Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Caterpillar Inc.    CAT

News SummaryMost relevantAll newsSector newsTweets 

New 3M CEO eyes natural resources, aero for growth

share with twitter share with LinkedIn share with facebook
share via e-mail
04/24/2012 | 11:18pm CEST

3M Co (>> 3M Company) is eager to make a deeper foray into natural resources and aerospace markets to expand beyond consumer products like Scotch Tape, sand paper and touch-screen displays, new chief executive Inge Thulin said Tuesday.

3M Co (>> 3M Company) is eager to make a deeper foray into natural resources and aerospace markets to expand beyond consumer products like Scotch Tape, sand paper and touch-screen displays, new chief executive Inge Thulin said Tuesday.

The U.S. manufacturer is planning an immediate push into markets that service customers dealing with the gas, oil, mining and water industries by forming a new division called "natural resource management and extraction."

"We have been in those markets for some time," Thulin told analysts during a conference call after posting quarterly earnings on Tuesday. "But at least in my mind, and the organization's mind here in total, we have not given full attention in terms of additional investment in order to accelerate our growth."

Other companies have been looking to boost business in the natural resources sector. Caterpillar Inc (>> Caterpillar Inc.), for instance, has in recent years increased profit by diving into the area via acquisitions in the mining sector.

"If you look at the play for natural resources, it's a huge market globally," said Kevin Walkush, business analyst for Jensen Investment Management. He cited an "energy renaissance" taking place in the United States, with natural gas and oil exploration increasing, as one example of why 3M would more aggressively chase this business.

Jensen owns 3 million shares of 3M.

Thulin has been at 3M's helm for two months and presided over his first quarterly earnings report on Tuesday. Profit came in ahead of Wall Street expectations and 3M raised its full-year outlook, sending shares up 1.6 percent to close at $88.49.

Thulin's heightened focus on natural resources comes as he looks to manage a set of challenges inherited from predecessor George Buckley.

While Buckley is credited with reshaping 3M by refining the focus, boosting growth targets and increasing research and development budgets, the company's volatile display and graphics division is struggling. And sales fell in Asia Pacific.


3M will also seek further inroads in the aerospace sector. Thulin believes the company's product range, including composite films, abrasives and personal protection devices, can help it jump-start sales to aerospace companies.

"That's a good opportunity for us to enable lighter, safer, quieter aircraft, constructed faster. We believe with additional technologies that we can accelerate that even more - meaning more focus and investment will go into that business," he said.

3M has six main operating divisions, such as office supplies or healthcare, and a myriad of subdivisions, such as food safety or optical systems.

A spokeswoman for 3M said it will focus on better grouping its natural resources products, such as cement products, pipeline protectants and liquid filtration, to more effectively sell to customers in the natural resources sector. The move should allow the company to provide more managerial focus on underdeveloped businesses without shifting investment out of another sector.

3M had done this with its automotive business by bundling products such as window coatings and paint supplies under the same umbrella, Morningstar equities analyst Adam Fleck said. The company now points to automotive as a key growth business.

"If you kind of think about the industrial space as a whole they have a lot of opportunity," Fleck said. This move "helps them to focus from a managerial perspective," he said.

(Reporting By John D. Stoll in Detroit; editing by Matthew Lewis)

By John D. Stoll

Stocks treated in this article : Caterpillar Inc., 3M Company
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on CATERPILLAR INC.
03:20a CATERPILLAR : ONEFIRE looks to set up digital shop in Warehouse District
03:20a PROXY : Doug Oberhelman will get new office at Caterpillar
03:20a CATERPILLAR : women's initiative goes global
04/27 CATERPILLAR : Purchase Of 20 foot Long Containers,Caterpillar 180 KVA Generator,..
04/27 Levi & Korsinsky, LLP Reminds Investors in Caterpillar, Inc. of a Class Actio..
04/27 CATERPILLAR INC. : Levi & Korsinsky, LLP Reminds Investors in Caterpillar, Inc. ..
04/27 MAY 2 DEADLINE ALERT : Law Offices of Howard G. Smith Reminds Caterpillar, Inc. ..
04/27 CATERPILLAR : Modification/Amendment - Robert C. Byrd Locks and Dam DB-50 Contro..
04/27 CATERPILLAR : Combine Solicitation - Robert C. Byrd Locks and Dam DB-50 Control ..
04/27 CATERPILLAR : raises outlook on first quarter profit
More news
Sector news : Heavy Machinery & Vehicles - NEC
04/27 KION : Forklift truck maker Kion disappoints with first quarter orders
04/25 Volvo profit jumps on cost cuts and strong truck demand
04/11 Siemens, Bombardier in talks about rail JV - sources
03/20 VW trucks division targets strong profitability gain in 2017
More sector news : Heavy Machinery & Vehicles - NEC
News from SeekingAlpha
04/27 My Dividend Growth Portfolio - Q1 2017 Summary
04/27 Titan Machinery Is Not The Short It Looks Like
04/27 DIVIDEND STREAKS IN DANGER : 2016 Review And 2017 Preview
04/27 Yes, Caterpillar's Post-Earnings Gains Make Some Sense
04/26 Caterpillar Flies But Why?
Financials ($)
Sales 2017 39 861 M
EBIT 2017 3 368 M
Net income 2017 1 576 M
Debt 2017 27 959 M
Yield 2017 3,00%
P/E ratio 2017 36,68
P/E ratio 2018 22,02
EV / Sales 2017 2,22x
EV / Sales 2018 2,12x
Capitalization 60 495 M
More Financials
Duration : Period :
Caterpillar Inc. Technical Analysis Chart | CAT | US1491231015 | 4-Traders
Full-screen chart
Technical analysis trends CATERPILLAR INC.
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 23
Average target price 101 $
Spread / Average Target -1,7%
Consensus details
EPS Revisions
More Estimates Revisions
Donald James Umpleby Chief Executive Officer & Director
David L. Calhoun Independent Chairman
Bradley M. Halverson Chief Financial Officer & Group President
Julie A. Lagacy Chief Information Officer & Vice President
William A. Osborn Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CATERPILLAR INC.10.72%60 495
DEERE & COMPANY7.90%35 387
KOMATSU LTD11.40%25 765
PACCAR INC3.93%23 327
KUBOTA CORP6.31%19 749
More Results