3M 2015 Annual Report Download - page 26
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Please find page 26 of the 2015 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
Thefollowingdiscussestotalyearresultsfor2015comparedto2014,andalsodiscusses2014comparedto2013,foreachbusiness
segment.
Industrial Business ( 34.1 % of consolidated sales):
2015 2014 2013
Sales(millions) $ 10,328 $ 10,990 $ 10,657
Saleschangeanalysis:
Organiclocalcurrency 0.7 % 4.9 % 4.6 %
Acquisitions 0.6 — 3.6
Translation (7.3) (1.8) (1.7)
Totalsaleschange (6.0)% 3.1 % 6.5 %
Operatingincome(millions) $ 2,263 $ 2,389 $ 2,307
Percentchange (5.3)% 3.6 % 2.8 %
Percentofsales 21.9 % 21.7 % 21.6 %
TheIndustrialsegmentservesabroadrangeofmarkets,suchasautomotiveoriginalequipmentmanufacturer(OEM)andautomotive
aftermarket(autobodyshopsandretail),electronics,appliance,paperandprinting,packaging,foodandbeverage,andconstruction.
Industrialproductsincludetapes,awidevarietyofcoated,non-wovenandbondedabrasives,adhesives,advancedceramics,sealants,
specialtymaterials,3Mpurification(filtrationproducts),closuresystemsforpersonalhygieneproducts,acousticsystemsproducts,
andcomponentsandproductsthatareusedinthemanufacture,repairandmaintenanceofautomotive,marine,aircraftandspecialty
vehicles.3Misalsoaleadingglobalsupplierofprecisiongrindingtechnologyservingcustomersintheareaofhard-to-grind
precisionapplicationsinindustrial,automotive,aircraftandcuttingtools.3Mdevelopsandproducesadvancedtechnicalceramics
fordemandingapplicationsintheautomotive,oilandgas,solar,industrial,electronicsanddefenseindustries.
Year 2015 results:
SalesinIndustrialtotaled$10.3billion,down6.0percentinU.S.dollars.Organiclocal-currencysalesincreased0.7percent,
acquisitionsadded0.6percent,andforeigncurrencytranslationreducedsalesby7.3percent.
Onanorganiclocal-currencysalesbasis:
·Salesgrowthwasledby3Mpurification,automotiveOEM,andaerospaceandcommercialtransportation,whileboth
automotiveaftermarket,andindustrialadhesivesandtapessalesincreasedslightly.
·Salesinadvancedmaterialsdeclined,primarilyduetoweaknessintheoilandgasmarket.Salesinabrasivesystemsalso
declined.
·Geographically,salesincreased4percentinLatinAmerica/Canada,1percentinAsiaPacific,andwereflatinbothEMEA
andtheUnitedStates.
Acquisitions:
·AcquisitionsalesgrowthrelatedtothelateAugust2015acquisitionofPolypore’sSeparationsMediabusiness.
·Thisbusinessisaproviderofmicroporousmembranesandmodulesforfiltrationinthelifesciences,industrial,and
specialtysegments.Thisacquisitionenhances3M’scorefiltrationplatformandwillhelpgeneratenewgrowth
opportunitiesacrossthecompany.
Operatingincome:
·Operatingincomemarginsincreasedby0.2percentagepointsto21.9percent,helpedbythecombinationoflowerraw
materialcostsandselectivesellingpriceincreases.
·Operatingincomemarginswerenegativelyimpactedby0.4percentagepointsduetothe$42millionrestructuringcharge,
plusanadditional0.3percentagepointspenaltyduetothePolyporeSeparationsMediaacquisition.
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