3M to cut 2,000 jobs, 1Q results miss Wall Street’s view
ST PAUL, Minn. (AP) — 3M plans to cut 2,000 globally as part of a restructuring due to a slower-than-expected 2019.
The maker of Post-it notes, industrial coatings and ceramics said Thursday that the move is expected to save about $225 million to $250 million a year. The St. Paul Minnesota-based company anticipates a pretax charge of about $150 million, or 20 cents per share, this year.
3M also lowered its full-year earnings guidance. The company now foresees its 2019 adjusted earnings in a range of $9.25 to $9.75 per share. Its prior outlook was for $10.45 to $10.90 per share.
3M Co. earned $891 million, or $1.51 per share, in the first quarter. Adjusted for one-time costs, earnings were $2.23 per share. That missed the $2.50 per share that analysts surveyed by Zacks Investment Research were looking for.
Revenue was $7.86 billion in the period, down 5% year over year and also falling short of Street forecasts. Three analysts surveyed by Zacks expected $8.09 billion.
Shares tumbled 9% before the market open.
There are three 3M plants located in southern Minnesota, including Fairmont, New Ulm, and Hutchinson.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MMM at https://www.zacks.com/ap/MMM
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