07.01.06
$3.5 Billion
Key Executives:
George W. Buckley, Chairman, President and CEO
Patrick D. Campbell, Sr. VP and CFO
Jay V. Ihlenfeld, Sr. VP, Research and Development
James T. Mahan, Sr. VP, Corporate Supply Chain Operations
Brad T. Sauer, Executive VP, Health Care Business
Inge G. Thulin, Executive VP, International Operations
William G. Allen, VP, Latin America and Canada
Herman E. Nauwelaerts, VP, Europe, Middle East and Africa
No. of Employees: 69,315
World Headquarters: St. Paul, MN
3M Healthcare was relatively down in 2005, with only a 3% jump in sales because of competitive price pressures and raw material price increases, after experiencing double-digit jumps in revenues for the medical arm of the St. Paul, MN-based conglomerate during the previous couple of years.
While its net sales increased 3% to $3.5 billion, its operating income grew by 8% and operating profit margin jumped by 28%.
The strongest areas, wound care products and the dental products segment, continued to get stronger in fiscal 2005. In the wound care products division, the Tegaderm brand was a major driver. In the dental segment, the ESPE Lava crown and bridges system helped to maintain 3M Healthcare’s honor of being the second largest supplier to the dental industry.
Last year, the company was going through a transition at the top of the executive wing. In December, the company named George W. Buckley as the new CEO; he succeeded interim CEO Robert S. Morrison, who had been at the job since July 2005. Morrison was called in to fill the top spot at 3M after former CEO W. James McNerney, Jr. left the company in June 2005 to take the top post at aerospace giant Boeing.
Buckley came to 3M from Brunswick Corporation, where he had served as CEO and chairman since June 2000. “George Buckley is a proven CEO with a terrific blend of strategic, business and analytical skills and an excellent record of driving both sales growth and operational efficiency in a wide range of global businesses,” said then-interim CEO Morrison. “His strengths complement perfectly 3M’s culture of innovation and operating effectiveness.”
In the first full quarter of his tenure, the Healthcare business remained steady with a 2% increase to $966 million. At that time, the company introduced its Littmann Electronic Stethoscope Model 3000, which reduces ambient noise—allowing healthcare professionals to pick up sounds that other stethoscopes miss. Regionally, the healthcare portion of 3M expanded in many high-growth emerging markets, including China and India.
Overall, the Healthcare division (which includes pharmaceuticals) also rose 3% to $4.4 billion. All seven businesses as a whole rose grew by 6% to $21.2 billion in revenue. The corporation’s profit was a healthy 7%, to $3.2 billion, in 2005.
The healthcare business is 21% of combined sales, the largest of the seven businesses and consistent with 2004 fiscal ratios with the other 3M businesses. Healthcare was just one of seven businesses in 2005; the remaining include Industrial; Display and Graphics; Consumer and Office; Electronics and Communications; Safety, Security and Protection Services; and Transportation.
In the dental area, 3M’s resin and filter technology produced an advanced ESPE Filtek Supreme Plus Universal Restorative product. The nanocomposite enables dentists to restore teeth to their natural shape and function while matching existing tooth color so closely that the restoration is virtually undetectable to the naked eye.
Starting in the first quarter of 2006, 3M combined the Industrial and Transportation segments.
In April and May 2006, respectively, 3M added to its Healthcare business with a pair of acquisitions in the West Palm Beach, FL-based OMNII Oral Phar-maceuticals, a manufacturer of differentiated preventative dental products, and the SBG GmbH, a Berlin, Germany-based developer of diagnosis related groups software for hospitals.
Key Executives:
George W. Buckley, Chairman, President and CEO
Patrick D. Campbell, Sr. VP and CFO
Jay V. Ihlenfeld, Sr. VP, Research and Development
James T. Mahan, Sr. VP, Corporate Supply Chain Operations
Brad T. Sauer, Executive VP, Health Care Business
Inge G. Thulin, Executive VP, International Operations
William G. Allen, VP, Latin America and Canada
Herman E. Nauwelaerts, VP, Europe, Middle East and Africa
No. of Employees: 69,315
World Headquarters: St. Paul, MN
3M Healthcare was relatively down in 2005, with only a 3% jump in sales because of competitive price pressures and raw material price increases, after experiencing double-digit jumps in revenues for the medical arm of the St. Paul, MN-based conglomerate during the previous couple of years.
While its net sales increased 3% to $3.5 billion, its operating income grew by 8% and operating profit margin jumped by 28%.
The strongest areas, wound care products and the dental products segment, continued to get stronger in fiscal 2005. In the wound care products division, the Tegaderm brand was a major driver. In the dental segment, the ESPE Lava crown and bridges system helped to maintain 3M Healthcare’s honor of being the second largest supplier to the dental industry.
Last year, the company was going through a transition at the top of the executive wing. In December, the company named George W. Buckley as the new CEO; he succeeded interim CEO Robert S. Morrison, who had been at the job since July 2005. Morrison was called in to fill the top spot at 3M after former CEO W. James McNerney, Jr. left the company in June 2005 to take the top post at aerospace giant Boeing.
Buckley came to 3M from Brunswick Corporation, where he had served as CEO and chairman since June 2000. “George Buckley is a proven CEO with a terrific blend of strategic, business and analytical skills and an excellent record of driving both sales growth and operational efficiency in a wide range of global businesses,” said then-interim CEO Morrison. “His strengths complement perfectly 3M’s culture of innovation and operating effectiveness.”
In the first full quarter of his tenure, the Healthcare business remained steady with a 2% increase to $966 million. At that time, the company introduced its Littmann Electronic Stethoscope Model 3000, which reduces ambient noise—allowing healthcare professionals to pick up sounds that other stethoscopes miss. Regionally, the healthcare portion of 3M expanded in many high-growth emerging markets, including China and India.
Overall, the Healthcare division (which includes pharmaceuticals) also rose 3% to $4.4 billion. All seven businesses as a whole rose grew by 6% to $21.2 billion in revenue. The corporation’s profit was a healthy 7%, to $3.2 billion, in 2005.
The healthcare business is 21% of combined sales, the largest of the seven businesses and consistent with 2004 fiscal ratios with the other 3M businesses. Healthcare was just one of seven businesses in 2005; the remaining include Industrial; Display and Graphics; Consumer and Office; Electronics and Communications; Safety, Security and Protection Services; and Transportation.
In the dental area, 3M’s resin and filter technology produced an advanced ESPE Filtek Supreme Plus Universal Restorative product. The nanocomposite enables dentists to restore teeth to their natural shape and function while matching existing tooth color so closely that the restoration is virtually undetectable to the naked eye.
Starting in the first quarter of 2006, 3M combined the Industrial and Transportation segments.
In April and May 2006, respectively, 3M added to its Healthcare business with a pair of acquisitions in the West Palm Beach, FL-based OMNII Oral Phar-maceuticals, a manufacturer of differentiated preventative dental products, and the SBG GmbH, a Berlin, Germany-based developer of diagnosis related groups software for hospitals.