Lockheed to split electronic systems business in two

WASHINGTON, Mon Oct 8, 2012 – The largest U.S. weapons maker, Lockheed Martin Corp., said it plans to split its electronic systems business into two separate operations focused on missiles and training, a move it said would save $50 million and eliminate 200 jobs.

The change, effective December 31, will give Lockheed five business areas: aeronautics, space systems, information systems, missiles and fire control, and mission systems and training.

Marillyn Hewson, who currently heads the electronic systems business, is scheduled to take over as president and chief operating officer of Lockheed on Jan. 1.

Chris Kubasik, who is set to succeed Bob Stevens as chief executive officer on January 1, said the restructuring would streamline Lockheed operations and strip out a layer of management at a time when the Pentagon is pushing contractors to lower overhead costs.

“This new structure will allow us to better support our customers around the world and positions our company for sustained long-term growth,” Kubasik said in a statement.

Lockheed said the new missiles and fire-control business will be based in Dallas, with 16,000 employees working on programs such as Patriot PAC-3 missiles and missile defense.

3M restructures divisions, announces executive changes

MINNEAPOLIS, Minn., Wed Oct 3, 2012 – 3M Co. said Wednesday it had restructured its operations into five major divisions, down from six, and set up new roles for some of its senior executives.

The company, which said Monday it was buying Ceradyne Inc. in its biggest deal since naming a new chief executive officer in February, will now comprise of consumer, industrial, health care, safety and graphics, and electronics and energy divisions.

The new structure is effective immediately, with segment reporting under the new organization effective Jan. 1, 2013.

“By building scale more broadly, we create critical mass in each business group to take full advantage of innovation and commercialization opportunities,” Inge Thulin, 3M’s chief executive, said in a statement.

The new safety and graphics division will be led by Executive Vice President Julie Bushman, former head of 3M’s safety, security and protection services business.

Executive Vice President Mike Kelly, former head of 3M’s display and graphics business, will lead the new electronics and energy group.

The industrial group will be headed by Executive Vice President Brad Sauer, former head of 3M’s health care business.

Kraft names leadership of new companies when it splits in 2013

NORTHFIELD, Ill. ― Kraft Foods Inc. named its chief executive, Irene Rosenfeld, to lead its snacks business and Kraft North America President Anthony Vernon to lead its North American grocery business when it splits in two next year.

The largest North American packaged food maker also said on Monday that John Cahill, currently a partner at Ripplewood Holdings, would join the company and become non-executive chairman of the North American grocery company.

Cahill is due to join Kraft in January as executive chairman, and serve in that role until the spin-off.

Before joining Ripplewood, a private equity firm, Cahill held senior finance positions at PepsiCo. Inc. and was involved in the 1999 spin-off of Pepsi Bottling Group. He later served as the bottler’s chairman and CEO.

Credit Suisse analyst Robert Moscow said the naming of Rosenfeld and Vernon was not surprising, and that the appointment of Cahill was “a huge positive,” given his reputation as a “top-tier executive” and his experience separating Pepsi Bottling from PepsiCo.

“Something as sensitive as this, where you’re splitting apart two companies, it’s a great idea to have someone who can focus so intensely on making that separation happen flawlessly,” Moscow said.

Kraft said Vernon would lead the grocery business as CEO, while Cahill, as chairman, would focus on “public company, financial and strategic matters.”

Some investors saw the appointment of Cahill, 54, as a sign that the grocery business, with brands like Oscar Mayer lunch meat and Kraft cheese, could eventually be in play given his private equity background, said Bernstein Research analyst Alexia Howard.

However, Howard wrote in a research note that she believed his appointment had “much more to do with his experience” in the separation of Pepsi Bottling from PepsiCo.

Kraft also said it still expects to complete the spin-off by the end of 2012.

Rosenfeld, 58, has been CEO of Kraft since 2006 and is credited with integrating Nabisco, leading Kraft through its spin-off from Altria Group Inc (MO.N) and acquiring Lu biscuits and Cadbury candy. She was widely expected to lead the snack business.Vernon, 55, joined Kraft in 2009.