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TableofContents
businessgroupspostedpositivegrowthintheAsiaPacificregion,ledbyHealthCareandConsumer,whileElectronicsandEnergy
declined.WithinAsiaPacific,organiclocal-currencysalesdeclinedby3percentinbothJapanandChina/HongKong.
Operatingincomeinthefourthquarterof2015was20.5percentofsales,comparedto21.5percentofsalesinthefourthquarterof
2014,adecreaseof1.0percentagepoints.Restructuringchargesreducedoperatingincomemarginsby1.6percentagepoints.In
addition,higherpension/postretirementbenefitcostsreducedmargins.Theseimpactswerepartiallyoffsetbyabenefitfromthe
combinationofsellingpriceincreasesandrawmaterialcostdecreases.
Year 2015 sales and operating income results:
Salestotaled$30.3billion,adecreaseof4.9percentfrom2014.Fromabusinesssegmentperspective,organiclocal-currencysales
increased3.7percentinHealthCare,3.4percentinConsumer,2.4percentinSafetyandGraphics,and0.7percentinIndustrial,
whilesalesdeclined1.9percentinElectronicsandEnergy.Fromageographicareaperspective,2015organiclocal-currencysalesgr
ew2.1percentintheUnitedStates,1.5percentinLatinAmerica/Canada,0.9percentinAsiaPacific,and0.8percentinEMEA.For
theCompanyintotal,organiclocal-currencysalesgrew1.3percent,withhigherorganicvolumescontributing0.2percentand
sellingpriceincreasescontributing1.1percent.Acquisitionsadded0.8percenttosales,whiledivestituresreducedsalesby0.2
percent.Foreigncurrencytranslationreducedsalesby6.8percentyear-on-year.Refertothesectionsentitled“Performanceby
BusinessSegment”and“PerformancebyGeographicArea”foradditionaldetail.
Operatingincomein2015was22.9percentofsales,comparedto22.4percentofsalesin2014,anincreaseof0.5percentage
points.Theseresultsincludedabenefitfromthecombinationofsellingpriceincreasesandrawmaterialcostdecreases,partially
offsetbyhigherpension/postretirementbenefitcosts.Refertothesectionentitled“ResultsofOperations”forfurtherdiscussion.
Year 2014 sales and operating income resul t s :
Fortotalyear2014,netincomeattributableto3Mwas$4.956billion,or$7.49perdilutedshare,comparedto$4.659billion,or
$6.72perdilutedshare,in2013,anincreaseof11.5percentonaperdilutedsharebasis.Salestotaled$31.8billion,anincreaseof
3.1percentfrom2013.Fromabusinesssegmentperspective,organiclocal-currencysalesgrew5.8percentinHealthCare,5.4
percentinSafetyandGraphics,5.2percentinElectronicsandEnergy,4.9percentinIndustrial,and3.9percentinConsumer.Froma
geographicareaperspective,2014organiclocal-currencysalesgrew6.3percentinAsiaPacific,4.9percentintheUnitedStates,4.5
percentinLatinAmerica/Canada,and3.2percentinEMEA.FortheCompanyintotal,organiclocal-currencysalesgrew4.9
percent,withhigherorganicvolumescontributing3.9percentandsellingpriceincreasescontributing1.0percent.Acquisitions
added0.1percenttosales,drivenbytheTreoacquisition.Foreigncurrencytranslationreducedsalesby1.9percentyear-on-year.
Operatingincomein2014was22.4percentofsales,comparedto21.6percentofsalesin2013,anincreaseof0.8percentagepoints.
Theseresultsincludedabenefitfromthecombinationofsellingpriceincreasesandrawmaterialcostdecreases,lower
pension/postretirementbenefitcosts,andprofitleverageonorganicvolumegrowth.Thesefactorswerepartiallyoffsetbystrategic
investmentsandotherfactors.Refertothesectionentitled“ResultsofOperations”forfurtherdiscussion.
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