Consistent with its strategy of building relevance and presence in the marketplace, 3M today announced a realignment of its major business groups to better serve global markets and customers.
The new structure will be comprised of five business groups: Consumer (2011 sales of $4.2 billion), Industrial ($9.6 billion), Health Care ($5.0 billion) and two newly formed business groups: Safety & Graphics ($5.5 billion), and Electronics & Energy ($5.7 billion). 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 IngeThulin, 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 commercialization 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 organization effective January 1, 2013. In first quarter of 2013, subsequent to filing its annual form 10K, the company will communicate restated historical financial results for the new business groups.
Electronics & Energy is led by Executive Vice President Mike Kelly, former head of 3M’s Display and Graphics business. The new business group includes the following operating divisions:
3M Touch Systems.
Electronics Markets Materials.
Mobile Interactive Solutions.
Safety & Graphics is led by Executive Vice President Julie Bushman, former head of 3M’s Safety, Security and Protection Services business. The new business group includes the following operating divisions:
Building & Commercial Services.
Industrial Mineral Products.
Mining, Oil & Gas Solutions.
Occupational Health & Environmental Safety.
Traffic Safety Systems.
Industrial, led by Executive Vice President Brad Sauer, remains unchanged, with the exception of Renewable Energy moving to Electronics & Energy. Sauer formerly led 3M’s Health Care business.
Health Care, led by Executive Vice President Joaquin Delgado, remains unchanged. Delgado formerly led 3M’s Electro and Communications business.
Consumer is also unchanged and will continue to be led by Executive Vice President Mike Vale.
Chris Holmes is named senior vice president, Corporate Supply Chain Operations, succeeding John Woodworth, who has announced his intention to retire. Holmes was formerly executive vice president of Industrial and Transportation business.