2023 ASI Top 20: 3M

Photo of the 3M headquarters in St. Paul, Minnesota.

Founded in 1902 as a small-scale mining venture in Northern Minnesota, 3M is now an American multi-national conglomerate providing products in fields including worker safety, healthcare, and industrial and consumer goods. For 2022, 3M posted $34.2 billion in net sales, a decline of 3.2% year-on year.

The company operates in four business groups: Safety & Industrial, which posted $11.6 billion in sales for 2022 (34% of total sales); Consumer, with $5.3 billion in 2022 sales (15% of total sales); Healthcare, with $8.4 billion in 2022 sales (25% of total sales); and Transportation & Electronics, with $8.9 billion in sales for 2022 (26% of total sales).

3M’s Industrial Adhesives & Tapes business accounted for 20% of the Safety & Industrial segment’s almost $11.6 billion sales in 2022, while the Closure & Masking Systems business represented 9% of segment sales. The segment saw overall organic sales increase by 1% for the year.

Examples of brand offerings within the 3M portfolio of adhesive and tape products include the following: 3M™ Scotch-Weld™ Structural Adhesives; 3M™ VHB™ Tape; and Scotch® Masking, Packaging and Filament tapes.

"We posted organic growth of 0.4 percent -- versus our expectation of 1 to 3 percent -- adjusted margins of 19.1 percent, and adjusted earnings of $2.28 per share. The slower-than-expected growth was due to rapid declines in consumer-facing markets – a dynamic that accelerated in December – along with significant slowing in China due to COVID-related disruptions. As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels," said 3M chairman and CEO Mike Roman.

"We managed our portfolio – including the divestiture of our Food Safety business, planned spin-off of our Health Care business, and commitment to exit PFAS manufacturing by the end of 2025 – while continuing to work towards a mediated resolution for Combat Arms litigation. We invested in growth and productivity, while following through on sustainability commitments."

NOTES: In 2022, 3M launched 3M™ VHB™ Extrudable Tape. In collaboration with Nordson Corp., 3M reimagined durable bonding with 3M™ VHB™ Extrudable Tape GP and the 3M™ On Demand Bonding System, which provides a simple, automated solution and easily integrates into an assembly line.

Note: Photo courtesy of 3M.