The ratings on St. Paul, Minn.-based 3M Co. reflect its leading market positions, good product diversity, and strong financial profile. With over 60,000 products for the industrial, consumer, and life-sciences markets, and its global presence, 3M is able to generate stable earnings and cash flow over business cycles. 3M excels at developing new products and leveraging key core technologies such as adhesives, films, and abrasives, resulting in returns on capital consistently exceeding 30%. 3M experienced nearly 10% sales growth for fiscal 2004, with 6% local currency growth supplemented by a 4% foreign currency exchange effect. Full-year adjusted EBITDA margins improved to about 28%, from 26% in the year-earlier period. Ongoing process improvements in manufacturing and asset turnover account for a
