3M Announces New Business Segments and Leadership Appointments
3M says this realignment strengthens the priorities laid out in its strategic plan and positions the company for long-term growth and value creation for its shareholders.
St. Paul, Minnesota-based 3M announces the realignment of the company from five to four business segments. The company says the move will enable it to better serve its global customers and markets.
The new structure will be comprised of four business segments: Transportation & Electronics, Safety & Industrial, Health Care, and Consumer.
In terms of pressure-sensitive vinyl films used in vehicle and building wraps and window film, and other substrates that 3M manufacturers for use creating signs and graphics, those are under the commercial solutions division and will fall under the Transportation & Electronics umbrella. Also included in this segment are other businesses that serve global transportation and electronic original equipment manufacturer (OEM) customers. This business segment also consists of electronics (display materials and systems, electronic materials solutions), automotive and aerospace, advanced materials, and transportation safety. This segment will have estimated annual revenue of $10 billion.
The Safety & Industrial segment includes businesses that serve the global industrial, electrical and safety markets. This segment consists 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.
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.
“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,” says CEO Mike Roman. “Our new alignment will leverage our business transformation progress, accelerate growth and deliver greater operational efficiencies.”
According to the company, this realignment strengthens its four strategic priorities-portfolio, innovation, transformation, and people and culture-and positions 3M for long-term growth and value creation. 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 that go along with the realignment:
- Ashish Khandpur, is appointed executive vice president, Transportation & Electronics Business Group. Khandpur currently is executive vice president, Electronics & Energy Business Group.
- Michael Vale is appointed executive vice president, Safety & Industrial Business Group. Vale currently is executive vice president, Health Care 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 and development and commercialization, industrial business group.
- 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.
“3M has a highly talented and diverse group of leaders, and today’s appointments position us well for the future,” Roman says. “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 of the industrial business group, and Joaquin Delgado, executive vice president, Consumer Business Group, have announced their intention to retire.
