March 18, 2019 / 1:27 PM / 7 months ago

3M to restructure business into four units

FILE PHOTO: The logo of Down Jones Industrial Average stock market index listed company 3M is shown in Irvine, California April 13, 2016. REUTERS/Mike Blake/File Photo

(Reuters) - 3M Co said on Monday it would restructure its business into four operating units from five, as it looks to sharpen its focus on customers and boost growth.

The company’s shares fell 1 percent in early trading after it announced the four units - safety & industrial, transportation & electronics, healthcare and consumer.

Earlier, the company’s industrial, and safety & graphics businesses were separate.

The maker of Scotch tape and Post-It notes, which reported total sales of $32.77 billion for the last fiscal year, said it expects annual revenue from its safety & industrial unit to be $12 billion, and $7 billion from its transportation & electronics unit.

The U.S. manufacturer has been struggling with a slowdown in its Chinese business, and said in January it saw sluggish sales in its global automotive and electronics business led by weak customer demand in China.

3M, which makes everything from adhesive tapes to air filters, will start reporting its financial results under this new structure from the second quarter of 2019.

3M also said James Bauman, executive vice president of its industrial business, and Joaquin Delgado, executive vice president of its consumer business, would retire.

Reporting by Sanjana Shivdas in Bengaluru; Editing by Maju Samuel

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