Printer Friendly

3M STRATEGIES FOR GROWTH OUTLINED

 3M STRATEGIES FOR GROWTH OUTLINED
 MAPLEWOOD, Minn., Sept. 17 /PRNewswire/ -- Focus on high potential


products, manufacturing processes and other "pacing programs" will help drive 3M (NYSE: MMM) growth, L.D. DeSimone, 3M chairman and CEO, told an audience of 85 security analysts at 3M Center Thursday.
 "We're putting more emphasis on setting priorities in product development and bringing high-impact programs to fruition more quickly," DeSimone said.
 Pacing programs are established when 3M divisions identify opportunities that will make a significant difference in the division's sales and profit growth, and perhaps change the basis of competition. Once identified, pacing programs are provided all the resources necessary for timely achievement.
 Details of three pacing programs were presented to analysts: Digital Color Pre-press Proofing Systems, Scotch-Brite brand No Rust Wool Soap Pads, and the Scotchprint brand Electronic Graphics System.
 "We're really talking about setting clearer priorities," DeSimone said, "As we do that, we still save room for the unexpected and create enough leeway to capitalize on individual creativity. Some great ideas come from an individual spark -- and not always from a large group effort."
 DeSimone said there are currently 150 pacing programs under way throughout the company.
 Pacing programs support one of 3M's key strategies: faster, more efficient product development. DeSimone outlined three other key strategies: increased penetration of markets outside the U.S., an even stronger focus on customer satisfaction and cost control.
 Giulio Agostini, senior vice president, Finance, discussed the need for productivity gains and cost control, noting that, in order to meet its aggressive financial goals, the company must recover about three points of operating margin.
 Productivity improvement is a must, he said, because "we can't count on strong economic growth over the next few years." He discussed efforts to achieve improvements in manufacturing and administrative areas.
 Agostini said unit volume in 3M's international operations increased about 5 percent in its fiscal third quarter ended July 31, with total international sales up about 13 percent, helped by currency effects. In the U.S., sales were "basically flat" during the first two months of the third quarter.
 Sales were down slightly in July, in part because of comparisons with a strong July last year. U.S. volume was up about 2 percent in August, and September started off well, Agostini said.
 "A lot depends on the economic situation," he said. "It now appears that 1992 earnings could be at the low end of the current range of security analysts' estimates." This range is $5.70 to $5.80 a share.
 Other presenters were Dr. M. George Allen, senior vice president, Research and Development; Larry E. Eaton, executive vice president, Information, Imaging and Electronics Sector; Operations; Dr. Ronald Mitsch, executive vice president,Harry Hammerly, executive vice president, International Industrial and Consumer Sector; and Dr. Jerry Robertson, executive vice president, Life Sciences Sector.
 -0- 9/17/92
 /CONTACT: M. A. Fenner of 3M, 612-733-9242/
 (MMM) CO: 3M ST: Minnesota IN: SU:


KH -- MN006 -- 0500 09/17/92 09:46 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 17, 1992
Words:497
Previous Article:TEMPLETON GLOBAL GOVERNMENTS INCOME TRUST DECLARES DIVIDEND
Next Article:CEDAR FAIR, L.P. DECLARES 15.6 PERCENT INCREASE IN QUARTERLY CASH DISTRIBUTION
Topics:


Related Articles
3M PLANS FOR 'QUALITY' LONG-TERM GROWTH
3M Targets Double-Digit Earnings Growth; Outlines Plan for Growth, Productivity Improvement
3M Reorganizes Enterprise Network Business to Offer Full Line of Networking Solutions and Accelerate Growth.
3M Acoustic Solutions' Highly Successful Growth Strategy in the North American Acoustic Nonwovens Market Recognized By Frost & Sullivan.
3M announces acquisition.
3M quarterly sales soar.
3M reports sales, earnings.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters