3M Retains Core Business Focus With Portfolio Restructuring
Zacks Investment Research | Jan 14, 2018 09:42PM ET
On Jan 15, we updated the research report on diversified industrial goods manufacturer 3M Company (NYSE:MMM) .
The company’s brands like Nexcare, Post-it, Scotch, Scotch-Brite, ScotchBlue and Filtrete are well recognized names in each household while being market leaders in their respective product categories. With continuous product innovations and investments in R&D, 3M aims to maintain a healthy organic growth. The company’s ability to convert high R&D spends into up-cycle market share gains and strong pricing powers determine its success. In 2018, the company plans to invest approximately $1.9 billion in R&D.
At present, the company is focused on three key metrics namely, portfolio management, investment in innovation and business transformation. For portfolio management, 3M intends to concentrate on its most profit-making and fastest-growing businesses. To this effect, the company has taken steps to prune its businesses from 40 to 24. Since 2012, 3M had done significant portfolio restructuring — divesting assets that no longer fit in its strategy and making newer investments in other more lucrative markets.
With a diligent execution of operational plans, 3M has outperformed the Zacks Investment Research
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