3M Announces New Business Segments and Leadership Appointments
March 18 2019 - 9:00AM
Business Wire
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.
- 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.
- 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.
- 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.
- 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:
- Michael Vale is appointed executive
vice president, Safety & Industrial Business Group. Vale
currently is executive vice president, Health Care Business
Group.
- Ashish Khandpur, is appointed executive
vice president, Transportation & Electronics Business Group.
Khandpur currently is executive vice president, Electronics &
Energy Business Group.
- Mojdeh Poul is appointed executive vice
president, Health Care Business Group. Poul currently is executive
vice president, Safety & Graphics Business Group.
- Paul Keel is appointed executive vice
president, Consumer Business Group. Keel currently is senior vice
president, Business Development and Marketing-Sales.
- 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.
- 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 StatementsThis 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 3MAt 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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3M Investor Contacts:Bruce Jermeland, 651-733-1807Tony
Riter, 651-733-1141or3M Media Contact:Lori
Anderson, 651-733-0831
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