3M realigns business structure
Shuffling is ‘natural outcome of corporate strategy’, says CEO
Consistent with what it called its "strategy of building relevance and presence in the marketplace", 3M today announced a realignment of its major business groups.
The new structure will be comprised of five business groups: Consumer (2011 sales of $4.2bn), Industrial ($9.6bn), Health Care ($5.0bn) and two newly formed business groups: Safety & Graphics ($5.5bn), and Electronics & Energy ($5.7bn). Previously, the company operated six major business segments.
"The change is a natural outcome of our strategy to increase relevance to our customers and to broaden our presence in the markets we serve," said Inge Thulin, 3M chairman, president and chief executive officer. "By building scale more broadly, we create critical mass in each business group to take full advantage of innovation and commercialisation opportunities."
The company also announced new leadership roles for a number of its senior leaders.
"3M's strong, diverse leadership team has performed very well and very consistently," Thulin said. "This realignment not only matches our leaders' proven skills with new opportunities, but also improves our competitiveness in the marketplace."
The new structure is effective immediately, with segment reporting for the new organisation effective from 1 January, 2013. In the first quarter of 2013, subsequent to filing its annual 10K, the company will communicate restated historical financial results for the new business groups.