3M Co. (NYSE:MMM) has revised its earnings forecast for the first quarter, raising its per-share earnings expectation to up to $2.20 from a previous range of $2 to $2.15.
The company’s shares rose 1% ahead of Wednesday’s market open.
This hike is attributed to the impact of interest from a debt transaction related to the spinoff of 3M’s Solventum healthcare division, as explained by CEO Mike Roman during a JPMorgan industrials conference.
The unit is scheduled to become an independent entity on April 1.
On Tuesday, announced it has chosen Bill Brown, previously the chief executive at L3Harris Technologies, as its new CEO
This decision shows that the industrial corporation is betting on an external leader to help the company navigate a difficult period marked by declining sales and numerous legal challenges.
Following the announcement, the company's stock saw a nearly 7% surge on Tuesday.
Year-to-date, MMM shares have fallen roughly 10% as the company faced multi-billion dollar lawsuits concerning its earplugs and the environmental impact of its "forever chemicals," alongside diminishing demand.
Bill Brown, aged 61, is set to replace Michael Roman as CEO starting May 1. Roman, who has dedicated 35 years to 3M, will transition to the role of executive chairman of the board concurrently.
During Wednesday’s conference, Roman highlighted that the company is advancing in resolving the litigation.
He mentioned that out of nearly 300,000 plaintiffs involved in the earplug lawsuit, fewer than 25 have chosen not to participate in the settlement. Similarly, there's a mid-single digit percentage of opt-outs observed in the settlement process concerning the drinking water utility issue.