3M Company
(
MMM
), a globally diversified technology company, has reorganized its
business groups to better serve its operating market. The company
had been operating through six business groups: Consumer and
Office, Display and Graphics, Electro and Communications,
Healthcare, Industrial and Transportation, Safety, Security and
Protection Services Business.
After the restructuring the company will operate through five
business groups: Consumer (2011 sales of $4.2 billion), Industrial
($9.6 billion), Health Care ($5.0 billion), Safety & Graphics
($5.5 billion), and Electronics & Energy ($5.7 billion). The
last two segments have been newly formed.
The restructured groups are effective immediately. The company
will be providing the restated historical figures for the two new
segments from first quarter of 2013. Safety & Graphics group
will comprise nine operating divisions (3M Touch Systems,
Communication Markets, Electrical Markets, Electronic Solutions,
Electronics Markets Materials, Infrastructure Protection, Mobile
Interactive Solutions, Optical Systems and Renewable Energy).
Electronics & Energy will have eight operating divisions
(Architectural Markets, Building & Commercial Services,
Commercial Graphics, Industrial Mineral Products, Mining, Oil &
Gas Solutions, Occupational Health & Environmental Safety,
Security Systems and Traffic Safety Systems). Along with this
reshuffle, the company also made some changes in its leadership
positions.
Through this reorganization the company believes that it will be
able to provide enhanced services to its customers globally. 3M,
which now operates in as many as 65 countries worldwide, expects to
expand its presence in the markets being served by it. Further, the
company will also be able to compete better in its operating
markets, taking full advantage of the opportunities for innovation
and commercialization. The major competitors of 3M are
Avery Dennison Corporation
(
AVY
),
EI DuPont de Nemours & Co.
(
DD
) and
Johnson & Johnson
(
JNJ
).
The company also announced that it has dropped its plan to
acquire Avery Dennison's Office and Consumer Products business. The
agreement entered into by the two companies has been
terminated.
We continue to maintain a Neutral rating on 3M Company for the
long term and a Zacks #3 Rank (Hold recommendation) over the next
one-to-three months.
AVERY DENNISON (AVY): Free Stock Analysis
Report
DU PONT (EI) DE (DD): Free Stock Analysis
Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis
Report
3M CO (MMM): Free Stock Analysis Report
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