3M 2006 Annual Report Download - page 34

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Executive Officers
(continued)
Year
Elected to
Present Other Positions
Name Age Present Position Position Held During 2002-2006
Inge G. Thulin 53 Executive Vice President, 2004 Vice President, Asia Pacific; and
International Operations Executive Vice President,
International Operations, 2003-2004
Vice President, Europe and Middle
East, 2002-2003
John K. Woodworth 55 Senior Vice President, 2006 Vice President, Asia Pacific, 2004-2006
Corporate Supply Chain Operations Division Vice President, Electronic
Solutions Division, 2003-2004
Division Vice President, Electronic and
Interconnect Solutions Division, 2002-2003
Division Vice President, Interconnect
Solutions Division, 2001-2002
Richard F. Ziegler 57 Senior Vice President, 2003 Partner, Cleary, Gottlieb, Steen &
Legal Affairs and Hamilton, 1983-2002
General Counsel
Item 1A. Risk Factors.
The most significant risk factors applicable to the Company are as follows:
* Results are impacted by the effects of, and changes in, worldwide economic conditions. The Company operates in
more than 60 countries and derives more than 60% of its revenues from outsiGHWKH8QLWHG6WDWHV7KH&RPSDQ\¶V
business may be affected by factors in the United States and other countries that are beyond its control, such as
downturns in economic activity in a specific country or region, or in the various industries in which the Company
operates; social, political or labor conditions in a specific country or region; or adverse changes in interest rates, tax,
or regulations in the jurisdictions in which the company operates.
7KH&RPSDQ\¶VUHVXOWVDUHDIIHFWHGE\FRmpetitive conditions and customer preferences. Demand for the
&RPSDQ\¶VSURGXFWVZKLFKLPSDFWVUHYenue and profit margins, is affected by (i) the development and timing of the
introduction of competitive products; (ii)WKH&RPSDQ\¶VUHVSRQVHWRGRZQZDUGSUicing to stay competitive; (iii)
changes in customer order patterns, such as changes in the levels of inventory maintained by customers and the
timing of customer purchases which may be affectHGE\DQQRXQFHGSULFHFKDQJHVFKDQJHVLQWKH&RPSDQ\¶V
LQFHQWLYHSURJUDPVRUWKHFXVWRPHU¶Vability to achieve incentive goals; and (iYFKDQJHVLQFXVWRPHUV¶SUHIHUHQFHV
for our products, including the success of products offered by our competitors, and changes in customer designs for
their products that can affect the demDQGIRUVRPHRIWKH&RPSDQ\¶VSURGXFWV
* Foreign currency exchange rates and fluctuations in thosHUDWHVPD\DIIHFWWKH&RPSDQ\¶VDELOLW\WRUHDOL]H
projected growth rates in its sales and earnings. Because the Company derives more than 60% of its revenues from
outside the United States, its ability to realize projected growth rates in sales and earnings could be adversely
affected if the U.S. dollar strengthens significantly against foreign currencies.
7KH&RPSDQ\¶VJURZWKREMHFWLYHVDUHODUJHO\GHSHQGHQWon the timing and market acceptance of its new product
offerings, including its ability to renew its pipeline of new products and to bring those products to market. This ability
may be adversely affected by difficulties or delays in product development, such as the inability to identify viable new
products, obtain adequate intellectual property protection, or gain market acceptance of new products. There are no
guarantees that new products will prove to be commercially successful.
7KH&RPSDQ\¶VIXWXUHUHVXOWVDUHVXEMHFWWRIOXFWXDWions in the costs and availability of purchased components,
compounds, raw materials and energy, including oil and natural gas and their derivatives, due to shortages, increased
demand, supply interruptions, currency exchange risks, natural disasters and other factors. The Company depends on
various components, compounds, raw materials, and energy (including oil and natural gas and their derivatives)
supplied by others for the manufacturing of its products and it is possible that any of its supplier relationships could be
interrupted due to natural and other disasters and other events or be terminated in the future. Any sustained
LQWHUUXSWLRQLQWKH&RPSDQ\¶VUHFHLSWRIDGHTXDWHVXSSOLHVFould have a material adverse effect on the Company. In
addition, while the Company has a process to minimize volatility in component and material pricing, no assurance can