3M Co. Chief Executive George Buckley might shuffle more of his management team in the next few months after making his first round of changes this week, according to Merrill Lynch & Co. analyst John Inch.
“Yesterday’s shuffle was the first of others to come over the coming year,” Inch wrote in a note to clients Wednesday. “We consider these changes necessary for George Buckley to recast 3M based on the company’s strategic global growth initiatives.”
Buckley shifted five of his deputies into new posts after one official decided to retire from 3M, the maker of more than 50,000 products from Post-it Notes to electronic road signs.
Buckley was formerly the CEO at Lake Forest-based Brunswick Corp., where he was credited with leading a turnaround that helped more than double the share price of the boat and recreational products-maker.
He took over 3M in December, replacing James McNerney, now the CEO at Chicago-based Boeing Co., and is seeking to revive results after profit came in at the low end of 3M’s already reduced forecast in the second quarter.
Senior Vice President James Mahan, who ran 3M’s supply chain operations, will retire in December after 37 years at the company. The move is “not a coincidence,” and Buckley has been critical of 3M’s logistical and manufacturing “inefficiencies,” Inch said in his report.
Inch didn’t make specific predictions on what changes could come next.
The company shifted around other responsibilities, including moving James Stake to executive vice president for enterprise services. He had run the display and graphics business, which includes the optical film unit that was partly responsible for disappointing results.
3M failed to anticipate demand for optical film used on flat-screen televisions and computer monitors.
3M spokeswoman Jacqueline Berry said the management changes were prompted by Mahan’s retirement and are standard practice. She declined to comment on whether more changes are coming.
On July 25, shares of 3M fell to $68.11, their lowest point in three years, after the second-quarter earnings report. Customers canceled orders for films two weeks before the end of the quarter because of excess inventory, Buckley said in July. The cancellations cut 9 cents a share from earnings.
Shares closed Thursday at $75.43.
In 3M’s other moves, John Woodworth, vice president for Asia Pacific, will take the supply chain post. Jay Ihlenfeld will be senior vice president for Asia.
Frederick Palensky becomes chief technology officer and head of research. Michael Kelly becomes executive vice president of the display and graphics business.
