New Structure Increases Customer Focus, Agility and Productivity
3M today announced the realignment of the company from five to four
business segments. The new alignment will enable the company to better
serve global customers and markets.
“We are continuing to advance 3M into the future, and today’s actions
will strengthen our ability to meet the fast-moving needs of our
customers,” said 3M CEO Mike Roman. “Our new alignment will leverage our
business transformation progress, accelerate growth and deliver greater
operational efficiencies.”
The new structure will be comprised of four business segments: Safety &
Industrial, Transportation & Electronics, Health Care, and Consumer.
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Safety & Industrial: This segment includes businesses that serve the
global industrial, electrical and safety markets. This business
segment will consist of personal safety, adhesives and tapes,
abrasives, closure and masking systems, electrical markets, automotive
aftermarket, and roofing granules. This segment will have estimated
annual revenue of $12 billion.
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Transportation & Electronics: This segment includes businesses that
serve global transportation and electronic original equipment
manufacturer (OEM) customers. This business segment will consist of
electronics (display materials and systems, electronic materials
solutions), automotive and aerospace, commercial solutions, advanced
materials, and transportation safety. This segment will have estimated
annual revenue of $10 billion.
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Health Care: This business segment serves the global healthcare
industry and will include medical solutions, oral care, separation and
purification sciences, health information systems, drug delivery
systems, and food safety. This segment will have estimated annual
revenue of $7 billion.
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Consumer: This business serves global consumers and consists of home
improvement, stationery and office supplies, home care, and consumer
health care. Home improvement will also include the retail auto care
business that was previously a part of the company’s automotive
aftermarket business. This segment will have estimated annual revenue
of $5 billion.
This new segment structure strengthens the company’s four strategic
priorities – Portfolio, Innovation, Transformation, and People and
Culture – and positions 3M for long-term growth and value creation.
These priorities are key components of the 3M value model and how the
company drives performance today and into the future. 3M will start
reporting its financial results under this new structure starting with
the second quarter of 2019.
3M also announced the following leadership appointments effective April
1, 2019:
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Michael Vale is appointed executive vice president, Safety &
Industrial Business Group. Vale currently is executive vice president,
Health Care Business Group.
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Ashish Khandpur, is appointed executive vice president, Transportation
& Electronics Business Group. Khandpur currently is executive vice
president, Electronics & Energy Business Group.
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Mojdeh Poul is appointed executive vice president, Health Care
Business Group. Poul currently is executive vice president, Safety &
Graphics Business Group.
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Paul Keel is appointed executive vice president, Consumer Business
Group. Keel currently is senior vice president, Business Development
and Marketing-Sales.
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Denise Rutherford is appointed senior vice president, Corporate
Affairs. Rutherford currently is vice president, Research &
Development and Commercialization, Industrial Business Group. She has
led businesses and functions around the world including in Asia and
Latin America. Rutherford earned her Ph.D. from Colorado State and
holds bachelor’s and master’s degrees from Murray State.
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Stephen Shafer is appointed senior vice president, Business
Development and Marketing-Sales. Shafer currently is vice president
Greater China Area of 3M and managing director of 3M China. His
previous experience includes leading 3M’s business transformation
deployment, and leadership roles in business and strategy. Shafer
earned his MBA from Harvard Business School and his bachelor’s degree
from Northwestern.
“3M has a highly talented and diverse group of leaders, and today’s
appointments position us well for the future,” Roman said. “I have
confidence in each of these leaders as they take on new and expanded
roles, and look forward to working with them to create greater value for
customers, shareholders and 3M.”
In addition, James Bauman, executive vice president, Industrial Business
Group, and Joaquin Delgado, executive vice president, Consumer Business
Group, have announced their intention to retire.
“Throughout their distinguished careers, Jim and Joaquin have built and
led businesses, developed others and created tremendous value for our
customers,” Roman continued. “On behalf of all 3Mers, I thank Jim and
Joaquin for their contributions, and wish them well in the future.”
Forward-Looking Statements
This news release contains
forward-looking information about 3M's financial results and estimates
and business prospects that involve substantial risks and uncertainties.
You can identify these statements by the use of words such as
"anticipate," "estimate," "expect," "aim," "project," "intend," "plan,"
"believe," "will," "should," "could," "target," "forecast" and other
words and terms of similar meaning in connection with any discussion of
future operating or financial performance or business plans or
prospects. Among the factors that could cause actual results to differ
materially are the following: (1) worldwide economic, political, and
capital markets conditions and other factors beyond the Company's
control, including natural and other disasters or climate change
affecting the operations of the Company or its customers and suppliers;
(2) the Company's credit ratings and its cost of capital; (3)
competitive conditions and customer preferences; (4) foreign currency
exchange rates and fluctuations in those rates; (5) the timing and
market acceptance of new product offerings; (6) the availability and
cost of purchased components, compounds, raw materials and energy
(including oil and natural gas and their derivatives) due to shortages,
increased demand or supply interruptions (including those caused by
natural and other disasters and other events); (7) the impact of
acquisitions, strategic alliances, divestitures, and other unusual
events resulting from portfolio management actions and other evolving
business strategies, and possible organizational restructuring; (8)
generating fewer productivity improvements than estimated; (9)
unanticipated problems or delays with the phased implementation of a
global enterprise resource planning (ERP) system, or security breaches
and other disruptions to the Company's information technology
infrastructure; (10) financial market risks that may affect the
Company’s funding obligations under defined benefit pension and
postretirement plans; and (11) legal proceedings, including significant
developments that could occur in the legal and regulatory proceedings
described in the Company's Annual Report on Form 10-K for the year ended
Dec. 31, 2017, and any subsequent quarterly reports on Form 10-Q (the
“Reports”). Changes in such assumptions or factors could produce
significantly different results. A further description of these factors
is located in the Reports under "Cautionary Note Concerning Factors That
May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A
(Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly
Reports). The information contained in this news release is as of the
date indicated. The Company assumes no obligation to update any
forward-looking statements contained in this news release as a result of
new information or future events or developments.
About 3M
At 3M, we apply science in collaborative ways to
improve lives daily. With $33 billion in sales, our 93,000 employees
connect with customers all around the world. Learn more about 3M’s
creative solutions to the world’s problems at www.3M.com or
on Twitter @3M or @3MNews.
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