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Oct 21, 2024

How 3M Makes Money

Safety and industrial products generate the most sales 3M Co. (MMM) is a diversified global company that manufactures products, such as adhesives, building materials, insulation, lubricants, tools,

Safety and industrial products generate the most sales

3M Co. (MMM) is a diversified global company that manufactures products, such as adhesives, building materials, insulation, lubricants, tools, medical supplies, electronics components, cleaning supplies, and office supplies. Its products are sold under brand names including Scotch, Post-it, Nexcare, ACE, and Command. The company distributes its products through wholesalers, retailers, and online.

A technology company, 3M has a market share in the Safety and Industrial, Transportation and Electronics, Health Care, and Consumer sectors. 3M faces global competition from companies in various industries, including transportation, healthcare, electronics, and consumer goods. Its main competitors include General Electric Co. (GE), Emerson Electric Co. (EMR), Honeywell International Inc. (HON), Owens Corning Inc. (OC), Avery Dennison Corp. (AVY), and Danaher Corp. (DHR).

On Apr. 1, 2024, 3M completed the planned spin-off of its healthcare business, launching Solventum Corporation as an independent company, listed on the NYSE as SOLV.

In Feb. 2024, 3M released its financial results for its 2023 fiscal year (FY), ending Dec. 31, 2023. Net income decreased by 221% year over year (YOY) to -$6.99 billion. Net sales, the company's revenue metric, was $32.7.0 billion, down 4.5% since 2022. Total operating income, which 3M uses to measure profit in its business segments, decreased 239.6% YOY to -$9.13 billion.

The decrease in performance can be partly attributed to 3M's settlement of key litigations around faulty earplugs and the use of “forever chemicals.” In August 2023, 3M agreed to pay $6.0 billion to resolve the litigation of Combat Arms Earplugs from 2023 to 2029. The company also faces continuing litigation related to PFAS chemicals including perfluorooctane sulfonate (“PFOS”) and perfluorooctanoic acid (“PFOA”), used for various industrial purposes.

3M will discontinue manufacturing all fluoropolymers, fluorinated fluids, and PFAS-based additive products by 2025.

In 1902, Dr. J. Danley Budd, Henry. S. Bryan, William A. McGonagle, John Dwan, and Hermon W. Cable founded Minnesota Mining and Manufacturing Company. The 3M™ Three-M-ite™ Abrasive Cloth became 3M’s first product in 1914 before the company became synonymous with Scotch Tape and masking tape. In 1980, 3M introduced Post-it® Notes, an office staple. As of 2024, 3M manufactures 60,000 products, supporting multiple sectors and industries.

William “Bill” Brown serves as the chief executive officer (CEO) of 3M in 2024. He is the former Chair of the Board and Chief Executive Officer of L3Harris Technologies.

In 2023, 3M announced its plan to invest $146 million to advance capabilities in biopharma filtration technology. The investment includes facility and equipment improvements and the addition of 60 employees in its manufacturing facilities in Europe. The goal is to help its biotech customers innovate therapies to treat rheumatoid arthritis, multiple sclerosis, and certain cancers.

From 2023 through 2025, 3M will structurally reorganize to reduce the size of its corporate center, simplify the supply chain, reduce management levels, align business go-to-market models to customers, and align manufacturing roles with production volumes.

The founders of 3M first sought to mine for corundum, a mineral used to make sandpaper and grinding wheels.

PFAS chemicals promote durability and water resistance and are found in products such as adhesives, cleaning supplies, vehicle batteries, fuel lines, and food packaging.

3M offices are located in the U.S., Germany, and Belgium.

3M manufactures products, such as adhesives and building materials, sold under brand names like Scotch, Post-it, Nexcare, ACE, and Command. The company was founded as a mining operation in 1902. As of 2024, 3M supports 60,000 products worldwide.

3M. "3M Brands."

3M. "Annual Report on Form 10-K for the Year Ended December 31, 2023," Page 4.

3M. "Annual Report on Form 10-K for the Year Ended December 31, 2023," Page 107.

3M. "3M Completes Spin-off of Solventum."

3M. "Annual Report on Form 10-K for the Year Ended December 31, 2023," Page 44.

3M. "Combat Arms Earplugs Settlement Set to Exceed 98% Participation Milestone."

3M. "Annual Report on Form 10-K for the Year Ended December 31, 2023," Pages 11-12.

3M. "PFAS & Their Uses."

3M. "History."

3M. "About 3M."

3M. "Corporate Officers."

3M. "3M to Invest Nearly $150 Million to Advance Capabilities in Biopharma Filtration Technology."

3M. "Annual Report on Form 10-K for the Year Ended December 31, 2023," Page 57.

3M. "Current Operations."