Canadian Manufacturing

3M profit dips; plans 1,500 job cuts in restructuring

The revenue drop was a result of a stronger U.S. dollar cutting into sales throughout all of the company's units

October 23, 2015  by The Associated Press

NEW YORK—3M Co. plans to cut up to 1,500 jobs as part of a restructuring plan as it reported declines in its overall third-quarter profit and revenue, saying a stronger U.S. dollar cut into sales.

The maker of Post-it notes, industrial coatings and ceramics said it is cutting jobs as part of a plan to “strengthen its competitiveness.” It said the move will involve cutting structural overhead in the U.S. and in slower growing markets.

3M reported a slight drop in net income to just under $1.3 billion even as a decline in shares outstanding for the latest quarter resulted in a boost in the earnings per share figure to $2.05.

Revenue, meanwhile, fell 5.2 per cent to $7.7 billion.

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The earnings per share results topped expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $2.01 per share.

Revenue fell short, with five analysts surveyed by Zacks expecting $7.9 billion. The revenue drop was a result of a stronger U.S. dollar cutting into sales throughout all of the St. Paul, Minnesota company’s units.

3M expects full-year earnings in the range of $7.73 to $7.78 per share.

3M shares have decreased roughly 9 per cent since the beginning of the year, while the Standard & Poor’s 500 index has declined nearly 2 per cent. The stock has increased slightly more than 6 per cent in the last 12 months.


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