Other
high-growth areas for this business include
electronic devices and consumer electronics.
We provide electronic assembly solutions
for some of the most innovative mobile hand-
held devices available.
We also are expanding our product lines
through strategic acquisitions, such as SCC
Products Inc., a manufacturer of fl exible
static control packaging and workstation
products for electronic devices; and
Credence Technologies Inc., a provider of
instruments and high-end monitoring equip-
ment for electrostatic discharge control and
electro magnetic compliance. Our acquisition
of the cable accessories division of India-
based Mahindra Engineering and Chemical
Products Ltd. adds cable jointing kits and
cable accessories.
We generate nearly 75 percent of our sales
outside the United States. We’re building
new technology centers and manufacturing
facilities and adding to our workforce in key
regions to serve international customers
better and faster.
In our businesses overall, our people and
their talents are the keys to our success.
We continue to hire and develop the best
and brightest minds in order to deliver top-
notch technical and other expertise to our
customers and drive growth.
3M™ Cold Shrink Termination
Kit for high-voltage electrical
transmission lines
3M™ No Polish
Connectors
3M™ Sintered Abrasives
*Includes $46 million of restructuring expenses