Today, 3M (NYSE:MMM) announced a significant reshuffling of its executive leadership. Jeff Lavers and Ashish Khandpur, key executives in the Health Care Business Group and Transportation and Electronics Business Group respectively, are set to depart their roles by Dec. 1, 2023. Their departure aligns with a planned Health Care spinoff slated for early 2024.
Following these changes, Bryan Hanson, who has been recruited from Zimmer Biomet, is set to oversee the health care business's planned spin-off. Meanwhile, Wayde McMillan, former CFO of Insulet (NASDAQ:PODD), is also expected to play a key role during this transition period.
While the search for Khandpur's replacement continues, interim reporting lines have been assigned to Mike Roman, 3M's Chairman and CEO. Despite the leadership shake-up, Roman expressed confidence in the company's strategic positioning and future prospects. He acknowledged the pivotal contributions of the departing executives and affirmed his belief in the bright future of 3M, a global medtech powerhouse generating over $8 billion annually.
InvestingPro Insights
As we delve deeper into the trajectory of 3M (NYSE:MMM), InvestingPro provides some valuable insights. A notable InvestingPro Tip reveals that 3M has maintained its dividend payments for an impressive 53 consecutive years, reflecting its strong commitment to shareholders. This is significant considering the upcoming leadership changes and planned Health Care spinoff.
However, it's worth noting that 12 analysts have revised their earnings downwards for the upcoming period, as another InvestingPro Tip suggests. This could be due to the anticipated sales decline in the current year, as also suggested by InvestingPro. The company has also been experiencing a decline in revenue at an accelerating rate.
Interestingly, despite not being profitable over the last twelve months, analysts predict the company will be profitable this year. This could be attributed to the strategic changes and the company's position as a prominent player in the Industrial Conglomerates industry.
For more detailed insights and additional tips, consider exploring InvestingPro's comprehensive suite of offerings. This brief analysis was based on just two of the ten available InvestingPro Tips for 3M.
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