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Unformatted text preview: 3M Financial Report 10/08/2011 3M Company (3M) is a diversified technology company with a presence in various businesses, including industrial and transportation, healthcare, display and graphics, consumer and office, safety, security and protection services, and electro and communications. The Company is a diversified global manufacturer and marketer of a variety of products. 3M manages its operations in six business segments: Industrial and Transportation; Health Care; Display and Graphics; Consumer and Office; Safety, Security and Protection Services, and Electro and Communications. The Company’s products are sold through numerous distribution channels, including directly to users and through numerous wholesalers, retailers, jobbers, distributors and dealers in a variety of trades in many countries worldwide. 3M was founded in 1902 by five businessmen, in a small town in Minnesota called Two Harbors. The business was built on the idea of mining a mineral deposit that was used as an abrasive. The mining of this mineral deposit was not a very lucrative business and the company soon relocated to the nearby town of Duluth, where it focused on sandpaper products. In 1910 the company moved to St. Paul, Minnesota with the financial help of Lucius Ordway. The company struggled for the next few years until they had a technical break through and launched a new product branded Three-M-ite, a new abrasive cloth used for cutting metal, in 1914. This product was the main cause for their financial turnaround and helped make it possible to pay their first dividend of 6 cents per share in 1916. Since that first dividend, 3M has paid dividends on a quarterly basis without interruption. Sales soon topped the $1 million mark by 1919, with a net income of 32%. Today Minnesota Mining and Manufacturing produces over 60,000 products and has operations in more than 63 countries. They sell their products to 200 countries around the world. The company employs over eighty thousand people throughout the world. 3M employees are encouraged to rely on the creative thinking of each other to develop new manufacturing processes and invent new products to solve customers' problems. At 3M, it is a 3M Financial Report 10/08/2011 requirement to be innovative. The company is committed to research and development, and because of this, 3M has quotas it sets for itself to meet every year: a minimum of 30% of the company's revenues must be generated from products introduced within the past four years. 3M’s financial condition and liquidity are strong. Various assets and liabilities, including cash and short-term debt, can fluctuate significantly from month to month depending on short-term liquidity needs. Working capital (defined as current assets minus current liabilities) has steadily increased in the past three years from $3.75 billion in 2008, to $5.89 billion in 2009, and to $6.12 billion in 2010. Working capital was lower primarily due to increases in short-term debt and decreases in cash, cash equivalents and marketable securities, which were partially offset...
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This note was uploaded on 03/07/2012 for the course BUSN 1000 taught by Professor Web during the Spring '12 term at Webster.
- Spring '12