3M公司 (MMM) 3M Corporation (MMM) 2005年年度報告「NYSE」.pdf

《3M公司 (MMM) 3M Corporation (MMM) 2005年年度報告「NYSE」.pdf》由會員分享，可在線閱讀，更多相關《3M公司 (MMM) 3M Corporation (MMM) 2005年年度報告「NYSE」.pdf（108頁珍藏版）》請在三個皮匠報告上搜索。

1、2005 Annual Reportunique strengths,ingenious solutions2005:Another Year of Record ResultsNet sales:$21.2 billion,up 5.8%Operating income:$5.0 billion,up 9.4%Net income:$3.2 billion,up 7.0%Earnings per share:$4.12,up 9.9%Dividends per share:$1.68,up 16.7%A Global,Diversified Technology Company3M is f

2、undamentally a science-based company.We producethousands of imaginative products,and were a leader in scoresof markets from health care and highway safety to officeproducts and optical films for LCD displays.Our success beginswith our ability to apply our technologies often in combination to an endl

3、ess array of real-world customer needs.Of course,all of this is made possible by the people of 3M and theirsingular commitment to make life easier and better for peoplearound the world.Table of Contents2 Letter to Shareholders5 Ingenious Solutions6 Adhesive Technology8 Advanced Materials Technology1

4、0 Light Management Technology12 Microreplication Technology14 Nonwoven Materials Technology16 3M in the Community18 3M at a Glance22 Board of Directors/Corporate Officers/Executives24 Financial SummaryIBC Shareholder Informationuniquestrengths.What do Scotch-BriteSponges,3MRespirators,FiltreteFilter

5、s andThinsulateInsulation have in common?They,along with dozens of other3M products,draw on nonwoven materials technology one of more than40 3M technology platforms.These technology platforms are the threadthat weaves together our diverse businesses.It is the strength offered bytheir interlocking an

6、d sometimes overlapping nature that sets us apart from other companies and constantly unlocks new opportunities for growth.Whats remarkable is not just the breadth of our technologies,but ourability to combine them in unique ways.In countless combinations,3Mtechnologies from adhesives and advanced m

7、aterials to light manage-ment and microreplication come together to create a steady stream ofgroundbreaking products for the worlds ever-changing marketplace.Adhesives1RfReclosableFasteners4AbAbrasives5DdDrug Delivery6MrMicroreplication7PePredictiveEngineering&Modeling8RpRadiationProcessing9AcAcoust

8、ics10DmDisplayMaterials11NmNonwovenMaterials13PmPolymer MeltProcessing14SmSpecialtyMaterials15AsApplicationSoftware16DoDental&OrthodonticMaterials17FiFilms18FsFiltration,Separation,&Purification19IrImmuneResponseModifiers20MdMedical DataManagement21MiMicrobialDetection&Control22PcPrecisionCoating23P

9、oPorous Materials&Membranes24SuSurfaceModification25CeCeramics26EpElectronicPackaging27FlFluoromaterials28ImImaging29IsIntegratedSystems Design30MeMetal MatrixComposites31MoMolding32PdParticle&DispersionProcessing33CpChemicalPower Sources36FcFlexibleConverting&Packaging37FoFiber Optics38IpInks&Pigme

10、nts39AdvancedMaterials2BiBiotech3LmLightManagement40PrProcess Design&Control34WoWoundManagement35PpPrecisionProcessing41VpVacuumProcessing42NtNano-technology12to our shareholdersWhen I joined 3M in December of last year,I knew I was becoming part of oneof the worlds finest companies.Everything I hav

11、e observed and experiencedhere has served to confirm that initial view.In fact,I am more convinced thanever that 3M is indeed an excellent company,but more importantly,a verystrong company with the potential to become truly great in all aspects,andespecially in delivering sustainable and superior re

12、turns to our shareholders.unique strengthsingenious solutions23Ms 2005 solid performance demonstrates the companys broad strengthwhile auguring the promise of 3Ms future.For the year,sales reached$21.2 billion,an increase of 5.8 percent over 2004.We generated$3.2billion of net income,or$4.12 per sha

13、re an EPS increase of 9.9percent.Operating profit margins grew nearly one percentage point to 23.7 percent.I am pleased that our local-currency sales growth was broad based,drivenby increases of 9.3 percent in Industrial,6.9 percent in Safety,Securityand Protection Services,5.0 percent in Transporta

14、tion,and 4.2 percent inElectro and Communications.I expect these figures to gather upwardmomentum in the coming years as we focus on the next element of ourevolution as a company growth.All in all,I consider 2005 to have been a solid year for 3M.That said,our efforts going forward will be focused on

15、 increasing 3Ms growthmomentum via several paths,including:A renewed focus on innovation and new products.Continued international expansion and penetration with greateremphasis on localization.We already generate more than 60 percentof our sales from outside the United States,with more than 20 perce

16、nt coming from emerging markets.Increased focus on serving our customers better.Thoughtful building of the 3M brand,while using complementarybrands to grow market share,especially internationally.A clear acquisition strategy driven by a determination to quickly add value.We will pursue these avenues

17、 while maintaining the strong operatingdiscipline exhibited by 3Mers over recent years.George W.BuckleyChairman of the Board,President and Chief Executive Officer0504030201$21.2$20.0$18.2$16.3$16.1Net Sales(billions)05040302010504030201$1.68$1.44$1.32$1.24$1.20Dividends Per Share(dollars)05040302010

18、504030201$4.12$3.75$3.02$2.50$1.79Earnings Per Share(dollars)0504030201Organic growth through technology.Of all our approaches togrowth,the greatest of these is organic growth through innovation 3Msprimary and defining strategy.There is no question that 3Ms technologicaland scientific capability is

19、not only world class,but world leading.3Mspre-eminence in such technologies as adhesives,materials science,lightmanagement,microreplication and nonwoven materials is welldocumented and well known.Less well known is 3Ms magnificentprocess capability the ability to not only develop unique products,but

20、also to manufacture them efficiently and consistently around the world.These two elements 3Ms technology portfolio and process capability are at the core of 3Ms unique business model and willshape our growth for the foreseeable future.The challenge is to unlock and unleash 3Ms technological creativi

21、ty andprowess,and transform ideas into products and ultimately into sustainablegrowth and profits streams.Albert Einstein said that“imagination ismore important than knowledge.”While we will invest increased energyand resources in commercialization,marketing and new product launches,we will not forg

22、et what makes 3M great imagination.Confidence in the 3M team.My optimism about 3M is rooted in myconfidence in the people of 3M.Since joining the company,I have beendeeply impressed with the professionalism and passion of 3Mers aroundthe world.It is really quite amazing to see the depth of it.In eve

23、ryfunction and in every country,I see a renewed commitment to growththrough innovation and a renewed commitment to helping our customerssucceed.Those things are vital for our success.Our people realize thatgrowth is more a result of passion and creativity than purely of process.And they are eagerly

24、and enthusiastically getting on with the business of growing the company and increasing shareholder value.Speed and simplicity.Everyone at 3M recognizes that we live in anera where speed and simplicity trump bureaucracy and complexity.Certain facets of 3M are necessarily complex,but I know we have a

25、mpleopportunity to improve both speed and efficiency.We are moving forward with a conscious focus on streamlining and supercharging bothour decision making and our operations.unique strengthsingenious solutions4Similarly,I am a strong advocate of clear,short lines of sight to all of ourconstituencie

26、s,and especially to customers.All of our businesses willbenefit from a close examination of the way we go to market and the waywe service our customers.The company can,over time,realize significantgains from improvement in these key areas.Ethics and integrity.3M is a dynamic and changing enterprise

27、in manyways.Among the elements that will not change,however,is 3Mscommitment to achieving results ethically,with honor and with integrity.The trust of our customers,employees and shareholders is of paramountimportance to me and to the entire leadership of 3M.We will continue to dedicate ourselves to

28、 operating in the right way,and any behaviors thatblemish our brand or tarnish 3Ms hard-earned reputation will not betolerated.Vigilance is always required in this area.Creating the future.At the top of the list of reasons that I left awonderful company to join 3M is the tremendous promise of 3Ms fu

29、ture.Many would take the path of least resistance and wait for 3Ms promisingfuture to arrive.But I am a believer instead in the George Bernard Shawprinciple that“the people(companies)who get on in this world are those people(companies)who look for the kind of circumstances theywant,and,if they cant

30、find them,go out and create them.”So,I amexcited to be part of a team committed to creating that future not in the“long term,”but committed to making the promise of the future a realityas soon as we can.I am convinced that through the imagination of ourpeople,combined with the dedication and hard wo

31、rk for which 3Mersare known,we can drive the company to new levels of success.That is mycommitment and the commitment of all 3Mers.In closing,I would like to thank 3M Board member Bob Morrison,whoserved as interim chairman of the board and chief executive officer,forhis outstanding leadership over t

32、he six months leading up to myappointment.Bob helped keep 3M on course after the change in 3Mleadership last July and continues to make many important contributionsto our company.George W.BuckleyChairman of the Board,President and Chief Executive OfficerFeb.13,2006unique strengthsingenious solutions

33、5.ingenious solutionsVirtually anywhere you go,3M technologies are at work making life easierand better for people around the world.Youll find our technologies andproducts in homes,offices,hospitals,dental offices,manufacturing facilities,cars,aircraft,traffic signs,LCD displays and countless other

34、places.Drawingon more than 40 technology platforms,our people use their imagination todevelop products that transform existing industries and create entirely newones.Learn about five 3M technology platforms that are driving growth and keeping us at the forefront of our markets in the pages that foll

35、ow.unique strengthsingenious solutions6Ad1stayingpowerRemember when hanging a picture meant using a metal hanger andnail,and then having to patch the nail hole after moving the picture or taking it down?3M invented the solution reviving the productcategory and giving us a new path for growth.Command

36、AdhesiveProducts hold pictures,plaques,fixtures and other objects to the wallwithout nails and mechanical fasteners.When its time for a change,Command adhesives lift off easily and cleanly,leaving walls in pristinecondition.No wonder theyve transformed the way people decorateand organize living room

37、s,dens,bathrooms,kitchens,dorm roomsand more.Command adhesive products are just one of thousands of imaginative3M products based on adhesive technology.We use this platform to produce products that span the full spectrum of stickiness withapplications in countless markets.Post-itProducts another 3M

38、invention and today a universalcommunication tool stick practically anywhere,yet can berepositioned time and again.On the other end of the adhesionspectrum,3MScotch-WeldStructural Adhesives are so strongtheyre used instead of metal fasteners in the production of airplanes,Adhesives used to bond airc

39、raftcomponents must stand up to rigorousconditions.3MScotch-WeldStructural Adhesives have earned their wings,proving their durability incommercial and military craft for nearly40 years.The adhesives strength iscomparable to welding.helping make aircraft lighter and more fuel-efficient.3MVHBTapestake

40、 the place of mechanical fasteners in truck body assembly,buildingconstruction and more,allowing greater design flexibility and reducingthe potential for corrosion.Our adhesives make the rounds in the health care industry,too.3MTegadermTransparent Dressings cover and protect I.V.sites andwounds.They

41、re the No.1 choice of health care professionals globallyand are sold in more than 60 countries.Pharmaceutical companies useour transdermal drug delivery systems to deliver medications throughthe skin.And 3MESPEAdperAdhesives make it easy for dentalprofessionals to restore and seal teeth,as well as t

42、reat sensitive teeth.In the electronics industry,3MForm-in-Place Gaskets are widely used in computer hard disk drive covers.This resilient,ultra-clean,adhesive-based material seals out contaminants,while also helping toincrease manufacturing productivity.The applications for 3M adhesive technology a

43、re everywhere.In fact,weuse this technology in approximately 40 percent of our products.Its akey differentiator for our company and a major engine of growth.Decorating and organizing projects are a snap with CommandAdhesiveProducts.This popular family of hooks,hangers,clips and poster strips holdsob

44、jects strongly,yet comes off cleanly,providing the ideal solution for a widearray of mounting tasks.3MForm-in-Place Gaskets,used toseal computer hard disk drive covers,meet the demanding performance and cost requirements of the hard disk drive industry.unique strengthsingenious solutions8Am2the shap

45、eofthingstocomeFrom hybrid composites to microstructures that are visible onlythrough powerful microscopes,the inventive minds at 3M work with a remarkable palette of advanced materials,creating new-to-the-worldformulations and proprietary products.Our inventions solve age-oldproblems and create new

46、 opportunities for customers across everymarket that 3M serves.In the energy industry,we are a leading manufacturer of membraneelectrode assemblies(MEAs)for fuel cells.The 3M MEAs consist of a microstructured,multilayered thin composite that turns hydrogenand oxygen into electricity.3M is working wi

47、th the U.S.Department of Energy to advance this important technology,combining more than20 3M technology platforms.Our MEAs already are widely used in fuelcell systems to provide reliable energy for backup power,and theyhold promise in the electronics,automotive and other industries.Thenext generati

48、on of 3M MEAs will contain thin-film catalysts offeringlonger life,lower cost and a better source of clean power perhaps for your next car or portable electronic device.The electrical power industry is turning to our advanced materialstechnology to help reduce the threat of brownouts and blackouts.A

49、breakthrough 3M development 3MAluminum Conductor CompositeReinforced can provide twice the transmission capacity of conven-tional conductors.Developed with support from the U.S.Departmentof Energy,the new conductor currently is in use,or has been selectedfor use,by six major utilities across the Uni

50、ted States and is attractingwidespread interest globally.3MESPEFiltekSupreme PlusUniversal Restorative is a hit with bothdentists and patients due to its strengthand aesthetics.3MAlumina-based Glass and Glass Ceramics recognized as one of the most innovative technologies of 2005 by R&D Magazine is a

51、notherbreakthrough.The outstanding properties of this new kind of glassformulation hold promise in an array of large and growing markets fromindustrial cutting tools to dental restoratives.In the dental field,3Ms resin and filler technology has produced a majoradvance that everyone will appreciate:3

52、MESPEFiltekSupreme PlusUniversal Restorative.This unique nanocomposite enables dentists torestore teeth to their natural shape and function,while matching existingtooth color so closely that the restoration is virtually undetectable to thenaked eye.The result:gleaming smiles that last.Our advanced m

53、aterials research will continue to be a launch pad forcountless new products and applications materializing in ways we can only imagine today.Consisting of a microstructured,multi-layered thin composite that turnshydrogen and oxygen into electricity,3MMembrane Electrode Assembliesprovide reliable en

54、ergy for backup powerand hold promise in the electronics,automotive and other industries.Drawing on 3M expertise in metal matrixcomposites,ceramics and nanotechnology,the 3MAluminum Conductor CompositeReinforced can provide twice the electricalcarrying capacity of conventional conduc-tors,helping to

55、 reduce the threat ofbrownouts and blackouts.The conductorrepresents one of the most significantadvances in electrical power transmissionin years.Lm40brighter ideas Todays“brighter,lighter”electronic displays were hard to imagine evena decade ago.Look closely and youll see that 3Ms light managementt

56、echnology figures largely in these displays.Watching TV or surfing the Web?If those Olympic ski jumpers looked ready to land in yourlap,or that home page on your notebook computer seemed vividlyaglow,its almost certain that VikuitiDisplay Enhancement Filmsplayed a part.These industry-leading films c

57、omposed of hundreds of individual layers are used in nearly every type of electronic devicewith a liquid crystal display.Think LCD TVs,notebook computers,cellphones,PDAs,MP3 players and portable gaming devices.Combiningmultilayer film,optical coating,nanotechnology and other 3M tech-nologies,our fil

58、ms help to produce the color and clarity of light seenbefore only in nature.Time to renew your drivers license?You can smile and be a lot lessconcerned about the security of the license.3MConfirmLaminatewith Floating Image makes it virtually impossible to duplicate or tamperwith drivers licenses,pas

59、sports and other identification cards.Thestates of New York and Minnesota recently adopted Confirm laminatefor use in their drivers licenses,and Australia is using it in thatcountrys passports.Drivers licenses,passports,badges andother identity documents are more secure,thanks to 3MConfirmLaminatewi

60、th Floating Image.Constructed usingproprietary laminate,optical and adhesivetechnologies,the product offers a highlevel of security against counterfeiting,alteration,duplication and simulation.Whether at work or on the go,people are easier to see at night with 3MScotchliteReflective Material.Firefig

61、hters,lawenforcement officers,road construction crewsand other workers wear Scotchlite reflectivematerial on the job,and designers incorporateit into garments,footwear,backpacks andmore to help make adults and children morevisible to motorists.unique strengthsingenious solutions11Driving in the rain

62、?Traffic accidents are three times more likely in wet,rainyconditions.At such times,it doesnt take long for pavement markings tolose their reflectivity,making driving all the more challenging.Now,3M hasdeveloped a revolutionary technology featuring innovative optics thatkeeps pavement markings brigh

63、t even on wet roadways.Its yet anotherapplication of our amazing light management technology.Walking or jogging at night?3MScotchliteReflective Material appliedto apparel,backpacks,footwear,safety garments and more helps makepeople more visible to drivers.Want to increase the energy efficiency of yo

64、urhome?3MScotchtintWindow Films block up to 99 percent of the sunsultraviolet rays.Our newest version employing 3M multilayer films isoptically clear,allowing the sunshine in,while keeping out the heat-producingeffects of the sun.Through imaginative,groundbreaking products,3M lightmanagement technol

65、ogy helps improve peoples lives in many ways.It isilluminating work.Built into LCD TVs,VikuitiDisplayEnhancement Films help increasescreen brightness,enhancing viewingenjoyment.Drawing on several 3Mtechnologies,these films also improvethe visual appearance of many otherelectronic displays from noteb

66、ookcomputers and cell phones to MP3players and PDAs.Mr7invisible ingenuity See that traffic sign through the fog?The dazzling sign on thatbuilding?The bright,glare-free lighting in the gymnasium?Roads are safer,graphics easier to apply and lighting brighter because of3Ms microreplication technology.

67、Microreplication is the creation of tiny,precisely shaped structuresarranged to alter the physical,chemical or optical properties of amaterial.3Ms unique strengths allow us to explore and apply this technologyacross our businesses and in ways you might not imagine.Consider microreplication technolog

68、y applied to road signs.Eachsquare inch of 3MDiamond GradeDG3Reflective Sheeting containsthousands of microreplicated prisms,returning nearly twice as muchreflected light from the signs to drivers as the brightest materialspreviously available.So you wont miss that detour.Combining microreplication,

69、adhesiveand other 3M technologies,3MDiamond GradeDG3ReflectiveSheeting helps improve roadway safetyby making traffic signs highly visible,even at night.unique strengthsingenious solutions13In the automotive industry,patented 3MPaint Replacement Film eliminatesthe need for paint on door pillars,windo

70、w sashes and other body trim.Owing to a combination of microreplication and adhesive technologies,these films used by automakers worldwide can be respositioned withthe flick of a wrist.A companion product 3MControltacPlus GraphicFilm with ComplyAdhesive is transforming the graphics industry bymaking

71、 it faster and easier to apply large,full-color graphics to buildingsand commercial vehicles,saving customers time and money.Microreplication is a marvel when combined with 3Ms other technologyplatforms,too.Think high-performance abrasives,and fasteners thatenable diapers to hold more securely and c

72、omfortably.Microreplicationalso can be used to create channels that direct fluids across a surfaceusing capillary action,the way a tree takes in water an application withenormous potential for biotechnology products.And this technology evengives home windows the look of expensive beveled glass.Total

73、 3M sales attributed to microreplication applications:about$1.5 billionand growing.A big number for such a tiny technology.Painting auto body trim,such as doorpillars and window sashes,can be acumbersome and costly process for auto-makers.3MPaint Replacement Filmsimplifies the job by eliminating the

74、 need for paint.Our film is easy to applyand durable,while also delivering aconsistent appearance vehicle to vehicle.3MTrizactAbrasives help improvequality and reduce costs in a variety of industrial applications whereconsistent,precision finishes arerequired on metals,plastics,paintedsurfaces and o

75、ther substrates.The three-dimensional,abrasive-filledstructures based on microreplicationtechnology wear away continually,exposing fresh abrasive for a fast andconsistent cut rate.Nm13thefabricofinventionTo 3M,furnace filters were a product category crying for reinvention.Originally designed simply

76、to protect furnace fans and motors,ordinary fiberglass filters did little to remove particles from the air inhomes until our scientists seized the opportunity and createdFiltreteFilters.These high-efficiency filters helped transform theindustry and are staples for homeowners who want to help reduced

77、ust,pet dander,mold spores,smoke and smog particles in theirindoor air.Filtrete filters help improve air quality in millions of homes in the United States,Canada and other countries.Filtrete filters are based on 3M nonwoven materials technology another technology thats applied across our businesses,

78、in hundredsof ingenious products.Elsewhere in homes,Scotch-BriteCleaningProducts used in more than 80 countries take the elbow grease Combining expertise in blown microfibercapabilities and filtration technologies,3MParticulate Respirators aregovernment certified for use against abroad range of airb

79、orne particles.Part ofa broad line of 3M safety products,theserespirators also are lightweight and easyto breathe through,making themcomfortable to wear.No matter how much youd like to,youcant prevent every scrape,bump andbruise.NexcareProducts frombandages and other first-aid supplies toskin care p

80、roducts help people get onwith their lives.This popular and growingline of products incorporates nonwoven,adhesive and other 3M technologies.*Compared to BAND-AIDand CURADSheer and Plastic Bandagesunique strengthsingenious solutions15out of tough cleaning jobs.Restaurants use Scotch-Brite products t

81、o keepfood-preparation areas clean.Scotch-Brite products also are extensivelyused in industrial markets,where they perform a variety of surface condition-ing tasks essential to the manufacturing process.Workers use 3MRespirators for safety and comfort.Our respirators aregovernment certified for use

82、against a wide range of airborne contaminants.ThinsulateInsulation another nonwoven product offers warmth withoutbulk.Its incorporated into jackets,boots,gloves,sleeping bags and more.In fact,world-renowned polar explorer Will Steger uses Thinsulate insulationon his Arctic expeditions.A companion pr

83、oduct ThinsulateAcousticInsulation helps reduce road noise inside vehicles sold worldwide.Yetanother 3M product based on nonwoven technology 3MNomadFloorMatting helps keep floors cleaner longer.Nonwoven materials technology is spurring invention and driving 3Mgrowth in other important markets,too.Th

84、ink better-performing diaperelastics,medical tapes,bandages,surgical masks and drapes,floor pads,vibration control products,oil sorbents,filtration products and more.Intotal,nonwoven materials technology is used in 3M products with annualsales of more than$3 billion and counting.Used in forced-air h

85、eating and coolingsystems,FiltreteFilters contributeto cleaner indoor air by attracting and capturing dust,smoke and other microparticles that ordinary fiberglassfilters might miss.unique strengthsingenious solutions163M atwork in the community3M has a proud history of supporting communities where o

86、ur employees live and work.Our active involvement includes cash grants by 3M and the 3M Foundation,extensive volunteerism by employees and retirees,and donations of 3M products.This generous support is extended to communities both in the United States and around the world.Community giving.In 2005,3M

87、 and the 3M Foundation contributedmore than$39 million in support of social services,education andthe environment.Following 2005s devastating natural disasters,3M moved quickly to provide products and cash for front-line disasterrelief and long-term recovery efforts.3M,the 3M Foundation,3Memployees

88、and retirees rallied with donations of nearly$14 million to support communities in crisis throughout the year.Donations fortsunami relief efforts in Southern Asia and Africa totaled$4.5 million.3Ms 2005 hurricane-relief donations following Hurricanes Katrinaand Rita in the Gulf Coast totaled more th

89、an$9 million the largestsuch gift in our companys history.In 2005,the 3M Foundation alsoallocated funds for earthquake relief in Pakistan and India.In the United States,3M is a major supporter of the United Way.In2005,pledges to this organization by 3M employees,retirees andthe 3M Foundation reached

90、 a record high for the fourth consecutiveyear.Together,these pledges totaled$8.3 million money that willbenefit 75 United Ways and the millions of individuals they serve in3M communities across the United States.As a result of our tremendous support,the United Way of Americapresented 3M with its hig

91、hest tribute the Spirit of AmericaAward.This prestigious national award is given annually to the companyjudged to have made the most comprehensive commitment companywide to strengthening communities.Criteria includecorporate and employee community investment,communityleadership and employee engageme

92、nt in their communities.Volunteers play a vital role in 3Ms community outreach efforts.To acknowledge their good work,the 3M Volunteer Match providesmoney to nonprofit organizations where our employees and retireesvolunteer.During the year,this program provided funds to 567 schoolsand nonprofit orga

93、nizations in the United States.Over the past sixyears,nearly$1.6 million has been distributed in the names of 7,9003M volunteers through the Volunteer Match.Our support of education emphasizes math and science.We reachstudents and teachers from elementary schools through post-secondary institutions.

94、3Ms Ingenuity Grants recognize exceptional math,science andeconomics teachers in elementary and middle schools.These grants,of up to$3,500 per person,went to teachers in 65 schools in ninestates in 2005.Additional grants supported teacher development and advanced teaching methods to help raise stude

95、nt achievementand increase the number of college-bound students,especially fromlow-income families.On the higher-education front,3M Foundation grants support technicalschool and college programs that foster an interest in technical andbusiness careers.In 2005,$7.6 million was earmarked for programsa

96、t U.S.colleges,universities and technical schools.3Ms support of education includes giftsto institutions of higher education.In2005,$7.6 million was earmarked forprograms at U.S.colleges,universities and technical schools to better preparestudents for technical and businesscareers.unique strengthsin

97、genious solutions17Our progress toward sustainability.3M has long recognizedthat the principles of sustainable development are important to acompanys long-term success.And were recognized as a corporateenvironmental leader.In keeping with that tradition,during 2005 the 3M Foundation gave$3 million t

98、o Conservation International to support the restoration of degraded forests located in the southwestern provinces ofSichuan and Yunnan in China.We believe reforestation benefits theenvironment and supports local communities.Globally,thisreforestation will help address climate change.We continue to m

99、ake good progress in reducing our environmentalfootprint.Between 1990 and 2000,we reduced volatile organic airemissions,indexed to net sales,by 93 percent worldwide.Since2000,weve reduced these emissions by an additional 61 percent,exceeding our target.We reduced waste,indexed to net sales,by 30perc

100、ent from 2000 to 2005 again,exceeding our target.We also continue to significantly improve our energy efficiency,which conserves natural resources and reduces greenhouse gasemissions.We reduced energy use,indexed to net sales,by 27percent over the period 2000 to 2005.During 2005,3M employeescomplete

101、d 288 energy-related projects,resulting in annual energysavings of$7.1 million.We achieved a 39 percent reduction in worldwide greenhouse gasemissions over the period 1990 to 2004.In the United States alone,we reduced greenhouse gas emissions by 30 percent from 2002through 2004.3M is a member of the

102、 U.S.Environmental ProtectionAgencys(EPA)Climate Leaders program,a voluntary industry-government partnership that encourages companies to developcomprehensive,long-term climate-change strategies.During 2005,3M received the EPAs 2005 Climate Protection Award for our work in reducing greenhouse gas em

103、issions both in 3M operations and for our customers.We also received theENERGY STARSustained Excellence Award from the EPA and theU.S.Department of Energy.This award recognizes continuousimprovement in energy management.2005 also marked the 30thanniversary of our pioneering PollutionPrevention Pays(

104、3P)program,which is designed to find ways toavoid the generation of pollutants.Since 1975,more than 6,000employee-driven 3P projects have prevented the generation of morethan 2.5 billion pounds of pollutants and produced first-year savingsof more than$1 billion.In recognition of 3Ps success,the prog

105、ramreceived the National Pollution Prevention Roundtables 2005 MostValuable Pollution Prevention Award.The roundtable is composed of the nations pre-eminent pollution-prevention experts.Our Life Cycle Management process is applied to all new productson a worldwide basis.Life Cycle Management takes e

106、nvironmental,health and safety issues into account at every stage of a 3M productslife cycle from design and manufacturing through customer useand disposal.And at every stage,Life Cycle Management is used toguide decisions.In recognition of our proactive corporate policies and practices inmanaging t

107、he economic,environmental and social aspects of doingbusiness around the world,3M was selected for inclusion in the2005 Dow Jones Sustainability Index.This is the sixth straight yearthat we have been selected and the fifth consecutive year that wewere named the leader in our industry group.Reflectin

108、g our commitment to sustainability,we now are setting new corporate environmental targets that will further reduce ourenvironmental footprint through 2010.In 2005,3M was the recipient of twoprestigious national awards.We receivedthe United Way of Americas Spirit ofAmericaAward for our comprehensivec

109、ommitment including generousdonations of time and money byemployees and retirees to strengtheningcommunities.We also received theENERGY STARSustained ExcellenceAward from the U.S.EnvironmentalProtection Agency and the U.S.Departmentof Energy for continuous improvement inenergy management.The world o

110、f 3M Every day,3M people find ways to make life better and easier forpeople around the world.We increase speed and efficiency by sharing technologies,manufacturing operations,brands and other resources across our businesses and geographies.Our businesses produce innovative products,hold leading mark

111、et positionsand generate solid returns on investment.unique strengthsingenious solutions18Consumer and Office Business(Millions)20052004%changeNet sales$2,986$2,8614.4%Operating income$576$5426.3%Who we are With powerful brands,innovativeproducts and a global presence,we make life easierand more pro

112、ductive for consumers and officeworkers around the world.Our brands includingScotch,Post-it,Scotch-Brite,Scotchgard,O-Cel-O,Filtrete,Commandand Nexcare aresynonymous with quality and value.Youll find ourproducts at mass merchandisers,office superstores,contract stationers,home improvement andhardwar

113、e stores,membership clubs,grocery and drug stores,and other retailers.2005 Highlights Increased operating profit margins to 19.3 percent.Received major recognition from Wal-Mart,OfficeDepot,Staples,Inc.,S.P.Richards Co.,CorporateExpress and other customers.Also received theManufacturer of the Year A

114、ward from the OfficeProducts Wholesaler Association;the European OfficeProducts Award;the Vendor of the Year Award fromthe hardware and home improvement industry;and the 2005 Cause Marketing Silver Halo Award for the nations best health-related campaign for oursupport of breast cancer awareness and

115、research.Further strengthened our brands with newproducts combining strong functionality and stylishdesign.Examples include the ScotchContour TapeDispenser,ScotchStretchy Tape,the ScotchMasking Tape Applicator,ScotchGlugulsGlueSticks,plus new varieties of Scotch-BriteSponges,O-Cel-OSponges and Nexca

116、reBandages.Continued to extend our brands into adjacentmarket segments.Recent brand extensions includePost-itPicture Paper and Scotch-BriteSuper-ClingCleaning Products.(Millions)20052004%changeNet sales$3,558$3,4164.2%Operating income$1,159$1,133 2.3%Who we are Drawing on 3Ms technology platforms,we

117、 provide products that people around the world relyon every day.Our industry-leading VikuitiDisplayEnhancement Films do amazing things with light,making LCD TVs brighter,and the images on notebookcomputers,cell phones,PDAs and other electronicdevices easier to see under a wide range of lightingcondi

118、tions.Our innovative reflective materials maketraffic signs more visible day or night and in harshweather,contributing to the safety of both drivers andpedestrians.And our eye-catching,durable graphicshelp companies promote their businesses andthereby stand out from the competition.2005 Highlights C

119、ontinued to expand the horizons of our VikuitiDisplay Enhancement Films,with new applications in MP3 players,portable gaming devices and otherpopular consumer electronics products.Announced plans to build an LCD optical filmmanufacturing facility in Poland to support the fast-growing LCD TV market i

120、n Europe and enhanceservice to customers there.Introduced 3MDiamond GradeDG3ReflectiveSheeting for highway signs.This breakthroughproduct based on 3M microreplication technology offers unparalleled brightness,making it theoptimal signing material for todays challengingdriving environment.Added 3MDig

121、ital Signage providing consulting,hardware,software and network managementsolutions for in-store networks of electronic displaysand interactive kiosks to our family of 3M brand and Scotchprint brand graphics,which are synony-mous with quality in graphics markets worldwide.Continued our record of sal

122、es and profit increasesand achieved an operating profit margin of 32.6percent,despite lower demand for lens systems used in CRT rear-projection televisions,and thephaseout of our commercial videotape business.(Millions)20052004%changeNet sales$2,333$2,2244.9%Operating income$463$34235.4%Who we are W

123、e turn 3M technology into solutionsfor customers in electrical,electronics andcommunications markets around the world.Ourproducts help customers connect,clean,polish,insulate,protect,finish and test electrical,electronics and communications pathways;storeenergy;and transmit data,information and idea

124、s.As a result,we contribute to reliable sources ofelectrical power,high-performance electronicdevices,and speedy and dependable telecommunications networks globally.2005 Highlights Increased operating income 35.4 percent and operating profit margins to 19.8 percent.Posted strong growth in our core e

125、lectronics and electrical products businesses.Formed the 3M Electronics Market,an organizationthat provides global electronics customers a singlepoint of entry for all their dealings with 3M.Completed the acquisition of Siemens Ultrasounds flexible circuit manufacturing operation in California,expan

126、ding our flexiblecircuits offering into the medical market.Continued to grow rapidly in emerging markets,including Eastern Europe and Asia,particularly China.unique strengthsingenious solutions19Electro and Communications BusinessDisplay and Graphics Business(Millions)20052004%changeNet sales$4,373$

127、4,2303.4%Operating income$1,215$1,1238.2%Who we are Were a$4 billion-plus provider ofmedical and surgical products,dental and orthodonticproducts,health information systems,pharmaceuticals,and other health care products.Drawing on 3Ms richtechnology base,we help improve the quality of careprovided b

128、y health care professionals throughout theworld,while also helping make the delivery of patientcare more affordable.2005 Highlights Increased operating income 8.2 percent and operating profit margins to 27.8 percent.Achieved continued solid growth in our medicaland surgical,dental and orthodontics,a

129、nd healthinformation systems businesses.Further strengthened our leading 3MTegadermbrand,driven by the development of innovative newwound care products based on breakthrough 3Macrylic polymer technology and the rebranding ofseveral existing products.Our newest offeringsextend our presence to the adv

130、anced wound caremarket a large and growing segment.Capitalized on the growing use of digitaltechnology in dentistry with the 3MESPELavaCrowns and Bridges System.This innovative systemoffers dental laboratories a more efficient way ofproducing dental restorations.Patients and dentistsbenefit with a h

131、igh-strength,highly aesthetic andmetal-free treatment solution.Introduced the 3MLittmannElectronicStethoscope Model 3000,which uses proprietarytechnology to reduce ambient noise,allowing health care professionals to pick up sounds thatother stethoscopes miss.Continued to expand our footprint in Chin

132、a,Russia,India,Brazil and other high-growth emerging markets.Received a key government health informationsystems coding and compliance contract.This effortwill measure the quality of medical care provided tomilitary personnel and their families and ensurecost savings for the U.S.Department of Defens

133、e.(Millions)20052004%changeNet sales$3,806$3,44410.5%Operating income$735$61020.5%Who we are 3M industrial products are based on outstanding technologies,and stand for quality,performance and value worldwide.Whether itstapes,abrasives,adhesives,specialty chemicals,filtration systems or software for

134、supply chainmanagement,our innovative products and value-added services contribute to the productivity andprofitability of manufacturers in a wide range of industries from construction and food andbeverage to metal fabrication,mining,and oil and gas.2005 Highlights Increased sales 10.5 percent to$3.

135、8 billion,withsolid growth in our industrial adhesives and tapes,abrasive systems,and specialty materials businesses.Boosted operating income 20.5 percent and operating profit margins to 19.3 percent.Acquired CUNO Incorporated,a leader in the liquidfiltration business,greatly expanding our presence

136、inthe large and growing global liquid filtration market.Continued to take advantage of the rapid growth of emerging economies,including China,India,Russia and Poland.Increased value for our channel partners/distributors,providing them with more seamlessaccess to a wide variety of 3M products.Receive

137、d a“2005 R&D 100 Award”for thedevelopment of 3MAlumina-based Glass and Glass Ceramics.Far more durable than conventionalabrasive materials,this breakthrough holds excitingpromise in both existing and adjacent marketsegments.The prestigious R&D100 awards,presented annually by R&D Magazine,recognize t

138、he most innovative technical ideas of the year.unique strengthsingenious solutions20Health Care BusinessIndustrial Business(Millions)20052004%changeNet sales$2,292$2,1257.9%Operating income$553$49112.6%Who we are Helping to protect workers againstairborne contaminants.Making passports anddrivers lic

139、enses more secure.Helping manufacturersknow when their products have been tamperedwith.Keeping commercial establishments clean andwell-maintained.Making pedestrians more visible to drivers at night.Keeping outdoor enthusiastscomfortable in cold weather.Providing roofinggranules that make asphalt shi

140、ngles durable andalgae-resistant.Making windows more efficient and reducing the dangers of flying shards of glass caused by storms,flying objects or bombblasts.Drawing on 3Ms technology platforms,our businesses do all of this and more.2005 Highlights Increased sales 7.9 percent,with solid growth ino

141、ur occupational health and environmental safety,industrial mineral products,commercial care,andbuilding safety solutions businesses.Increased operating income 12.6 percent and operating profit margins to 24.1 percent.Significantly expanded our presence in large andgrowing markets,including double-di

142、git growth inthe Asia Pacific area and Latin America.Through the tremendous commitment of our salesorganization,manufacturing facilities and channelpartners,responded quickly to the devastationwrought by hurricanes,the tsunami and otherdisasters.We supported cleanup,recovery andrebuilding efforts wi

143、th personal safety products,window glazing protection and more.(Millions)20052004%changeNet sales$1,772$1,6745.8%Operating income$461$4268.1%Who we are We help make autos,aircraft,boatsand other vehicles more durable,fuel-efficient andless costly to manufacture.Our abrasives,adhesives,tapes and fast

144、eners help our customers producestronger,lighter body parts,and streamline main-tenance and repair operations.Our connectors andlighting panels contribute to improved electricalsystems;and our durable trim,graphics and filmsbeautify vehicles and help protect auto paint fromchipping.Were a leader in

145、the automotiveaftermarket,producing a wide range of qualityproducts for service and repair,and for great-looking refinishing and detailing work.2005 Highlights Continued to outpace the growth of our markets,with solid sales gains in the automotive OEM,autobody repair,marine and aerospace industries.

146、Increased operating income 8.1 percent and operating profit margins to 26.0 percent.Added value for our customers through a steadystream of innovative new products,includingstructural adhesive films for the aerospace industry,lighting systems for precision paint matching by auto body repair professi

147、onals,and improved paintprotection films.Entered into a joint venture with an Austrian-basedcompany through which 3M will market flat flexiblewiring systems for automotive interior applications a high-growth segment.unique strengthsingenious solutions21Transportation BusinessSafety,Security and Prot

148、ection Services BusinessGeorge W.Buckley(2005)Chairman of the Board,President and Chief Executive Officer Linda G.Alvarado(2000)President and Chief Executive Officer,Alvarado Construction,Inc.,commercial general contracting firm1,4Edward A.Brennan(1986)Retired Chairman of the Board,President and Chi

149、ef Executive Officer,Sears,Roebuck and Co.,diversified company engaged in merchandising 2,3Vance D.Coffman(2002)Retired Chairman of the Boardand Chief Executive Officer,Lockheed Martin Corporation,defense contractor 1,3Michael L.Eskew(2003)Chairman of the Board and Chief Executive Officer,United Par

150、cel Service,Inc.1,4Edward M.Liddy(2000)Chairman and Chief Executive Officer,The Allstate Corporation,personal lines insurance company1,3Robert S.Morrison(2002)Retired Vice Chairman,PepsiCo,Inc.,food and beverage company2,3Aulana L.Peters(1990)Retired Partner,Gibson,Dunn&Crutcher LLP,law firm1,4Rozan

151、ne L.Ridgway(1989)Former Assistant Secretary of State for Europe and Canada2,3Kevin W.Sharer(2001)Chairman of the Board and Chief Executive Officer,Amgen Inc.,biotechnology company2,4Louis W.Sullivan(1993)President Emeritus,Morehouse School of Medicine2,41Audit Committee2Compensation Committee 3Nomi

152、nating and Governance Committee 4Public Issues CommitteeNumbers next to names indicate year first elected to the BoardGeorge W.BuckleyChairman of the Board,President and Chief Executive OfficerPatrick D.Campbell Senior Vice President and Chief Financial OfficerJoe E.HarlanExecutive Vice President,El

153、ectro and CommunicationsBusinessJay V.Ihlenfeld Senior Vice President,Research and Development Angela S.LalorSenior Vice President,Human ResourcesJean LobeyExecutive Vice President,Safety,Security and ProtectionServices BusinessRobert D.MacDonaldSenior Vice President,Marketing and SalesJames T.Mahan

154、 Senior Vice President,Corporate Supply ChainOperationsMoe S.Nozari Executive Vice President,Consumer and Office Business Frederick J.Palensky Executive Vice President,Enterprise ServicesBrad T.SauerExecutive Vice President,Health Care Business Hak Cheol Shin Executive Vice President,Industrial and

155、TransportationBusinessJames B.Stake Executive Vice President,Display and Graphics Business Inge G.ThulinExecutive Vice President,International OperationsRichard F.Ziegler Senior Vice President,Legal Affairs and General CounselBusiness Unit ExecutivesConsumer and Office Business Joaquin DelgadoResear

156、ch and Development and New Business VenturesGregory J.EhlertSupply ChainDarrell J.GacomConsumer Key Accounts and Market DevelopmentPaul R.HansonProtective Materials and Consumer Health CareLynne E.LooneyAdvertising,Public Relations and Design ServicesJames J.MaskasConstruction and HomeImprovement Ma

157、rketsAndrew J.NaberHome CareGebran J.SabongiStationery ProductsJack G.TruongOffice SuppliesDisplay and Graphics Business Robert T.DoughtyCommercial GraphicsLarry L.LairTraffic Safety SystemsSteven C.WebsterResearch and TechnologyCommercializationAndrew H.WongOptical SystemsElectro and Communications

158、 BusinessDennis A.KrutsingerCommunication Markets Frank R.Little Electronic SolutionsJames E.SaxResearch and DevelopmentExecutivesBoard of DirectorsCorporate OfficersVice Presidents William G.Allen Latin America and Canada Herman E.NauwelaertsEurope/Middle East and AfricaJohn K.WoodworthAsia Pacific

159、Additional OfficersSteven J.Beilke Assistant SecretaryThomas A.Boardman Assistant SecretaryGregg M.Larson SecretaryMargaret M.SmythChief Accounting OfficerRobert W.SpragueAssistant SecretaryDavid G.WerpyGeneral AuditorJanet L.Yeomans Treasurerunique strengthsingenious solutions22Jesse G.SinghElectro

160、nics Markets MaterialsPaul D.SteeceElectrical MarketsHealth Care BusinessThomas R.Engels3M ESPENancy A.LarsonHealth Information SystemsJ.Michael McQuadeMedicalJohn R.SampsonPharmaceuticalsWaldemar B.Szwajkowski3M Unitek CorporationGregg A.VandesteegResearch and DevelopmentJames A.VaughanDrug Deliver

161、y SystemsIndustrial and Transportation BusinessJames L.BaumanAutomotiveTimothy B.CarneyCUNO IncorporatedPatrick DeconinckIndustrial Adhesives and TapesBetty M.HawkChannel ManagementChristopher D.HeimHighJump Software LLCChristopher D.HolmesSupply ChainJohn M.Horn Jr.Research and DevelopmentJeffrey R

162、.LaversAutomotive AftermarketFrancis E.LoftusAutomotive Market CenterWilliam G.MatthewsIndustrial Business SalesRosa M.MillerAbrasive SystemsWilliam R.MyersDyneon LLCDebra A.RectenwaldPersonal CareAntonius J.TheunissenSpecialty MaterialsSafety,Security and ProtectionServices BusinessCharles W.Boeder

163、Research and DevelopmentMichael P.DelkoskiSecurity SystemsMichael A.KellyOccupational Health and Environmental SafetyKevin S.RiesCommercial CareMartyn J.TipladyIndustrial Mineral ProductsInternational ExecutivesLaurie A.AltmanAustraliaCarlisle S.BoyceIndustrial and TransportationBusiness,Asia Pacifi

164、cCharles M.ByrneCorporate Supply ChainOperations,EuropeLuigi FaltoniBrazilJoAnn FernandezFranceJuan P.GuarachiItalyIan Hardgrove3M Canada CompanyPeter HickmanWestern Europe MarketingSubsidiaries RegionCharles R.KummethUnited Kingdom-Ireland RegionRaymond A.Longbottom*Safety,Security and ProtectionSe

165、rvices Business,Europe/Middle East and AfricaMichael F.RomanKoreaPaul D.RossoSumitomo 3M LimitedL.Edward Shivitz IIMexicoJohn van VuurenCentral/East Europe RegionKurt H.WiethoffGermanyKenneth YuChina RegionStaff and Shared Services ExecutivesLemuel D.AmenCorporate Marketing and SalesJanice K.AngellT

166、otal Compensation Resource CenterThomas F.BeddowPublic AffairsJ.Mark Borseth Global Business ProcessesRobert A.BrulloInternational TechnicalOperationsJulie L.BushmanInformation TechnologyAlexander C.Cirillo Jr.Community AffairsMark CopmanCorporate Development and Mergers and AcquisitionsGerald A.Eri

167、cksenInformation TechnologyApplicationsMark K.FuhrerAdministrative ServicesDan E.GahlonPublic Relations and Corporate Communications Henry W.GjersdalTaxGary L.GriswoldOffice of Intellectual Property Counsel,3M Innovative PropertiesCompanyJohn R.HouleSix SigmaPaul C.Husby Manufacturing and Supply Cha

168、in ServicesPeter M.KoelschResearch and Development,Environmental,Health and SafetyKevin K.KuckFilm and Materials ResourceRoger H.D.LaceyeBusiness and CorporatePlanning and StrategyRobert J.LindgrenEngineeringKatherine E.ReedEnvironmental,Health and Safety OperationsSandra K.TokachTalent Development

169、andOrganizational EffectivenessKeith P.WeberSourcing OperationsLarry A.Wendling Corporate ResearchLarry R.ZobelMedicalunique strengthsingenious solutions23*Retires May 31,2006unique strengthsingenious solutions24Financial Summary(Dollars in millions,except per share amounts)20052004200320022001Opera

170、ting ResultsNet sales$21,167$20,011$18,232$16,332$16,054Operating income$5,009$4,578$3,713$3,046$2,273Income before cumulative effect of accounting change$3,234$2,990$2,403$1,974$1,430Per share basic4.233.833.072.53 1.81Per share diluted4.163.753.022.501.79Net income$3,199$2,990$2,403$1,974$1,430Per

171、 share basic4.183.833.072.53 1.81Per share diluted4.123.753.022.50 1.79Financial RatiosPercent of salesCost of sales49.0%49.8%50.9%52.0%54.5%Selling,general and administrative expenses21.421.421.922.524.9Research,development and related expenses5.95.96.36.87.0Other expense(income)0.5(0.6)Operating i

172、ncome23.722.920.418.714.2Income before cumulative effect of accounting change15.314.913.212.18.9Total debt to total capital(total capital=debt plus equity)19%21%27%36%32%Additional InformationCash dividends paid$1,286$1,125$1,034$968$948Per share1.681.441.321.241.20Stock price at year-end77.5082.078

173、5.0361.6559.11Total assets20,51320,70817,60015,329 14,606Long-term debt(excluding current portion)1,3097271,7352,1401,520Capital expenditures943937677763980Depreciation and amortization9869999649541,089Research,development and related expenses1,2421,1941,1471,1101,120Number of employees at year-end6

174、9,31567,07167,07268,774 71,669Average shares outstanding basic(in millions)764.9780.5782.8780.0788.6Average shares outstanding diluted(in millions)776.9796.5795.3791.0799.92005 includes a cumulative effect of accounting change that reduced net income by$35 million after tax,or 4 cents per diluted sh

175、are,related to the adoption of Financial Accounting Standards BoardInterpretation No.47,“Accounting for Conditional Asset Retirement Obligations.”Cumulative effect of accounting change impacts net income only,and is not included as part of income before cumulativeeffect of accounting change.2005 res

176、ults include charges of$75 million after tax related to a tax liability resulting from 3Ms reinvestment of approximately$1.8 billion of foreign earnings into the United States pursuant to the repatriation provision of the American Jobs Creation Act of 2004.2003 results include charges of$93 million(

177、$58 million after tax),related to an adverse court ruling associated with a lawsuit filed by LePages Inc.2002 results include net losses of$202 million($108 million after tax and minority interest),related to charges in connection with 3Ms restructuring plan.2001 results include net losses of$504 mi

178、llion($312 million after tax and minority interest),principally related to charges in connection with 3Ms restructuring plan,acquisition-related charges,a reversal of a 1999 litigation accrual,and a net gain related to the sale of available-for-sale equity securities,partially offset by the write-do

179、wn of available-for-sale equity securities.Effective January 1,2006,3M adopted Statement of Financial Accounting Standards(SFAS)No.123(revised 2004),“Share-Based Payment”,which requires 3M to expense stock-based compensationexpense.Please see Note 1 to the Consolidated Financial Statements for the p

180、ro forma impact of stock-based compensation on net income and further discussion of SFAS No.123R.1UNITED STATESSECURITIES AND EXCHANGE COMMISSION Washington,D.C.20549 FORM 10-K?ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THESECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31,20

181、05 Commission file number 1-3285 3M COMPANY State of Incorporation:Delaware I.R.S.Employer Identification No.41-0417775 Principal executive offices:3M Center,St.Paul,Minnesota 55144 Telephone number:(651)733-1110 SECURITIES REGISTERED PURSUANT TO SECTION 12(b)OF THE ACT:Name of each exchangeTitle of

182、 each classon which registered Common Stock,Par Value$.01 Per Share New York Stock Exchange,Inc.Pacific Exchange,Inc.Chicago Stock Exchange,Inc.Note:The common stock of the Registrant is also traded on the SWX Swiss Exchange.Securities registered pursuant to section 12(g)of the Act:None Indicate by

183、check mark if the Registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes .No.Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes.No .Indicate by check mark whether the Registrant(1)has fil

184、ed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the Registrant was required to file such reports),and (2)has been subject to such filing requirements for the past 90 days.Yes .No.Indicate

185、by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,and will not be contained,to the best of Registrants knowledge,in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to thi

186、s Form 10-K.?Indicate by check mark whether the Registrant is a large accelerated filer,an accelerated filer,or a non-accelerated filer.See definition of“accelerated filer and large accelerated filer”in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerated filer Non-accelerated filer In

187、dicate by check mark whether the Registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes.No .The aggregate market value of voting stock held by nonaffiliates of the Registrant,computed by reference to the closing price and shares outstanding,was approximately$54.9 billion as

188、of January 31,2006(approximately$55.3 billion as of June 30,2005,the last business day of the Registrants most recently completed second quarter).Shares of common stock outstanding at January 31,2006:754,988,840.DOCUMENTS INCORPORATED BY REFERENCE Parts of the Companys definitive proxy statement(to

189、be filed pursuant to Regulation 14A within 120 days after Registrants fiscal year end of December 31,2005)for its annual meeting to be held on May 9,2006,are incorporated by reference in this Form 10-K in response to Part III,Items 10,11,12,13 and 14.This document(excluding exhibits)contains 80 page

190、s.The table of contents is set forth on page 2.The exhibit index begins on page 78.23M COMPANY FORM 10-K For the Year Ended December 31,2005 TABLE OF CONTENTS PAGES PART I ITEM 1 Business3-8 ITEM 1A Risk Factors9-10 ITEM 1B Unresolved Staff Comments10 ITEM 2 Properties10 ITEM 3 Legal Proceedings 10

191、ITEM 4 Submission of Matters to a Vote of Security Holders10PART II ITEM 5 Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities 10-11 ITEM 6 Selected Financial Data 12 ITEM 7 Managements Discussion and Analysis of Financial Condition and Results

192、of Operations 13-32 ITEM 7A Quantitative and Qualitative Disclosures About Market Risk 32 ITEM 8 Financial Statements and Supplementary Data 33-76Index to Financial Statements 33 ITEM 9 Changes in and Disagreements with Accountants onAccounting and Financial Disclosure 76 ITEM 9A Controls and Proced

193、ures 76 ITEM 9B Other Information 76PART III ITEM 10 Directors and Executive Officers of the Registrant 76-77 ITEM 11 Executive Compensation 77 ITEM 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 77 ITEM 13 Certain Relationships and Related Transact

194、ions 77 ITEM 14 Principal Accounting Fees and Services 77PART IV ITEM 15 Exhibits,Financial Statement Schedules 78-79Index to Exhibits 78-7933M COMPANYFORM 10-K For the Year Ended December 31,2005 PART I Item 1.Business.3M Company,formerly known as Minnesota Mining and Manufacturing Company,was inco

195、rporated in 1929 under the laws of the State of Delaware to continue operations begun in 1902.The Companys ticker symbol is MMM.As used herein,the term“3M”or“Company”includes 3M Company and its subsidiaries unless the context indicates otherwise.Available Information The Company files annual reports

196、,quarterly reports,proxy statements and other documents with the Securities and Exchange Commission(SEC)under the Securities Exchange Act of 1934(Exchange Act).The public may read and copy any materials that the Company files with the SEC at the SECs Public Reference Room at 100 F Street,N.E.,Room 1

197、580,Washington,D.C.20549.The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.Also,the SEC maintains a website that contains reports,proxy and information statements,and other information regarding issuers,including the Company,that fil

198、e electronically with the SEC.The public can obtain any documents that the Company files with the SEC at http:/www.sec.gov.The corporation also makes available free of charge through its website(http:/investor.3M.com)the Companys Annual Report on Form 10-K,Quarterly Reports on Form 10-Q,Current Repo

199、rts on Form 8-K,and,if applicable,amendments to those reports filed or furnished pursuant to the Exchange Act as soon as reasonably practicable after the Company electronically files such material with,or furnishes it to,the SEC.General3M is a diversified technology company with a global presence in

200、 the following businesses:health care;industrial;display and graphics;consumer and office;safety,security and protection services;electronics and telecommunications;and transportation.3M is among the leading manufacturers of products for many of the markets it serves.Most 3M products involve experti

201、se in product development,manufacturing and marketing,and are subject to competition from products manufactured and sold by other technologically oriented companies.At December 31,2005,the Company employed 69,315 people,with 33,033 employed in the United States and 36,282 employed internationally.Bu

202、siness Segments In 2005,3M managed its operations in seven operating business segments:Health Care;Industrial;Display and Graphics;Consumer and Office;Electro and Communications;Safety,Security and Protection Services;and Transportation.3Ms seven business segments bring together common or related 3M

203、 technologies,enhancing the development of innovative products and services and providing for efficient sharing of business resources.These segments have worldwide responsibility for virtually all 3M product lines.Certain small businesses and staff-sponsored products,as well as various corporate ass

204、ets and expenses,are not allocated to the business segments.Financial information and other disclosures relating to 3Ms business segments and operations in major geographic areas are provided in the Notes to Consolidated Financial Statements.Effective January 1,2006,3M combined its Industrial and Tr

205、ansportation business segments.This new segment will leverage common markets,sales channels and customers,technologies,manufacturing facilities and selling processes.This combination will provide additional efficiencies that will be reinvested in growth.The results for the new Industrial and Transpo

206、rtation segment can be approximated by combining the existing Industrial and Transportation segments.In addition,during the first quarter of 2006,the Personal Care Division(2005 annual sales of approximately$600 million)within the Health Care segment transferred to the combined Industrial and Transp

207、ortation segment.Segment information for all periods presented will be reclassified in 2006 to reflect the combined Industrial and Transportation segment in addition to the transfer of the Personal Care Division.Health Care Business:The Health Care segment serves markets that include medical,surgica

208、l,pharmaceutical,dental and orthodontic,health information systems and personal care.Products provided to these markets include medical and surgical supplies,skin health and infection prevention products,pharmaceuticals,drug delivery systems,dental and orthodontic products,health information systems

209、,microbiology products,and closures for disposable diapers.4In the medical and surgical area,3M is a supplier of medical tapes,dressings,wound closure products,orthopedic casting materials,electrodes and stethoscopes.In infection prevention,3M markets a variety of surgical drapes,masks and preps,as

210、well as sterilization assurance equipment.Pharmaceutical products include immune response modifiers,respiratory products and womens health products.Other products include drug delivery systems,such as metered-dose inhalers,transdermal skin patches and related components.Dental and orthodontic produc

211、ts include restoratives,adhesives,finishing and polishing products,crowns,impression materials,preventive sealants,professional tooth whiteners,prophylaxis and orthodontic appliances.In health information systems,3M develops and markets computer software for hospital coding and data classification,a

212、s well as providing related consulting services.3M provides microbiology products that make it faster and easier for food processors to test the microbiological quality of food.Tape closures for disposable diapers,and reclosable fastening systems and other diaper components,help disposable diapers f

213、it better.Industrial Business:The Industrial segment serves a broad range of industrial markets,from appliance and electronics to paper and packaging and food and beverage.Products include tapes,a wide variety of coated and nonwoven abrasives,adhesives,specialty materials and supply chain execution

214、software solutions.The August 2005 acquisition of CUNO,Incorporated(“CUNO”)adds a comprehensive line of filtration products for the separation,clarification and purification of fluids and gases.Major product lines include vinyl,polyester,foil and specialty industrial tapes and adhesives;Scotch Maski

215、ng Tape,Scotch Filament Tape and Scotch Packaging Tape;packaging equipment;3M VHB Bonding Tapes;conductive,low surface energy,hot melt,spray and structural adhesives;reclosable fasteners;label materials for durable goods;and coated,nonwoven and microstructured surface finishing and grinding abrasive

216、s for the industrial market.Other products include fluoroelastomers for seals,tubes and gaskets in engines;engineering fluids;and supply chain execution software and solutions.3M acquired CUNO in August 2005.CUNO is engaged in the design,manufacture and marketing of a comprehensive line of filtratio

217、n products for the separation,clarification and purification of fluids and gases.3M and CUNO have complementary sets of filtration technologies and the opportunity to bring an even wider range of filtration solutions to customers around the world.Display and Graphics Business:The Display and Graphic

218、s segment serves markets that include electronic display,touch screen,traffic safety and commercial graphics.This segment includes optical film and lens solutions for electronic displays;touch screens and touch monitors;reflective sheeting for transportation safety;and commercialgraphics systems.The

219、 optical film business provides films that serve numerous market segments of the display lighting industry.3M provides distinct products for five market segments,including products for:1)LCD computer monitors 2)LCD televisions 3)handheld devices such as cellular phones 4)notebook PCs and 5)automotiv

220、e displays.Additional optical products include touch screens,touch monitors and lens systems for projection televisions.In traffic safety systems,3M provides reflective sheetings used on highway signs,vehicle license plates,construction workzone devices,trucks and other vehicles,and also provides pa

221、vement marking systems.3Ms Intelligent Transportation Systems include emergency response and transit signal priority systems,traffic monitoring systems,and driver feedback signs.Major commercial graphic products include equipment,films,inks and related products used to produce graphics for vehicles

222、and signs.Consumer and Office Business:The Consumer and Office segment serves markets that include consumer retail,office retail,education,home improvement,building maintenance and other markets.Products in this segment include office supply products,stationery products,construction and home improve

223、ment products,home care products,protective material products(including consumer health care products such as bandages),and visual systems products.Major consumer and office products include Scotch brand products like Scotch Magic Tape,Scotch Glue Stick and Scotch Cushioned Mailer;Post-it Products,s

224、uch as Post-it Flags,Post-it Memo Pads,Post-it Labels,and Post-it Pop-up Notes and Dispensers;construction and home improvement products,including surface-preparation and wood-finishing materials and Command Adhesive products;home care products,including Scotch-Brite Scour Pads,Scotch-Brite Scrub Sp

225、onges,Scotch-Brite Microfiber Cloth products,O-Cel-O Sponges and Scotchgard Fabric Protectors;protective material products,including Filtrete Filters for furnaces and air conditioners,and 3M Nexcare Adhesive Bandages.Visual communication products serve the worlds office and education markets with ov

226、erhead projectors and transparency films,plus equipment and materials for electronic and multimedia presentations.5Electro and Communications Business:The Electro and Communications segment serves the electrical,electronicsand communications industries,including electrical utilities;electrical const

227、ruction,maintenance and repair;OEM electrical and electronics;computers and peripherals;consumer electronics;telecommunications central office,outside plant and enterprise;as well as aerospace,military,automotive and medical markets;with products thatenable the efficient transmission of electrical p

228、ower and speed the delivery of information and ideas.Products include electronic and interconnect solutions,microinterconnect systems,high-performance fluids,high-temperature and display tapes,telecommunications products and electrical products.Major electronic and electrical products include packag

229、ing and interconnection devices;high-performance fluids used in the manufacture of computer chips,and for electronics cooling and lubricating of computer hard disk drives;high-temperature and display tapes;insulating materials,including pressure-sensitive tapes and resins;and related items.3M Flexib

230、le Circuits use electronic packaging and interconnection technology,providing more connections in less space,and are used in ink-jet print cartridges,cell phones and electronic devices.This segment serves the worlds telecommunications companies with a wide array of products for fiber-optic and coppe

231、r-based telecommunications systems.Safety,Security and Protection Services Business:The Safety,Security and Protection Services segment serves a broad range of markets that strive to increase the safety,security and productivity of workers,facilities and systems.Major product offerings include perso

232、nal protection products,safety and security products,energy control products,cleaning and protection products for commercial establishments,and roofing granules for asphalt shingles.This segments products include maintenance-free and reusable respirators,electronic surveillance products,films that p

233、rotect against counterfeiting,and reflective materials that are widely used on apparel,footwear and accessories,enhancing visibility in low-light situations.Other products include theft protection systems for libraries and library patron self-checkout systems;spill-control sorbents;Thinsulate Insula

234、tion and Thinsulate Lite Loft Insulation;3M Scotchtint Window Film for buildings;3M Scotchshield Ultra Safety and Security Film for property;nonwoven abrasive materials for floor maintenance and commercial cleaning;floor matting;and natural and color-coated mineral granules for asphalt shingles.In M

235、arch 2004,3M completed the acquisition of Hornell Holding AB,a global supplier of personal protective equipment.Transportation Business:The Transportation segment serves markets that include automotive,automotive aftermarket,marine,aerospace and specialty vehicle markets.This segment provides compon

236、ents and products that are used in the manufacture,repair and maintenance of automotive,marine,aircraft and specialty vehicles.Major product categories include insulation components,including components for catalytic converters;functional and decorative graphics;abrasion-resistant films;masking tape

237、s;fasteners and tapes for attaching nameplates,trim,moldings,interior panels and carpeting;coated,nonwoven and microstructured finishing and grinding abrasives;structural adhesives;and other specialty materials.This segment also provides paint finishing and detailing products,including a complete sy

238、stem of cleaners,dressings,polishes,waxes and other products.Distribution3M products are sold through numerous distribution channels.Products are sold directly to users and through numerous wholesalers,retailers,jobbers,distributors and dealers in a wide variety of trades in many countries around th

239、e world.Management believes the confidence of wholesalers,retailers,jobbers,distributors and dealers in 3M and its products,developed through long association with skilled marketing and sales representatives,has contributed significantly to 3Ms position in the marketplace and to its growth.3M has 18

240、8 sales offices worldwide,with 15 in the United States and 173 internationally.Research and Patents Research and product development constitute an important part of 3Ms activities.Products resulting from research and development have been a major driver of 3Ms growth.Research,development and related

241、 expenses totaled$1.242 billion in 2005,$1.194 billion in 2004 and$1.147 billion in 2003.Research and development,covering basic scientific research and the application of scientific advances to the development of new and improved products and their uses,totaled$798 million in 2005,$759 million in 2

242、004 and$749 million in 2003.Related expenses primarily include technical support provided to customers for existing products by 3M laboratories and costs of internally developed patents.The Companys products are sold around the world under various trademarks that are important to the Company.The Com

243、pany also owns,or holds licenses to use,numerous U.S.and foreign patents.The Companys research and development activities continuously generate inventions that are covered by new patents.Patents applicable to 6specific products extend for varying periods according to the date of patent application f

244、iling or patent grant and the legal term of patents in the various countries where patent protection is obtained.The actual protection afforded by a patent,which can vary from country to country,depends upon the type of patent,the scope of its coverage and the availability of legal remedies in the c

245、ountry.The Company believes that its patents provide an important competitive advantage in many of its businesses.In general,no single patent or group of related patents is in itself essential to the Company as a whole or to any of the Companys business segments.The importance of patents in the Heal

246、th Care and Display and Graphics segments is described in“Performance by Business Segment”“Health Care Business”and“Display and Graphics Business”in Part II,Item 7,of this Form 10-K.Raw Materials In 2005,the Company experienced both price increases and supply limitations affecting several oil-derive

247、d raw materials,but to date the Company is receiving sufficient quantities of such materials to meet its reasonably foreseeable production requirements.It is impossible to predict future shortages of raw materials or the impact any such shortages would have.Hurricanes Katrina and Rita resulted in ti

248、ght supply conditions and significant increases in energy costs,fuel surcharges and prices for certain natural gas and petroleum related raw materials.3M has avoided disruption to its manufacturing operations through careful management of existing raw material inventories and development and qualifi

249、cation of additional supply sources.3M manages commodity price risks through negotiated supply contracts,price protection agreements and forward physical contracts.Environmental Law Compliance 3Ms manufacturing operations are affected by national,state and local environmental laws around the world.3

250、M has made,and plans to continue making,necessary expenditures for compliance with applicable laws.3M is also involved in remediation actions relating to environmental matters from past operations at certain sites(refer to“Environmental Liabilities and Insurance Receivables”in Note 11 Commitments an

251、d Contingencies).Environmental expenditures relating to existing conditions caused by past operations that do not contribute to current or future revenues are expensed.Liabilities for remediation costs are recorded on an undiscounted basis when they are probable and reasonably estimable,generally no

252、 later than the completion of feasibility studies or the Companys commitment to a plan of action.Environmental expenditures for capital projects that contribute to current or future operations generally are capitalized and depreciated over their estimated useful lives.In 2005,3M expended about$26 mi

253、llion for capital projects related to protecting the environment.The comparable amount in 2004 was about$67 million.These amounts exclude expenditures for remediation actions relating to existing matters caused by past operations.Capital expenditures for environmental purposes have included pollutio

254、n control devices such as wastewater treatment plant improvements,scrubbers,containment structures,solvent recovery units and thermal oxidizers at new and existing facilities constructed or upgraded in the normal course of business.Consistent with the Companys policies stressing environmental respon

255、sibility,capital expenditures(other than for remediation projects)for known projects are presently expected to be about$35 million over the next two years for new or expanded programs to build facilities or modify manufacturing processes to minimize waste and reduce emissions.While the Company canno

256、t predict with certainty the future costs of such cleanup activities,capital expenditures or operating costs for environmental compliance,the Company does not believe they will have a material effect on its capital expenditures,earnings or competitive position.Executive Officers Following is a list

257、of the executive officers of 3M,their ages,present positions,the years elected to their present positions and other positions held during the past five years.No family relationships exist among any of the executive officers named,nor is there any undisclosed arrangement or understanding pursuant to

258、which any person was selected as an officer.This information is presented as of the date of the 10-K filing(February 21,2006).7Executive Officers YearElected to PresentOther PositionsName AgePresent Position PositionHeld During 2001-2006George W.Buckley58Chairman of the Board,President and2005Chairm

259、an and Chief Executive Officer,Chief Executive Officer Brunswick Corporation,2000-2005 Patrick D.Campbell 53Senior Vice President and2002Vice President,Finance,General Chief Financial Officer Motors Europe,Zurich,Switzerland,2001-2002 Executive Director,Investor Relations and Worldwide Benchmarking,

260、General Motors,Detroit,Michigan,2000-2001 Joe E.Harlan 46Executive Vice President,2004President and Chairman of the Board,Electro and Communications Business Sumitomo 3M Limited,2003-2004Executive Vice President,Sumitomo 3M Limited,2002-2003 Staff Vice President,Financial Planning and Analysis,2001-

261、2002 Vice President and Chief Financial Officer,General Electric Lighting,1999-2001Jay V.Ihlenfeld 54Senior Vice President,2003Vice President,Research andResearch and Development Development,2002-2003Executive Vice President,Sumitomo 3M Limited,2001-2002 Division Vice President,Performance Materials

262、 Division,1999-2001 Angela S.Lalor 40Senior Vice President,2006Staff Vice President,Human Resources Human Resources Operations,2005 Executive Director,Human Resources Operations,2004-2005 Director,Compensation and Employee Administration,2002-2004 Master Black Belt,Human Resources 2001-2002 Jean Lob

263、ey53Executive Vice President,2005Managing Director,3M Brazil,2003-2004 Safety,Security and Protection Executive Director,Six Sigma,Europe Services Business and Middle East,2001-2003 Regional Managing Director,Central Europe Marketing Subsidiaries Region,2000-2001 Robert D.MacDonald 55Senior Vice Pre

264、sident,2004Division Vice President,Automotive Marketing and Sales Aftermarket Division,2002-2004 Managing Director,3M Italy,1999-2002 James T.Mahan 59Senior Vice President,2005Senior Vice President,Engineering,Corporate Supply Chain Operations Manufacturing and Logistics,2003-2005 Division Vice Pres

265、ident,Industrial Adhesives and Tapes Division,2002-2003 Division Vice President,Engineered Adhesives Division,2001-2002 Division Vice President,Bonding Systems Division,1999-2001 Moe S.Nozari 63Executive Vice President,2002Executive Vice President,Consumer Consumer and Office Business and Office Mar

266、kets,1999-2002 8Executive Officers(continued)YearElected to PresentOther PositionsName AgePresent Position PositionHeld During 2001-2006Frederick J.Palensky56Executive Vice President,2005Executive Vice President,Safety,Enterprise Services Security and Protection Services Business,2002-2004 Executive

267、 Vice President,Specialty Material Markets and Corporate Services,2001-2002 Vice President and General Manager 3M ESPE,2001 Division Vice President,Dental Products Division,1997-2001 Brad T.Sauer 46Executive Vice President,2004Executive Vice President,Electro andHealth Care Business Communications B

268、usiness,2002-2004 Executive Director,Six Sigma,2001-2002 Managing Director,3M Korea Ltd.,1999-2001 Hak Cheol Shin 48Executive Vice President,2006Executive Vice President,Industrial and Transportation Business Industrial Business,2005 Division Vice President,Industrial Adhesives and Tapes Division,20

269、03-2005 Division Vice President,Electronics Markets Materials Division,2002-2003 Division Vice President,Superabrasives and Microfinishing Systems Division,2001-2002 General Manager,Superabrasives and Microfinishing Systems Division,1999-2001 James B.Stake 53Executive Vice President,2002Division Vic

270、e President,Industrial Tape Display and Graphics and Specialties Division;and ViceBusiness President,Marketing,Industrial Markets,2002 Division Vice President,Industrial Tape and Specialties Division,2000-2002 Inge G.Thulin 52Executive Vice President,2004Vice President,Asia Pacific;andInternational

271、Operations Executive Vice President,International Operations,2003-2004Vice President,Europe and Middle East,2002-2003 Division Vice President,Skin Health Division,2000-2001 Richard F.Ziegler 56Senior Vice President,2003Partner,Cleary,Gottlieb,Steen&Legal Affairs and Hamilton,1983-2002 General Counse

272、l9Item 1A.Risk Factors.The most significant risk factors applicable to the Company are as follows:*Results are impacted by the effects of,and changes in,worldwide economic conditions.The Company operates in more than 60 countries and derives approximately 60%of its revenues from outside the United S

273、tates.The Companys business may be affected by factors in the United States and other countries that are beyond its control,such as downturns in economic activity in a specific country or region,or in the various industries in which the Company operates;social,political or labor conditions in a spec

274、ific country or region;or potential adverse changes in tax in the jurisdictions in which the Company operates.*The Companys results are affected by competitive conditions and customer preferences.Demand for the Companys products,which impacts revenue and profit margins,is affected by(i)the developme

275、nt and timing of introduction of competitive products;(ii)the Companys response to downward pricing to stay competitive;(iii)changes in customer order patterns,such as changes in the levels of inventory maintained by customers and the timing of customer purchases which may be affected by announced p

276、rice changes,changes in the Companys incentive programs,or the customers ability to achieve incentive goals;and(iv)changes in customers preferences for our products,including changes in customer designs for their products that can affect the demand for some of the Companys products.*Foreign currency

277、 exchange rates and fluctuations in those rates may affect the Companys ability to realize projected growth rates in its sales and earnings.Because the Company derives approximately 60%of its revenues from outside the United States,its ability to realize projected growth rates in sales and earnings

278、could be adversely affected if the U.S.dollar strengthens significantly against foreign currencies.*The Companys growth objectives are largely dependent on the timing and market acceptance of its new product offerings,including its ability to renew its pipeline of new products and to bring those pro

279、ducts to market.This ability may be adversely affected by difficulties or delays in product development,such as the inability to:identify viable new products;obtain adequate intellectual property protection;gain market acceptance of new products;or successfully complete clinical trials and obtain re

280、gulatory approvals.For example,new 3M pharmaceutical products,like any pharmaceutical under development,face substantial risks and uncertainties in the process of development and regulatory review.There are no guarantees that new products will prove to be commercially successful.*The Companys future

281、 results are subject to fluctuations in the costs and availability of purchased components,compounds,raw materials and energy,including oil and natural gas and their derivatives,due to shortages,increased demand,supply interruptions,currency exchange risks,natural disasters and other factors.The Com

282、pany depends on various components,compounds,raw materials,and energy(including oil and natural gas and their derivatives)supplied by others for the manufacturing of its products and it is possible that any of its supplier relationships could be interrupted due to natural and other disasters and oth

283、er events or terminated in the future.Any sustained interruption in the Companys receipt of adequate supplies could have a material adverse effect on the Company.In addition,while the Company has a process to minimize volatility in component and material pricing,no assurance can be given that the Co

284、mpany will be able to successfully manage price fluctuations or that future price fluctuations or shortages will not have a material adverse effect on the Company.*Acquisitions,strategic alliances,divestitures,and other unusual events resulting from portfolio managementactions and other evolving bus

285、iness strategies,and possible organizational restructuring could affect future results.The Company monitors its business portfolio and organizational structure and has made and may continue to make acquisitions,strategic alliances,divestitures and changes to its organizational structure.With respect

286、 to acquisitions,future results will be affected by the Companys ability to quickly integrate an acquired business and obtain the anticipated synergies.*The Companys future results may be affected if the Company generates less productivity improvements than estimated.The Company utilizes various too

287、ls,such as Six Sigma,to improve operational efficiency and productivity.There can be no assurance that all of the estimated productivity improvements will be realized.*The Companys future results may be affected by various legal and regulatory proceedings,including those involving product liability,

288、antitrust,environmental or other matters.The outcome of these legal proceedings may differ from the Companys expectations because the outcomes of litigation,including regulatory matters,are often difficult to reliably predict.Various factors or developments can lead the Company to change current est

289、imates of 10liabilities and related insurance receivables where applicable,or make such estimates for matters previously not susceptible of reasonable estimates,such as a significant judicial ruling or judgment,significant settlement,significant regulatory development or changes in applicable law.A

290、future adverse ruling,settlement or unfavorable development could result in future charges that could have a material adverse effect on the Companys results of operations or cash flows in any particular period.A specific factor that could increase the Companys estimate of its future asbestos-related

291、 liabilities is the pending Congressional consideration of legislation to reform asbestos-related litigation and pertinent information derived from that process.For a more detailed discussion of the legal proceedings involving the Company and associated accounting estimates,see the discussion in Not

292、e 11 to the Consolidated Financial Statements of this Annual Report on Form 10-K.Item 1B.Unresolved Staff Comments.None.Item 2.Properties.3Ms general offices,corporate research laboratories,and certain division laboratories are located in St.Paul,Minnesota.In the United States,3M has 15 sales office

293、s in 12 states and operates 59 manufacturing facilities in 23 states.Internationally,3M has 173 sales offices.The Company operates 80 manufacturing and converting facilities in 29 countries outside the United States.3M owns substantially all of its physical properties.3Ms physical facilities are hig

294、hly suitable for the purposes for which they were designed.Because 3M is a global enterprise characterized by substantial intersegment cooperation,properties are often used by multiple business segments.Item 3.Legal Proceedings.Discussion of legal matters is incorporated by reference from Part II,It

295、em 8,Note 11,“Commitments and Contingencies”,of this document,and should be considered an integral part of Part I,Item 3,“Legal Proceedings”.Item 4.Submission of Matters to a Vote of Security Holders.None in the quarter ended December 31,2005.PART II Item 5.Market for Registrants Common Equity,Relat

296、ed Stockholder Matters and Issuer Purchases of EquitySecurities.Equity compensation plans information is incorporated by reference from Part III,Item 12,Security Ownership of Certain Beneficial Owners and Management,of this document,and should be considered an integral part of Item 5.At January 31,2

297、006,there were approximately 125,823 shareholders of record.3Ms stock is listed on the New York Stock Exchange,Inc.(NYSE),Pacific Exchange,Inc.,Chicago Stock Exchange,Inc.,and the SWX Swiss Exchange.Cash dividends declared and paid totaled$.42 per share for each quarter of 2005,and$.36 per share for

298、 each quarter of 2004.Stock price comparisons follow:Stock price comparisons(NYSE composite transactions)(Per share amounts)FirstQuarter Second QuarterThirdQuarterFourthQuarterYear 2005 High$87.45$86.21$76.74$79.84$87.45 2005 Low80.73$72.2570.4169.7169.71 2004 High$86.20$90.29$90.11$83.03$90.29 2004

299、 Low74.3580.9077.2073.3173.3111Issuer Purchases of Equity Securities Repurchases of common stock are made to support the Companys stock-based employee compensation plans and for other corporate purposes.On November 8,2004,the Board of Directors authorized the purchase of$2.0 billion of the Companys

300、common stock between January 1,2005 and January 31,2006.In October 2005,3Ms Board of Directors authorized the repurchase of an additional$300 million of the Companys common stock through January 31,2006.This increased the total repurchase authorization to$2.3 billion through January 31,2006.Issuer P

301、urchases of EquitySecurities(registered pursuant toSection 12 of the Exchange Act)PeriodTotalNumber of SharesPurchasedAverage PricePaid per ShareTotalNumber of SharesPurchasedas Part of PubliclyAnnouncedPlans or Programs Maximum ApproximateDollar Value of Shares that May Yet BePurchasedunder the Pla

302、ns or Programs(1)(Millions)January 1-31,2005 2,333,811$82.662,245,000$1,814February 1-28,2005 2,111,948$84.581,775,500$1,665March 1-31,2005 3,490,467$85.763,411,800$1,372 Total January 1 March 31,2005 7,936,226$84.537,432,300$1,372April 1-30,2005 879,751$84.67863,000$1,299May 1-31,2005 2,572,923$77.

303、222,439,000$1,111June 1-30,2005 3,146,737$76.473,115,000$872 Total April 1 June 30,2005 6,599,411$77.866,417,000$872 July 1-31,2005 2,389,531$73.962,353,700$698 August 1-31,2005 3,415,930$72.053,398,300$453 September 1-30,2005 2,754,191$73.06 2,734,300$254 Total July 1 September 30,2005 8,559,652$72

304、.918,486,300$254 October 1-31,2005 1,725,380$73.781,658,700$431 November 1-30,2005 2,283,087$77.242,237,400$259 December 1-31,2005 3,406,831$77.743,271,400$4 Total October 1 Dec.31,2005 7,415,298$76.677,167,500$4 Total January 1 December 31,2005 30,510,587$77.9229,503,100$4(1)The total number of sha

305、res purchased includes:(i)shares purchased under the Boards$2.3 billion authorization described above,and(ii)shares purchased in connection with the exercise of stock options(which combined totaled 88,811 shares in January 2005,336,448 shares in February 2005,78,667 shares in March 2005,16,751 share

306、s in April 2005,133,923 shares in May 2005,31,737 shares in June 2005,35,831 shares in July 2005,17,630 shares in August 2005,19,891 shares in September 2005,66,680 shares in October 2005,45,687 shares in November 2005,and 135,431 shares in December 2005).12Item 6.Selected Financial Data.(Dollars in

307、 millions,except per share amounts)200520042003 2002 2001Years ended December 31:Net sales$21,167$20,011$18,232$16,332$16,054 Income before cumulative effect of accounting change 3,2342,990 2,403 1,974 1,430 Per share of common stock:Income before cumulative effect of accounting change basic 4.233.8

308、3 3.07 2.53 1.81 Income before cumulative effect of accounting change diluted 4.163.75 3.02 2.50 1.79 Cash dividends declared and paid 1.681.44 1.32 1.24 1.20 At December 31:Total assets$20,513$20,708$17,600$15,329$14,606 Long-term debt(excluding portion due within one year)and long-term capital lea

309、se obligations 1,368798 1,805 2,142 1,520 The above income and earnings per share information exclude a cumulative effect of accounting change in 2005($35 million,or 4 cents per diluted share).Effective January 1,2006 the Company adopted Statement of Financial Accounting Standards No.123(revised 200

310、4)and will use the modified retrospective method to adjust all prior periods to give effect to the fair-value based method of accounting for stock options.Refer to Note 1 to the Consolidated Financial Statements for more detail on these two items.As discussed in the Notes to Consolidated Financial S

311、tatements,2005 results included charges that reduced net income by$75 million.This relates to a tax liability resulting from 3Ms reinvestment of approximately$1.8 billion of foreign earnings into the United States pursuant to the repatriation provisions of the American Jobs Creation Act of 2004.2003

312、 results included charges related to an adverse ruling in a lawsuit filed against 3M in 1997 by LePages Inc.that reduced operating income by$93 million($58 million after tax).2002 charges in connection with 3Ms 2001/2002 restructuring plan reduced operating income by$202 million($108 million after t

313、ax and minority interest).2001 includes net losses that reduced operating income by$504 million($312 million after tax and minority interest),principally related to charges in connection with 3Ms 2001/2002 restructuring plan,acquisition-related charges,a reversal of a 1999 litigation accrual,and a n

314、et gain related to the sale of available-for-sale equity securities,partially offset by the write-down of available-for-sale equity securities.13Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations.OVERVIEW3M is a diversified global manufacturer,technology inno

315、vator and marketer of a wide variety of products.In 2005,3M managed its operations in seven operating business segments:Health Care;Industrial;Display and Graphics;Consumer and Office;Electro and Communications;Safety,Security and Protection Services;and Transportation.Refer to the Performance by Bu

316、siness Segment section for discussion of segment changes effective in the first quarter of 2006.3Ms 2005 performance demonstrated the operational strength of 3M and the value of the diversification of the 3M business portfolio.3Ms sourcing organization and the businesses worked together to maintain

317、customer service,while successfully managing the business to avoid supply disruptions in the face of hurricanes and shortages of key raw materials.3M increased its dividend 16.7%,the 47th consecutive year of 3M dividend increases,and repurchased$2.3 billion of stock under its stock repurchase author

318、ization.The combination of dividends and stock buy-backs returned a total of$3.6 billion to shareholders during 2005.3M also acquired CUNO,a liquid filtration company.In 2005,3M reported record net sales of$21.167 billion and record net income of$3.199 billion,or$4.12 per diluted share,compared with

319、 net sales of$20.011 billion and net income of$2.990 billion,or$3.75 per diluted share,in 2004.The combination of a 5.8%increase in net sales,including core local-currency sales growth of 4.1%(whichexcludes the impact of businesses acquired in the last 12 months),and declining manufacturing costs as

320、 a percent of sales,resulted in a 23.7%operating income profit margin.In 2005,income before cumulative effect of accounting change totaled$3.234 billion,or$4.16 per diluted share.As of December 31,2005,3M adopted Financial Accounting Standards Board Interpretation(FASB)No.47,“Accounting for Conditio

321、nal Asset Retirement Obligations”(FIN 47).The adoption of FIN 47 resulted in an after tax charge of$35 million,which is reflected as a cumulative change in accounting principle(refer to Note 1 to the Consolidated Financial Statements for more detail).In addition,during 2005,3M completed its evaluati

322、on of the repatriation provision of the American Jobs Creation Act of 2004 and repatriated approximately$1.8 billion of foreign earnings into the U.S.pursuant to its provisions.As a consequence,in the second quarter of 2005,3M recorded a tax expense of$75 million,net of available foreign tax credits

323、.Combined,these two items reduced net income by$110 million in 2005.The following table contains sales and operating income results by business segment for the years ended December 31.2005 vs.2004 2005 2004%change(Dollars in millions)Net%ofOper.Net%of Oper.NetOper.SalesTotalIncomeSalesTotalIncomeSal

324、esIncome Business Segments Health Care$4,373 20.7%$1,215$4,230 21.1%$1,1233.4%8.2%Industrial 3,806 18.0%7353,44417.2%61010.5%20.5%Display and Graphics 3,558 16.8%1,1593,41617.1%1,1334.2%2.3%Consumer and Office 2,986 14.1%5762,86114.3%5424.4%6.3%Electro and Communications 2,333 11.0%4632,22411.1%3424

325、.9%35.4%Safety,Security and Protection Services 2,292 10.8%5532,12510.6%4917.9%12.6%Transportation1,772 8.4%4611,6748.4%4265.8%8.1%Corporate and Unallocated47 0.2%(153)37 0.2%(89)Total Company$21,167 100%$5,009$20,011 100%$4,5785.8%9.4%3Ms performance in 2005 was broad-based,with all seven business

326、segments contributing to positive local-currency sales growth.Sales growth in Health Care was led by 3Ms core medical and dental businesses and strong growth in health information systems,which helped overcome the growth challenges of the pharmaceuticals and personal care businesses.Sales growth in

327、the Industrial segment was led by industrial adhesives and tapes,as well as the abrasives businesses.The CUNO acquisition added 5.1%to Industrial sales growth.Display and Graphics sales growth in display enhancement films used in flat-panel devices was partially offset by the continued decline in le

328、ns systems for 14the CRT rear projection television market along with the phase out of the commercial videotape business.Sales growth in the Consumer and Office segment was broad-based across the many channels 3M serves,most notably in the mass-market consumer and home improvement retail channels.Fo

329、r the Electro and Communications segment,sales growth was led by demand for 3M electronic products for the semiconductor manufacturers,along with continued strong growth in electrical products for insulating,testing and sensing.Sales growth in the Safety,Security andProtection Services segment was d

330、riven by continued strong demand for personal protection products and solutions,particularly respiratory protection products,along with strong demand for cleaning and protection products for commercial buildings.Sales growth in the Transportation segment was led by both the automotive OEM and repair

331、 markets.Refer to the Performance by Business Segment section for a more detailed discussion of the results of the respective segments.Geographically,U.S.sales revenue increased 4.9%,Asia Pacific local-currency sales(which exclude translation impacts)increased 10.6%,European local-currency sales inc

332、reased 0.9%,and the combined Latin America and Canada area local-currency sales increased 1.3%.Refer to the Performance by Geographic Area section for a more detailed discussion of the results for the respective areas.Operating income in 2005 increased by 9.4%versus 2004,as all seven business segmen

333、ts posted increases.The combination of solid sales growth and positive benefits from corporate initiatives helped drive the increase in operating income.The Company estimates that cost reduction projects related to initiatives provided a combined incremental benefit to operating income of approximately$400 million in 2005.These initiatives contributed more than$400 million to operating income in b