I could have sworn that was Carl Icahn at Sheraton Woodbury
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Yes, now need to optimize the pieces - multiple divests coming. Maybe an activist has another path in mind?
Yes get rid of granules. ThT is noncore
Will need to raise more cash. Probably piecemeal business divestitures over next 5 yr.
The “ring fencing” move yesterday will ultimately provide relief for the combat arms hearing protection litigation and will help improve financials down the road. It will likely be considerably more expensive than $1B though. PFAS is another story though. It will remain with “New 3M” and could present even greater potential liability than hearing protection litigation. Really challenging times for 3M. Nobody should be surprised by the company’s attempt to limit liability - the plaintiffs’ bar especially. Lawyers smell blood in the water, back big companies into a corner with thousands of cases, and somehow think the party will never end and the deep pockets are bottomless.
For Q2, 2022 , 3M announced $0.14 in GAAP earnings, and $2.34 in of EPS be charged off to litigation issues. That is 94% of earnings going to litigation settlements and reserves!
This will be the future folks....moving forward, almost every year, 3M will have to have a large part of it's earnings in fines and settlements.
Actually, looks like 2 pieces, no exploratory committee needed. The rest was accurate...
Announce of misses and exploratory committee to find feasibility of splitting the company into 3 pieces to pump the price one last time so execs can sell.
Miss top and bottoms lines