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Letter to the Editor

3M Reorganizing into Seven Business Units

The company, whose products range from Post-It notes and Scotch tape to sandpaper and asthma inhalers, said it would split its largest unit -- transportation, safety and graphics -- into three new businesses with the retirement of manager Ronald Weber, 61.

Safety, security and protection services will be managed by Fred Palensky, 52; display and graphics by Jim Stake, 49, and transportation by Steve Landwehr, 54. All three will assume their new jobs effective Oct. 1, the company said in a statement.

Palensky was formerly head of the company's specialty materials business unit, which is mostly being transferred to the industrial unit.

In addition, 3M named new leadership for two existing business units. Chuck Reich, 60, formerly executive vice president of electro and communications, will succeed John Benson, who is retiring as head of the company's health care business.

Benson, 58, joined 3M in 1968 and has managed its health care businesses since 1998.

Brad Sauer, 43, who has led the company's Six-Sigma quality efforts, will succeed Reich as head of electro and communications. Analysts said the moves are not surprising, given changes in 3M's various businesses.

"You sometimes see a business elevated to segment status, even though it's small, because they don't expect it to be small for long," said John Roberts, an analyst with Buckingham Research Group in a research note.

He said automotive, now a part of transportation, is probably one example. "3M has an exceptionally strong franchise with autobody shops and related markets, and this could be an area of significant acquisition, in my opinion," Roberts said.

He also said the retirements of Benson and Weber are logical, given that both apparently were internal candidates for chief executive.

3M eventually selected General Electric Co. veteran James McNerney, the first outsider in several decades to head the company.

The company also announced the retirement of Paul Guehler, 64, vice president of research and development. He will be replaced by Jay Ihlenfeld, currently executive vice president of Sumitomo 3M.

Its consumer and office business will continue to be led by Moe Nozari, while its industrial unit will still be managed by Harold Wiens.

3M has organized itself into business segments since the early 1980s. The number until now has varied between two and six, with the most recent structure in place for about three years.

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