Which Of 3M’s 26 Business Lines Makes The Most Money?

by Trefis Team
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3M (NYSE:MMM) is one of the most diversified industrial conglomerates in the United States, doling out more than 55,000 products. The company manages this massive number of products under 26 business lines, which it groups into five business segments. Trefis details how much in revenues each of 3M’s 26 business lines contributes to the company’s top line in an interactive dashboard, parts of which we highlight below.

3M’s Revenues were $32.8 Bil in 2018, and the single largest of its 26 business lines is its Adhesives and Tapes business – which brought in $4.3 Bil in revenues (~13% of total revenues in 2018).

 

3M Primarily has five revenue streams:

  • Industrial Business: This segment serves a broad range of markets with products including vinyl, polyester, foil, and specialty industrial tapes and adhesives.
  • Safety and Graphics Business: This segment derives revenue by providing products that increase the safety and productivity of people, facilities and systems
  • Consumer Business: The Consumer segment offers products, including office supply products, stationery products, home care products, and consumer health care products.
  • Healthcare Business: Health Care segment sells medical tapes, dressings, wound closure product as well as surgical drapes, masks and preps, electrodes, and stethoscopes
  • Electronics and Energy Business: The Electronics and Energy segment serves customers in electronics and energy markets. Major product offerings of this segment include LCD computer monitors, LCD televisions handheld devices such as cellular phones and tablets, notebook PCs, and automotive displays.

We expect 3M to report $32.4 Billion in revenues for full-year 2019, with revenues for its five reporting segments being:

  • Industrial Business: $5.3 Billion  (38%)
  • Safety and Graphics Business: $4.1 Billion (29%)
  • Health Care Business: $3.3 Billion  (23%)
  • Electronics and Energy Business: $12.94 Billion (9.5%)
  • Consumer Business: $0.1 Billion (0.5%)

 

Delving Deeper Into 3M’s Revenues By Business Line:

(A) Industrial Business Revenue:

Industrial business segment is the highest contributor amongst all the other segments. Revenue from the Industrial Business segment increased by 3.4% from $11 Billion in 2017 to $11.4 Billion to 2018. We expect it to decline by 4% in 2019 to $10.9 Billion. Its share of total revenues have hovered around the range of 33%-35% for the last three years, and we believe it will remain within this range in 2019.

Its sub-divisions, with our forecast for revenues in 2019 are as follows:

  1. Adhesives and Tapes $4.1 Billion (37.6%)
  2. Automotive and Aerospace $1.8 Billion (16.8%)
  3. Automotive Aftermarket $1.5 Billion (13.4%)
  4. Abrasives $1.6 Billion (14.7%)
  5. Advanced Materials $1.1 Billion (10.1%)
  6. Separation and Purification $0.8 Billion (7.4%)

 

 

Adhesive & Tapes

  • Adhesive and Tape is the most significant contributor to the overall revenue.
  • Revenue from Adhesive & Tapes increased by 3.1% from $4.1 Billion in 2017 to $4.3 Billion in 2018 but is likely to decrease by 4% to $4.1 Billion in 2019.
  • It is expected to form 37.6 % of the total revenue of the industrial business segment and 12.7% of the total revenue in 2019.

Data around trends in revenues for 3M’s Adhesive & Tapes division with the corresponding reporting divisions for competitors Henkel and Illinois Tools Works are available in our interactive dashboard.

 

(B) Safety & Graphics Business Revenue:

Revenue from Safety & Graphics segment increased 9% from $5.8 Billion in 2017 to $6.3 Billion to 2018 but is expected to decline by 2% in 2019 to $6.2 Billion. Its share in revenue has hovered around the range of 18%-20% for the last three years.

(C) Health Care Business Revenue:

Revenue from the Health Care segment increased by 2.9% from $5.4 Billion in 2017 to $5.6 Billion to 2018 and is expected to increase by 4% in 2019 to $5.8 Billion. Its share in revenue is hovering around the range of 17%-18% for the last three years.

 

Additional information about revenues for 3M’s Electronic & Energy Business and Consumer Business segments are available in our interactive dashboard.

 

 

 

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