3M 2004 Annual Report Download - page 11

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innovate, grow, deliver 9
In 2004, our sales outside the United States topped $12 billion for the
first time, an increase of nearly 14 percent from 2003. We increased sales
in local currencies 7.4 percent, well above the overall rate of economic
growth in these countries. Operating income rose 30 percent, following
an increase of 33 percent in 2003. Going forward, our goal is to continue
to increase local-currency sales significantly faster than the growth of
industrial production in these economies, with profits increasing at a
double-digit rate. We’re confident in our ability to meet this goal, driven
by engaged employees who are sharply focused on contributing to our
customers’ success.
Our people are taking full advantage of all 3M resources, including
Six Sigma, to increase both sales and productivity. Six Sigma is the
“universal language” at 3M, and it is being used to replicate our best
practices around the globe. Its uniform, data-driven approach is ideally
suited to bridging language and cultural differences.
We’re growing particularly fast in emerging economies. In China, where
we celebrated our 20th year of doing business in 2004, our sales have
more than doubled over the past two years and have more than quadrupled
over the past five years. In Korea, where we have operated for more than
25 years, our revenues increased nearly 40 percent in 2004, and sales
there also have more than quadrupled over the past five years. In both
of these countries, we’re increasing market penetration through expansion
of our technical, manufacturing, and sales and marketing resources.
3M companies in Taiwan, India, Mexico and Brazil also are growing
rapidly, as are 3M operations in Poland, Russia and Turkey. The diversity
of our product lines and our local presence enable us to meet a broad
range of country needs – from traffic signage and health care to home
maintenance and Post-it®Products for offices and homes.
EXPANDING
GLOBALLY