3M 2014 Annual Report Download - page 36

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30
Consumer Business (14.2% of consolidated sales):
2014
2013 2012
Sales (millions)
$
4,523
$
4,435
$
4,386
Sales change analysis:
Organic local currency
3.9
%
3.0
%
3.6
%
Acquisitions
―
―
2.0
Divestitures
(0.1)
(0.1)
―
Translation
(1.8)
(1.8)
(1.9)
Total sales change
2.0
%
1.1
%
3.7
%
Operating income (millions)
$
995
$
945
$
943
Percent change
5.3
%
0.2
%
10.3
%
Percent of sales
22.0
%
21.3
%
21.5
%
The Consumer segment serves markets that include consumer retail, office retail, office business to business, home
improvement, drug and pharmacy retail, and other markets. Products in this segment include office supply products,
stationery products, construction and home improvement products (do-it-yourself), home care products, protective
material products, certain consumer retail personal safety products, and consumer health care products.
Year 2014 results:
Sales in Consumer totaled $4.5 billion, up 2.0 percent in U.S. dollars. Organic local-currency sales increased 3.9 percent,
divestitures reduced sales by 0.1 percent, and foreign currency translation reduced sales by 1.8 percent. On an organic
local-currency basis, sales growth was led by construction and home improvement. 3M also posted positive growth in its
consumer health care and home care businesses. Sales in the stationery and office supplies business were flat.
On a geographic basis, organic local-currency sales increased 6 percent in Asia Pacific, 4 percent in the United States, 3
percent in Latin America/Canada, and 1 percent in EMEA.
In developing markets, organic local-currency growth was 6 percent.
Consumer operating income was $1.0 billion, up 5.3 percent from 2013. Operating income margins were 22.0 percent, up
from 21.3 percent in 2013. The combination of strong organic growth, productivity, and portfolio prioritization continued to
drive efficiencies across this business.
Year 2013 results:
Sales in Consumer totaled $4.4 billion, up 1.1 percent in U.S. dollars. Organic local-currency sales increased 3.0 percent,
divestitures reduced sales by 0.1 percent, and foreign currency translation reduced sales by 1.8 percent. On an organic
local-currency basis, sales growth was led by consumer health care, home care, and construction and home
improvement. Organic local-currency sales increased slightly in stationery and office supplies, impacted by continued
consolidation trends in the office retail and wholesale market.
On a geographic basis, organic local-currency sales increased 7 percent in Asia Pacific and 3 percent in both Latin
America/Canada and the United States. Organic local-currency sales declined 1 percent in EMEA.
Consumer operating income was $945 million, up 0.2 percent from 2012. Operating income margins were 21.3 percent,
down slightly from 2012.
As discussed in Note 2, in June 2013, 3M completed the sale of the Scientific Anglers and Ross Reels businesses to The
Orvis Company, Inc. based in Manchester, Vermont.