3M 2006 Annual Report Download - page 47

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
Health Care Business without Pharmaceuticals:
2006 2005 2004
Sales (millions) $3,237 $2,963 $2,803
Sales change analysis:
Local currency (volume and price) 8.5% 5.3% 2.9%
Translation 0.7 0.4 4.2
Total sales change 9.2% 5.7% 7.1%
  
Operating income (millions) $ 806 $ 888 $ 779
Percent change (9.1)% 14.0% 12.8%
Percent of sales 24.9% 30.0% 27.8%
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pharmaceuticals).
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and development costs related to the Brontes acquisition. Business-specific restructuring actions totaled $15 million,
primarily comprised of severance and reODWHGEHQHILWVSOXVDVVHWLPSDLUPHQWV
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Operational efficiency helped drive a 14.0% increase in operating income in 2005.
Pharmaceuticals Business:
2006 2005 2004
Sales (millions) $ 774 $797 $793
Sales change analysis:
Local currency (volume and price) (3.5)% 0.3% (6.7)%
Translation 0.6 0.3 4.3
Total sales change (2.9)% 0.6% (2.4)%
  
Operating income (millions) $1,039 $226 $194
Percent change N/A 16.6% (10.5)%
Percent of sales N/A 28.4% 24.5%
 
,QWRWDOWKHFRPELQDWLRQRIWKHIROORZLQJLWHPVSRVLWLYely impacted total year 2006 pharmaceuticals operating income
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The operating income gain related to these transactions, whicKLVLQFOXGHGLQSKDUPDFHXWLFDOVWRWDOHGELOOLRQ$V
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worldwide staff overhead reduction actions taken to streamline the Company's cost structure in response to the sale
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expenses. In addition, an environmental reserve of $13 million was recognized related to the pharmaceuticals
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In 2006, pharmaceuticals sales totaled $774 million, a local-FXUUHQF\VDOHVGHFUHDVHRI7KHHDUO\'HFHPEHU
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