3M positioned its subsidiary that residences its army-grade earplug business into individual bankruptcy proceedings as it booked a $1.2 billion cost to take care of litigation more than alleged defects that are the subject matter of lawsuits from 1000’s of navy veterans.

The shift Tuesday came as the maker of Scotch tape, Article-It notes and extra described a drop in second-quarter profits and earnings. It lower its complete-12 months gross sales and earnings outlook as it grapples with a more robust greenback and an unsure financial atmosphere that impacts consumer spending patterns. The company also disclosed options to spin out its health care enterprise into a individual, publicly traded business.