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https://i-invdn-com.investing.com/news/LYNXMPEA6606G_M.jpgOne of 3M Company (NYSE:MMM) biggest investors has questioned whether a change in the chief executive at the company is needed due to its concerns about current CEO Mike Roman’s leadership.
According to The Wall Street Journal, Bert Flossbach, the co-founder and senior portfolio manager of German mutual-fund firm Flossbach von Storch AG, said in a letter to Mr. Roman dated January 28 that revenue and earnings at 3M have been disappointing since Roman took over in 2018, pointing to a total shareholder return of -32% during that time.
3M, a Minnesota-based company, has been dealing with litigation regarding its military earplugs and the “forever chemicals,” otherwise known as PFAS. As a result of the litigation and other macro factors, 3M shares are down around 28% over the past 12 months. On Friday, it is down over 1%.
Flossbach also reportedly stated that he was mainly concerned with 3M’s operations versus the litigation.
A 3M spokesperson told the WSJ that the company is in regular discussions with its shareholders and always welcomes their feedback.
According to the WSJ, citing FactSet data, Flossbach von Storch AG is the eighth largest 3M shareholder, with 1.6% of shares outstanding, as of September 30, 2022.
Mr. Flossbach reportedly took aim at the 3 M’s 2023 prospects, stating the firm finds it “increasingly hard to take confidence in your still positive statements regarding the underlying health of 3M if at the same time you yourself seem to be continually surprised by the negative development of the business, evidenced by the fact that you once again had to revise the earnings forecast and initiate further restructuring measures.”
He also demanded 3M provide specific answers regarding details on how they will achieve a “distant better future.”