Industrials
3M to Slash 1,500 Jobs After Top Line Misses Estimates
Published:
Last Updated:
3M Co. (NYSE: MMM) reported third-quarter 2015 results before markets opened Thursday. The conglomerate posted diluted earnings per share (EPS) of $2.05 on revenues of $7.71 billion. In the same period a year ago, the company reported EPS of $1.98 on revenues of $8.14 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $2.00 and $7.85 billion in revenues.
Organic local-currency sales grew 1.2% and foreign currency translation reduced sales by 7.4% year on year.
3M also announced a restructuring plan that will result in an expected reduction of 1,500 positions worldwide and estimated pretax savings of $130 million in 2016. The company anticipates a fourth-quarter pretax charge of approximately $100 million, or $0.13 per share, related to this plan. Reductions will be primarily focused on structural overhead, largely in the United States, and slower-growing markets, with particular emphasis on EMEA and Latin America.
3M lowered its full-year adjusted earnings expectation from a prior range of $7.80 to $8.10 per share to a new range of $7.73 to $7.78. Organic local-currency sales growth is expected to be in the range of 1.5% to 2.0%, versus previous guidance of 2.5% to 4.0%. The company anticipates that full-year free cash flow conversion will be in the range of 95% to 100%, versus a previous estimated range of 90% to 100%. The current consensus analysts’ estimate calls for full-year EPS of $7.77 on sales of $30.78 billion.
ALSO READ: The Most Profitable Companies in the World
CEO Inge G. Thulin said:
We continue to take actions to strengthen our portfolio, increase our scientific edge through research and development, and transform our business processes through a new global ERP system. We are building a stronger, more streamlined and more focused company that can compete and win for years to come.
3M’s shares traded up about 3.7% late Thursday morning to $155.35. The current 52-week range is $134.00 to $170.50. Thomson Reuters had a consensus analyst price target of $156.50 before the report.
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.