3M Aerospace, part of 3M Company (MMM - Analyst Report), meets the problem of substructure erosion in aircraft areas, like lavatories, galleys and doorways, which are frequently exposed to moisture through introduction of 3M™ Polyurethane Protective Tapes. These tapes cover the floor panel joints and the larger areas are protected from moisture by these wide-area tapes.
With the constant erosion, the floor panels and beams in the substructure are required to be replaced. These replacements costs about $30,000 to $100,000 per aircraft, as such protection is very essential.
The 3M™ Polyurethane Protective Tapes resists the spread of fire and have long service life. The tapes are used for seam sealing, wide wet area protection and beam protection and can be easily and quickly installed. It also meets the new policy of the FAA.
3M is globally recognized for its innovations, which are supported by some of its well-known brands, such as Nexcare, Post-it, Scotch, Scotch-Brite, and Scotchgard. We believe that continued capital expenditure with new product launches should bolster its prospects across most end markets.
However, the company’s growth objectives are largely dependent on timing and market acceptance of its new product offerings, including its ability to continually renew its pipeline of new offerings and bring those to the market at acceptable price points. Further, the results have been impacted by worldwide economic and capital market conditions.
3M Company, together with its subsidiaries, operates as a diversified technology company with manufacturing operations spread over 60 countries worldwide. It has more than 35 business units organized into six segments: Consumer and Office, Display and Graphics, Electro and Communications, Healthcare, Industrial and Transportation, and Safety, Security and Protection Services Business. The major competitors of 3M are Avery Dennison Corporation (AVY - Analyst Report), EI DuPont de Nemours & Co. (DD - Analyst Report) and Johnson & Johnson (JNJ - Analyst Report).
We continue to maintain a Neutral rating on 3M Company for the long term and a Zacks #4 Rank (Sell recommendation) over the next one- to- three months.