https://www.msn.com/en-us/money/topstocks/3m-company-mmm-targets-25-margin-expansion-launches-1-000-new-products-by-2028/ar-AA1NtvBY?ocid=finance-verthp-feeds
12 replies (most recent on top)
@1vx Winterthur abrasives was sold two weeks ago to Nimbus in Europe.
Ok get rid of anything industrially sounding
Winterthur abrasives also on block
@e2 people have been saying IMPD is on the chopping block since I started 30 years ago… maybe some day it will come true … lol…
This is not the first time this has been tried. Maybe it's different than the time I remember since it's been publicly stated though. Last time the same reviews went through - looking at the margins, etc. But nothing much happened, presumably due to difficulties untangling profit centers.
i did see the margins and growth for all the PCs and was amazed at how low some of them were. Some products had no meaningful growth for years.
No worries with Cruella Deville leading advanced materials it’s to the moon for that biz!
@ck
3 of those groups listed are now conveniently located in the same division (ISD) , along with building and construction/fire protection
I would bet IMPD and ISD are on the chopping block to be sold off
4 plants that are not shared with any other division. No sales channel is shared, no significant technology sharing. It is perfect for separation. From my rough memory IMPD used to run something like 35% gross margin and 15% OI, with big changes to margin based on the US homebuilding business cycle.
From the article I think BB is looking at everything under 50% GM/25% OI as 'not profitable enough', which is a huge part of SIBG (half maybe?)
@ck
Roofing granules is profitable but is self contained in 4 plants and eats capital
I think they will be looking at businesses in only one plant where there isn’t a lot of separation issues
Semi-informed guesses of businesses not likely to be meeting a 25% threshold:
- What is left of diaper tape/fasteners
- Consumer sandpaper
- Roofing granules
- Thinsulate (both of them)
- Packaging tape (maybe margins have improved?)
- The now sold (I guess) PG&F business
Wondering which are the obvious non performing profit centers as of current?
I wouldn’t touch 3M stock with a 39.5-ft pole.