3M stock jumps after naming new CEO
3M (MMM) shares are on the rise after the company named William Brown, the former Chairman and Chief Executive Officer of L3Harris Technologies, as its new CEO. He replaces Michael Roman, who will become the Executive Chairman of 3M's board. The changes will go into effect on May 1. It comes at a time when the materials company is battling lawsuits related to "forever chemicals" and is preparing to spin off its healthcare unit.
Yahoo Finance's Seana Smith and Brad Smith discuss the announcement in the video above.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
[AUDIO LOGO]
SEANA SMITH: Shares of 3M are jumping nearly 5% in today's trading. Now the industrial conglomerate tapping Bill Brown, former leader of L3Harris Technologies, as its next CEO on hopes that the newcomer is going to be able to stop the slowing sales, regain momentum, and also stop the fallout here from multiple lawsuits.
Now the current CEO Mike Roman will be stepping away from his position in May, becoming 3M's Executive Chairman. So you can see, still staying on board in executive chairman capacity, but releasing the CEO responsibilities. And Brad, this comes after what has been a very tumultuous and tough couple of years here for 3M. Tough several months here.
We know that the company is planning to spin off its health care division. That's happening on April 1, but of course, the litigation issues, the battles that they are fighting there over the forever chemicals, which 3M had manufactured for years and years and years-- that viewed as a real risk and a headwind here for the company.
BRAD SMITH: Yeah, it'll be interesting what his perhaps 6-month to 12-month strategy once he gets in this role really looks like, and what that translates through to shareholder value for 3M as well. But something for both of us to consider here and many of our viewers out there to the extent that you are fans of the state of Pennsylvania.
Solid mainline energy from this guy. Has his master's degree as a mechanical engineering from Villanova University. Also went to the University of Pennsylvania as well. So all right, cool, PA UP.
SEANA SMITH: And that's all that matters at the end of the day. But not-- in a serious note, though--
BRAD SMITH: We're biased a little bit.
SEANA SMITH: Yeah, just a little bias there with the Philadelphia background, but keep 3M on your radar. Among the top trending tickers here on Yahoo Finance. Again, shares moving to the upside on the news of the new CEO.
