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Conglomerate 3M has named Bill Brown, the former head of L3Harris Technologies, as its next chief executive, betting that an outsider will take the reins amid declining sales and multiple lawsuits. CEO).
The company’s shares rose nearly 7% on Tuesday. Shares fell about 14% this year to the end of the year after 3M agreed to pay billions of dollars to settle lawsuits related to earplugs and “permanent chemicals” in the face of easing demand.
3M’s St. Paul office. (Reuters/Reuters Photo)
Brown, 61, will succeed Michael Roman on May 1. Mr. Roman, a 35-year veteran of the company, will become chairman of the board on the same day.
“3M has brought in an outside CEO, which shows a willingness to change,” Nigel Coe, an analyst at Wolfe Research, said in a note. He added that this would be seen as a welcome move in light of “current trends”.
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3M said in January that it expected full-year profit to be lower than Wall Street expectations, citing a “weak” macro environment.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Hmm | 3M Corporation | 98.72 | +4.69 | +4.99% |
The company’s electronics business, which makes displays for smartphones and tablets, has been particularly hard hit by a slowdown in discretionary spending, primarily in China.
“Bill has a reputation for driving bold strategic moves as well as improving margins and working capital efficiency,” Coe added.
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Mr. Brown, an industry veteran, served as CEO of aerospace and defense technology giant L3Harris from June 2019 to June 2021, before serving as Chairman of the Board for an additional year.
He was CEO of Harris Corp. prior to its merger with L3 and prior to that spent 14 years in various leadership roles at United Technologies.
To cushion the impact of weak demand, 3M has undertaken a major restructuring, including cutting thousands of jobs and making its health care business a publicly traded company.
In August, 3M agreed to pay $6.01 billion between 2023 and 2029 to settle thousands of lawsuits related to Combat Arms earplugs that allegedly caused hearing loss to U.S. military personnel. Agreed.
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In June, the company reached a tentative agreement to pay $10.3 billion to settle water pollution lawsuits related to “forever chemicals.”
