Spin off electronics to “create value”
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You forgot one thing: 3M held margins in many businesses for decades. Even in bad years for growth 3M maintained profit margins most of their competitors would ki-l for. Any outsider who got to see 3M's margins by business would be utterly shocked how much profit many of the 'ancient' businesses Wall Street wants to get rid of still hold.
As an anecdote, in my last 3M division we held nearly 4 times the gross margin of our larger (by sale dollars) chief rival. Even as the smaller player 3M made over twice as many profit dollars every year.
3M operated as if it still had its buffer of new products, new technology, high market margins and employee & customer loyalty and engagement. Without any of those buffering elements against liabilities, litigations and a slowing market, it is doomed.
Post ID: @bmv+1sJWVyZC
I have not been at 3M long enough to know the “old 3M”. The 3M I work at is toxic, with poor leadership and leadership that protects its own.
3M failures in the past had no impact because we had a steady stream of new products. Increasing revenue and margins, great cash flow for new products and growth, hiring the best and brightest from the Midwest for US HQ. During these years, there were mistakes and missteps. These extra costs were not an issue as money was rolling in hard due to continous success.
Now, we seem to hate all characteristics from 3M's past. These new 3M strategies and tactics have failed horribly.
*Continuous stream of layoffs
*Failed reorganization called "Advance 3M"
*Revenue is shrinking
*High focus on reducing cost
*No new products, reducing r&d
*Frequent ethics and compliance failures
*Unfair promotions
*Toxic work environment
*Continuous state of fear and distrust
*Poor communication from leadership
If you hate what 3M was in the past, you'll love the present.
3M is known to be slow in market. Like SAP rollout. Think its like 15 years(?) started and it is not complete yet? Heard they on hold for last few countries like China India etc
Chemours only agreed to $1 billion while 3M agreed to $10 billion. As DuPont spins into more pieces, it will be increasingly difficult to reach into each separately owned and operated company. 3M provides a large, willing to pay source for MDL cases. We have had 10 years to prepare. One spin that did not hit its originally communicated spin date. We are a slow turtle 🐢 that will not win the race. Look for more PFAS claims and liability.
Does it mean only Chemours will get sued for PFAs related, and DuPont would not?
July 1, 2015 /PRNewswire/ -- Today DuPont announced it has completed the separation of its Performance Chemicals segment through the spin-off of The Chemours Company ( Chemours ). Chemours begins "regular way" trading today on the New York Stock Exchange (NYSE) under the symbol "CC".Jul 1, 2015
3M was 9 years late taking action on separating PFAS from unimpacted businesses. DuPont successfully protected assets while our leadership rode the gray train. We are 9 years late. Anything announced in the next 24 months will be 10 to 11 years late. Who is steering this ship?
There are no true visionaries any more, just consultants telling figureheads what to do. Kearny will look at GE and tell 3M what to do.
3M will follow GE. Spinoff HC, retain 19.9% then sell shares later. More splits to come, just watch GE to see 3M execs ideas.
DuPont Announces Plan to Separate into Three Independent, Publicly Traded Companies
MAY 22, 2024
*Tax-free separations create independent, focused Electronics and Water companies that are global leaders in their respective industries
*New DuPont will remain a premier diversified industrial company with industry-leading brands and solutions
3M needs to spin off more from our sinking ship. Spinoff better than job eliminations. Executives greedy and likely want status quo.