Company name: 3M
Founder: John Dwan Hermon, Cable Henry, Bryan William, A. McGonagle
Total Assets: US$36.500 billion
Revenue: US$5.349 billion
Net Income: US$ 4.02 billion
Country: United States of America
Headquarter: Maplewood, Minnesota
Number of employees: 93,516
Loath to be caught in one industry, 3M makes everything from tape to high-tech protection gear. The diversified organization’s products fall below 4 phase categories: Safety & Industrial, Transportation & Electronics, Health Care, and Consumer. The organization generates approximately 60% of its income outside the US. 3M was founded in 1902 as a small mining undertaking in Northern Minnesota referred to as Minnesota Mining and Manufacturing Company.
3M launched in 1902 as Minnesota Mining and Manufacturing Company, a small mining assignment in Northern Minnesota. The corporation went public on the NYSE in 1946 as 3M.
The Safety & Industrial segment brings in around 35% of revenue and serves industrial, electrical, and protection markets. Major services include personal security items and production equipment like adhesives and abrasives. It additionally markets automotive aftermarket products and roofing granules.
3M’s Transportation & Electronics department generates 30% of its revenue. It houses the enterprise’s display systems business, which sells movies and components for LCD monitors and different electronic displays. The phase also supplies substances for electronics and automobile and aerospace applications. Its commercial products consist of graphics sheeting and cleaning merchandise.
The organization’s Health Care segment provides approximately 20% of its sales and goals clinics, pharmaceutical companies, and food manufacturers. Its services encompass medical supplies; skin fitness, oral care, and meal safety products; and drug delivery structures.
Roughly 15% of 3M’s income comes from its Consumer business. The department addresses customer, pharmacy, and office retail; home improvement; and building preservation markets. Some of the unit’s most recognizable brands are Scotch tapes and cleansing merchandise, Post-it notes, Filtrete furnace and air conditioner filters, Scotchgard Fabric Protectors, and Nexcare and ACE bandages.
3M has approximately 75 production plants in a few 30 US states and operates around a hundred and ten manufacturing and converting centers in more or less 35 different countries. Overall, 3M has operations in extra than 70 countries.
3M generates around 40% of its income from the US; 30% from Asia and the Pacific islands; approximately 20% from Europe, the Middle East, and Africa; and roughly 10% from Latin America and Canada.
3M sells its merchandise through distribution channels along with dealers, distributors, retailers, jobbers, wholesalers, and sales reps. it also markets without delay to consumers. The corporation’s merchandise is used in nearly all enterprise sectors. The enterprise spends around $400 million on advertising each year.
3M has proven lackluster overall performance given that 2014. Modest revenue expansion of approximately 5% in every of 2017 and 2018 was in large part offset by reductions in the two preceding years. It’s confirmed the overall increase of the simplest 3% within the closing 5 years. The enterprise’s net earnings fared better: it added nearly 10% in that point, thank you in most cases to gains in 2018 after 3M divested its identification management commercial enterprise and it’s Communication Markets Division.
In 2018, 3M grew its income by 4% to $32.8 billion based totally mostly on the strength of its former Safety and Graphics and Industrial segments. In Safety and Graphics, a gradual shingle manufacturing market most effective in part offset increased sales of its personal protection gadget, commercial solutions (along with photographs sheeting and cleansing products), and products obtained through its purchase of fire safety agency Scott Safety.
The business enterprise’s net income received 10% in 2018 to stop the year at $5.3 billion thanks to lower costs related to restructuring sports.
3M decreased its cash stores by $200 million to $2.9 billion in 2018. Operations and investments contributed $6.four billion and $222 million, respectively; financing sports ate $6.7 billion. Exchange costs subtracted a further $160 million. Purchases of property, plant, and system largely offset profits from maturities and sale of marketable securities and investments. Spend associated with financing targeted on treasury inventory and dividend payments.
After several years of sluggish growth, 3M is refocusing operations on its extra beneficial sectors via strategic divestitures, selective acquisitions, and cost-saving restructurings.
Bucking its long-walking starvation for acquisitions, the organization made no commercial enterprise purchases in 2018. That year the agency took cost-slicing measures that included promoting its Communication Markets Division and several personal protection product offerings primarily focused on noise, environmental, and heat strain monitoring. In the 12 months prior it offered its safety prescription eyewear business. The business enterprise also exited an oral care technology business in 2019. The organization previously signaled its purpose to focus on high-boom operations by lowering its publicity to the client and electronics markets over the last several years, selling off around 15 businesses.
3M made its first acquisition in years with its 2019 buyout of the technology commercial enterprise of M*Modal, a developer of cloud- and AI-based clinical speech recognition technology for electronic health records.
In 2019 3M reduced its number of running segments from 5 to 4 in efforts to take away operational inefficiencies. As part of that reorganization, the employer expects to cut 2,000 employees and decrease capital expenditures. The employer additionally sold its gas- and flame-detection business to Teledyne Technologies for $230 million in 2019. The business operates below the Oldham, GMI, Detcon, Simtronics, and Scott Safety manufacturers.
In 2017 3M announced a $2 billion acquisition of Scott Safety from Johnson Controls. The US-based business enterprise manufactures safety and protection devices like self-contained respiratory apparatus systems and gas and flame detection instruments. 3M also bought Elution Technologies, a Vermont-based producer of allergen test kits to enhance its Health Care business segment.