3M

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For another meaning, see 3M computer.
3M Company
Type Public (NYSE: MMM)
Founded Two Harbors, Minnesota, USA (1902)
Headquarters Maplewood, Minnesota, USA
Key people George W. Buckley, Chairman, President and CEO
Patrick D. Campbell, Senior VP/CFO
Industry Conglomerate
Products Adhesives
Abrasives
Pharmaceuticals
Revenue ▲$22.923 billion USD (2006) [1]
Net income ▲$3.851 billion USD (2006) [2]
Employees 75,333 (2006)
Website 3M.com

3M Company (NYSE: MMM), formerly Minnesota Mining and Manufacturing Company until 2002, is an American multinational conglomerate corporation with a worldwide presence.

It produces over 75,000 products, including: adhesives, abrasives, laminates, passive fire protection, dental products, electrical materials, electronic circuits, optical films, and supply chain management software. 3M has operations in more than 60 countries – 29 international companies with manufacturing operations, and 35 with laboratories. 3M products are available for purchase through distributors and retailers in more than 200 countries, and many 3M products are available online directly from the company.

Contents

[edit] History

Starting out on the North Shore of Lake Superior at Two Harbors, Minnesota in 1902, the company moved to Duluth, Minnesota, and moved to its current headquarters in Maplewood (a St. Paul suburb) in 1906. The company began by mining stone from quarries for use in grinding wheels. Struggling with quality and marketing of its products, top management supported its workers to innovate and develop new products, which eventually would develop into its core business. Twelve years after being founded, 3M was able to develop its first exclusive product: 3M Three-M-ite cloth. Other innovations around this time by 3M included waterproof sandpaper and masking tape. After this point, the famous Scotch brand tape was “born.” By 1929 3M made its first moves in to an international expansion by forming “Durex” in order to conduct business in Europe. This same year, the company’s stocks were first traded over the counter and in 1946 the stocks were listed on the New York Stock Exchange (NYSE). The company is currently a component of the Dow Jones 30 Industrials stock index and a component of the S & P 500.

[edit] Founding

The company was founded by Henry S. Bryan, Herman W. Cable, John Dwan, William A, McGonagle, and Dr. J. Danley Budd who incorporated 3M on the shore of Lake Superior in 1902. Their original plan was to sell the mineral corundum to manufacturers in the East for making grinding wheels. After selling only one load, on June 13, 1902 the five went the Two Harbors office of company secretary John Dwan—now part of the 3M Museum. They signed papers making Minnesota Mining and Manufacturing a corporation. But Dwan and his associates were not selling what they thought. The mineral was anorthosite, and it was worthless.[1]

Failing to make sandpaper with the anorthosite, they decided to import minerals like Spanish garnet, and sandpaper sales grew. In 1914 customers complained that the garnet was falling off the paper. They found that as the stones had traveled across the Atlantic Ocean with olive oil, the oil had penetrated the stones. Unable to take the loss of selling expensive inventory, they found that the olive oil could be roasted away over a fire. This was the first instance of R&D at 3M.

In 1916 company general manager William L. McKnight applied the same scientific methods to production that he had used to save the company from bankruptcy, and bought the company's first lab for $500. From then on, science would be 3M's guide.

[edit] Expansion

The company's early innovations include waterproof sandpaper (1921) and masking tape (1925), as well as cellophane "Scotch Tape" and sound deadening materials for cars. 3M's corporate image is built on its innovative and unique products, with up to 25% of sales from new products.

After World War II 3M opened plants across the United States. During the 1950s the company expanded worldwide with operations in Canada, Mexico, France, Germany, Australia, and the United Kingdom. In 1951, international sales were approximately $20 million. 3M’s achievements were recognized by the American Institute of Management naming the company “one of the five best-managed companies in the United States and included it among the top 12 growth stocks (3M).” [3]

In the late 1960s and early 70s, 3M published a line of board games, largely under the "3M bookshelf game series" brand. These games were marketed to adults and sold through department stores, with easily learned simple rules but complex gameplay and depth and with uniformly high quality components. As such, they are the ancestors of the German "Eurogames". The games covered a variety of topics, from business and sports simulations to word and abstract strategy games. They were a major publisher at the time for influential American designers Sid Sackson and Alex Randolph. In the mid-1970s, the game line was taken over by Avalon Hill.

During the 1970s, 3M introduced its first and only traffic signal, the M-131. Labeled a "programmable visibility" signal, the signal had the unique ability to be "programmed" so it was visible from certain angles. It was the first of its type and is still being produced today. 3M sold these signals for special-use applications, such as left turn signals, skewed intersections, or dangerous intersections where a very bright indication is needed. The signals are very heavy and expensive to maintain, and removal is quite frequent in some areas.

3M's Mincom division introduced several models of magnetic tape recorders for instrumentation use and for studio sound recording. An example of the latter is the model M79 recorder [4], which still has a following in recording circles today. 3M Mincom was also involved in designing and manufacturing video production equipment for the television and video post-production industries in the 1970s and 1980s, with such items as character generators and several different models of video switchers, from models of audio and video routers to video mixers for studio production work.

3M Mincom was involved in some of the first digital audio recordings of the late 1970s to see commercial release when a prototype machine was brought to the Sound 80 studios in Minneapolis. After drawing on the experience of that prototype recorder, 3M later designed and manufactured several commercially available models of digital audio recorders used throughout the early to mid-1980s.

In 1980 the company introduced Post-it notes. In 1996, the company's data storage and imaging divisions were spun off as Imation Corporation. Imation has since sold its imaging and photographic film businesses to concentrate on storage.

Today 3M is one of the 30 companies included in the Dow Jones Industrial Average (added on August 9, 1976), and is ranked number 101 on the 2006 Fortune 500 listing. The company has 132 plants and over 67,000 employees worldwide, with sales offices in over 200 countries. The vast majority of the company's employees are local nationals, with few employees residing outside their home country. Its worldwide sales are over $20 billion, with international sales 58% of that total.

On December 20, 2005, 3M announced a major partnership with Roush-Fenway Racing, one of NASCAR's premier organizations. In 2008 the company will sponsor Greg Biffle in the NASCAR Sprint Cup Series as he drives the #16 Ford Fusion. In addition, on February 19, 2006, 3M announced that it would become the title sponsor of the 3M Performance 400 at Michigan International Speedway for at least the next three years.

On April 4, 2006, 3M announced its intention to sell pharmaceutical non-core business. The pharmaceuticals businesses were sold off in three deals, in Europe, the Americas, and the Rest of the World. Another division of the Health Care business, Drug Delivery Systems remains with 3M. The Drug Delivery System division continues to contract manufacture inhalants and transdermal drug delivery systems and has now taken on manufacture of the products whose licenses were sold during the divestiture of the pharmaceuticals business.[2]

Today, after 100 years, 3M follows a business model based on “the ability to not only develop unique products, but also to manufacture them efficiently and consistently around the world (3M).” [5]

The Target Light System, built by 3M
The Target Light System, built by 3M[3]

[edit] Environmental Record

Greenhouse gas (GHG) emission reductions are a main concern for 3M. 3M’s Former Staff Vice President, Dr. Joseph T. Ling was awarded the U.S. Environmental Protection Agency’s Clean Air Excellence Award’s Thomas W. Zosel Outstanding Individual Achievement Award for his work to promote pollution prevention worldwide. [4] Scientists are raising concerns about the potential health and environmental effects of an important family of industrial chemicals. [5] 3M recognizes the necessity for responsible environmental management of resources. 3M has also recognized the global nature of environmental matters and the importance of industry’s constructive cooperation in achieving international environmental conservation. 3M has established a record of many important pollution control projects at its facilities worldwide. In 1975, 3M developed a Pollution Prevention Pays (3P) program with the goal of eliminating or reducing sources of pollution in their products. This program has been recognized globally for its innovation in environmental management by focusing on pollution prevention, rather than pollution control. [6]

[edit] Cottage Grove Plant Contamination

3M states that the PFC contamination of the Mississippi River and surrounding area near the company's Cottage Grove plant will be "cleaned though a combination of groundwater pumpout wells and soil sediment excavation."[7] The plan for the restoration of the area includes a complete analysis of the entire company property and surrounding lands. [8] The Perfluorochemicals have been released into the environment surrounding the facility starting in the 1940's and lasting until 2002. [9] The chemicals produced are the result of the companies non-stick cookware, stain resistant fabrics, and other similar products. [10] The on-site water treatment facility that handles the plant's post-production water is not capable of removing the PFCs, which were pumped into the nearby Mississippi River. [11] Estimates on the total cost of the clean-up to be incured by 3M range from 50-56 million dollars, which will come out of the $147 million pot the company set aside in 2006 to deal with environmental issues relating to the company. [12] The search area for PFCs in the Mississippi River now extends to five states, spanning approximatly half of the rivers total distance. [13] Perfluorochemicals do not break down or degrade in the environment."[14]

3M rates as number 70 out of the United State's 100 top air polluters on the PERI Toxic 100 table, producing 4.75 million pounds of air pollutants every year. [15] The Cottage Grove site represents 3M's third highest pollutant producing facility, releasing 244,715 lbs. of pollution into the air yearly.[16]

[edit] Technology platforms

[edit] Brands/products

[edit] Corporate governance

 This section does not cite any references or sources. (September 2007)
Please help improve this section by adding citations to reliable sources. Unverifiable material may be challenged and removed.

[edit] Current board of directors

George W. Buckley | Patrick D. Campbell | Joe E. Harlan | Michael A. Kelly | Angela S. Lalor | Jean Lobey | Robert D. MacDonald | Moe S. Nozari | Frederick J. Palensky | Brad T. Sauer | H.C. Shin | James B. Stake | Inge G. Thulin | John K. Woodworth

[edit] Presidents

1902–1905 Henry S. Bryan
1905–1906 Edgar B. Ober
1906–1909 Lucius P. Ordway
1909–1929 Edgar B. Ober
1929–1949 William L. McKnight
1949–1953 Richard P. Carlton
1953–1963 Herbert P. Buetow
1963–1966 Bert S. Cross

[edit] Chief executive officers

1966–1970 Bert S. Cross
1970–1974 Harry Heltzer
1974–1979 Raymond H. Herzog
1979–1986 Lewis W. Lehr
1986–1991 Allen F. Jacobson
1991–2001 L.D. DeSimone
2001–2005 W. James McNerney, Jr.
2005 Robert S. Morrison (interim)
2005–present George W. Buckley

[edit] Chairmen of the board

1949–1966 William L. McKnight
1966–1970 Bert S. Cross
1970–1975 Harry Heltzer
1975–1980 Raymond H. Herzog
1980–1986 Lewis W. Lehr
1986–1991 Allen F. Jacobson
1991–2001 L.D. DeSimone
2001–2005 W. James McNerney, Jr.
2005–present George W. Buckley

[edit] See also

[edit] References

  1. ^ MPR: 3M at 100 - on the right path for growth?
  2. ^ 3M (2006-04-04). "3M to Explore Strategic Alternatives for its Branded Pharmaceuticals Business". Press release. Retrieved on 2006-04-24.
  3. ^ Target Lights create evolving Minneapolis landmark, Minneapolis/St. Paul Business Journal , April 11, 2003.
  4. ^ http://solutions.3m.com/wps/portal/3M/en_US/global/sustainability/management/climate-change-energy/
  5. ^ http://topics.nytimes.com/top/news/business/companies/3m_company/index.html?query=ENVIRONMENT&field=des&match=exact
  6. ^ http://dnr.wi.gov/org/caer/cea/ecpp/agreements/3m/agreements/amended/factsheet20050329.pdf
  7. ^ http://www.startribune.com/local/17173956.html
  8. ^ http://www.health.state.mn.us/divs/eh/hazardous/sites/washington/3mcg0205.pdf
  9. ^ http://www.health.state.mn.us/divs/eh/hazardous/sites/washington/3Mcottagegrove.html
  10. ^ http://www.startribune.com/local/17173956.html
  11. ^ http://www.health.state.mn.us/divs/eh/hazardous/sites/washington/3Mcottagegrove.html
  12. ^ http://www.tradingmarkets.com/.site/news/Stock%20News/1325650/
  13. ^ http://minnesota.publicradio.org/display/web/2008/04/22/pfc_search/
  14. ^ http://www.startribune.com/local/17173956.html
  15. ^ http://www.peri.umass.edu/Toxic-100-Table.265.0.html
  16. ^ http://www.rtknet.org/new/tox100/toxic100.php?database=t1&detail=1&datype=T&reptype=a&company1=&company2=14&chemfac=fac&advbasic=bas

[edit] External links

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3M Company
Corporate Directors:
Annual Revenue: $22.923 billion USD (2006) · Employees: 67,071 · Stock Symbol: NYSE: MMM · Website: www.3m.com
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