3M realigns business units to house $22 billion in electronics, transportation, industrial, safety products
3M this month announced the realignment of the company from five to four business segments.
On March 18, 3M (NYSE: MMM) announced the realignment of the company from five to four business segments. In a news release, the company said the new alignment will enable it 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.”
Per its statement, 3M said its new corporate 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.
Per 3M: "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."
As noted in reporting from CablingInstall's sister brand, Lightwave, 3M used OFC 2019 in San Diego earlier this month to show off its Expanded Beam Optical Connector System. The Expanded Beam Optical Ferrule uses a non-contact optical coupling which, in combination with the connector design, reduces sensitivity to dust and improves signal integrity, says the company. The design therefore reduces the need for maintenance and cleaning. The Expanded Beam Optical Connector is available in single-mode fiber (1310 nm) and multimode fiber (850 nm) versions. 3M says it is working with inspection tool providers EXFO and Sumix to develop adapters for their respective tools, inspection images, and pass or fail criteria for the fiber-optic connectors.
In 2018, substantially all of 3M’s Communication Markets Division was acquired by Corning in a cash transaction valued at approximately $900 million.
This month, 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.”