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
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.
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.