3M (NYSE:MMM) share rose more than 4% yesterday after the company updated its earnings outlook for the first quarter, now anticipating earnings per share to reach as high as $2.20, up from the previously forecasted range of $2.00 to $2.15.
This upward revision is largely due to the benefits accruing from interest related to a debt transaction connected with the spinoff of its healthcare division, Solventum, as mentioned by CEO Mike Roman during a conference held by JPMorgan. The healthcare unit is expected to operate as a standalone company starting April 1.
Additionally, 3M announced the appointment of Bill Brown, formerly the CEO at L3Harris Technologies, as its new chief executive. This move indicates the conglomerate’s intention to bring in an experienced outsider to steer the company through a challenging phase characterized by sales downturns and a series of legal hurdles.