ST. PAUL, Minn., Dec. 3, 2020 /PRNewswire/ -- As the global economy shifts in the wake of the COVID-19 pandemic,
3M (NYSE: MMM) is advancing its operating model, streamlining its business, and focusing on global trends where
the company will apply science to life in new ways to drive sustainable growth.
"The COVID-19 pandemic has advanced the pace of change and disrupted end markets around the world, increasing the
need for companies to adapt faster," said Mike Roman, 3M chairman and chief executive officer. "At the same
time, we are seeing significant opportunities from our new operating model which we launched at the start of the
year. As a result, we are taking further actions to streamline our operations, positioning us to deliver greater
growth and productivity as global markets emerge from the pandemic."
In January 2020, 3M launched a new global operating model – a significant step in the company's transformation –
which has evolved the way 3M works, enabling the company to be more customer focused and responsive, helping 3M
to lead during the pandemic.
With the actions 3M is announcing today, the company will further enhance its operations and marketing
capabilities. In operations, 3M will eliminate redundancies and better use analytics to drive additional
efficiencies. In marketing, 3M will build on its success in utilizing data insights, accelerating global
marketing programs, and activating digital engagements with customers.
3M will be better positioned to take advantage of global market trends in e-commerce, personal safety, health
care, automotive electrification, and home improvement. At the same time, the company plans to de-prioritize
investments in end markets where growth is slower.
Restructuring and Expected Annual Savings
3M is planning to initiate restructuring actions that will impact all business groups, functions and geographies.
As a result, the company expects to take a total pre-tax charge of $250 to $300 million, with $120 to $150
million in the fourth quarter of 2020. The remainder of the pre-tax charge is currently anticipated to be
incurred primarily in the second half of 2021. 3M anticipates annual pre-tax savings of $200 to $250 million
from these actions, with $75 to $100 million of pre-tax savings in 2021.
The restructuring is expected to impact approximately 2,900 positions globally.
Upcoming Event
3M will participate in the Credit Suisse 8th Annual Virtual Industrials Conference today, Dec. 3, 2020. Mike
Roman, chairman and chief executive officer, and Monish Patolawala, senior vice president and chief financial
officer, will speak at 8:10 a.m. EST.
Forward-Looking Statements
This news release contains forward-looking information about 3M's financial
results and estimates and business prospects that involve substantial risks and uncertainties. You can identify
these statements by the use of words such as "anticipate," "estimate," "expect," "aim," "project," "intend,"
"plan," "believe," "will," "should," "could," "target," "forecast" and other words and terms of similar meaning
in connection with any discussion of future operating or financial performance or business plans or prospects.
Among the factors that could cause actual results to differ materially are the following: (1) worldwide
economic, political, regulatory, international trade and other external conditions and other factors beyond the
Company's control, including natural and other disasters or climate change affecting the operations of the
Company or its customers and suppliers; (2) risks related to public health crises such as the global pandemic
associated with the coronavirus (COVID-19); (3) foreign currency exchange rates and fluctuations in those rates;
(4) liabilities related to certain fluorochemicals, including lawsuits concerning various PFAS-related products
and chemistries, and claims and governmental regulatory proceedings and inquiries related to PFAS in a variety
of jurisdictions; (5) legal and regulatory proceedings and legal compliance risks involving the Company and/or
third parties, including significant developments that could occur in the legal and regulatory proceedings
described in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2019, and any subsequent
quarterly reports on Form 10-Q (the "Reports"); (6) competitive conditions and customer preferences; (7) the
timing and market acceptance of new product offerings; (8) materials vulnerability and the availability and cost
of purchased components, compounds, raw materials and energy (including oil and natural gas and their
derivatives) due to shortages, increased demand or supply interruptions, manufacturing site disruptions
(including those caused by natural and other disasters and other events); (9) problems or delays with the phased
implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions
to the Company's information technology infrastructure; (10) the impact of acquisitions, strategic alliances,
divestitures and other unusual events resulting from portfolio management actions and other evolving business
strategies, and possible organizational restructuring; (11) operational execution, including scenarios where the
Company generates fewer productivity improvements than estimated; (12) financial market risks that may affect
the Company's funding obligations under defined benefit pension and postretirement plans; and (13) the Company's
credit ratings and its cost of capital. Changes in such assumptions or factors could produce significantly
different results. A further description of these factors is located in the Reports under "Cautionary Note
Concerning Factors That May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A (Annual Report)
and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports), as updated by applicable Current Reports on Form
8-K. The information contained in this news release is as of the date indicated. The Company assumes no
obligation to update any forward-looking statements contained in this news release as a result of new
information or future events or developments.
About 3M
At 3M, we apply science in collaborative ways to improve lives daily as our employees
connect with customers all around the world. Learn more about 3M's creative solutions to global challenges at
www.3M.com or on Twitter @3M or @3MNews.
Contacts
Investor Contacts:
Bruce Jermeland, 651-733-1807
Or
Tony Riter, 651-733-1141
Media Contact:
Stephen Sanchez, 651-737-5967
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SOURCE 3M