The industrial multinational 3M has named Bill Brown, the former CEO of L3Harris Technologies, as its next CEO and is counting on an outsider to steer it through a period of diminishing earnings.
Bill Brown, the former CEO of L3Harris Technologies, has been appointed by industrial conglomerate 3M as its next CEO. The business is banking on an outsider to lead it through a phase of declining revenues and the aftermath of several lawsuits.
On Tuesday, the company’s stock increased by almost 7%. Since 3M agreed to pay billions to settle lawsuits pertaining to its earplugs and “forever chemicals” in the face of declining demand, they have lost almost 14% of their value this year as of the most recent close.
On May 1, Brown, 61, will take over for Michael Roman. On the same day, Roman, a 35-year corporate veteran, will take on the role of executive chairman of the board.
In a letter, Wolfe Research analyst Nigel Coe stated, “3M has brought in an external CEO, which indicates the desire for change.” He added that it would be viewed as a positive move during “such challenging financial and stock market performance.”
3M predicted lower-than-expected full-year results in January, blaming a “muted” economic environment.
The electronics division, which produces screens for tablets and smartphones, has been particularly badly impacted by the decline in discretionary expenditure, which is primarily occurring in China.
In addition to making audacious strategic decisions, Bill is known for boosting margin and working capital efficiency, “Coe continued.
An experienced professional, Brown served as CEO of L3Harris, a leader in aerospace and defense technology, from June 2019 to June 2021. After that, he served as executive chair for an additional year.
Before Harris Corp. merged with L3, he served as its CEO. Prior to that, he held a variety of executive positions with United Technologies for 14 years.
3M has implemented a significant reorganization that includes the loss of thousands of positions and the spinoff of its healthcare division into a publicly traded company in an effort to lessen the effects of a slowdown in demand.
In August, 3M consented to settle hundreds of complaints pertaining to its Combat Arms earplugs, which were purported to have damaged U.S. military service members’ hearing, by paying $6.01 billion between 2023 and 2029.
The business tentatively agreed to pay $10.3 billion to settle the water bill in June.
3M has implemented a significant reorganization that includes the loss of thousands of positions and the spinoff of its healthcare division into a publicly traded company in an effort to lessen the effects of a slowdown in demand.
In August, 3M consented to pay $6.01 billion between 2023 and 2029 to resolve hundreds of cases pertaining to their Combat Arms earplugs, which were said to have caused hearing impairments in members of the US military.
A tentative agreement was reached in June by the corporation to settle water pollution lawsuits related to “forever chemicals” for $10.3 billion.
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