U.S. manufacturing conglomerate 3M said Thursday it will lay off 2,000 workers globally and reported a lower-than-expected quarterly profit. It also cut its 2019 earnings forecast due to worsening performance in key markets.
The job cuts, part of moves to restructure its businesses into four operating units from five, would result in an estimated annual pretax savings range of $225 million to $250 million, with $100 million in the remainder of 2019, the company said.
Shares of 3M tumbled more than 8% in premarket trading following the announcement.
Here are the numbers 3M reported:
- Earnings per share: $2.23, adjusted vs. $2.49 expected in a Refinitiv survey of analysts
- Revenue: $7.863 billion vs. $8.025 billion expected in the survey
The first-quarter results were hurt by a litigation-related pretax charge of $548 million, or 72 cents per share.
The company, whose diverse products include adhesive tapes and air filters, said it now expects 2019 adjusted earnings between $9.25 and $9.75 a share, down from its prior forecast of $10.45 to $10.90 per share.
“The first quarter was a disappointing start to the year for 3M,” CEO Mike Roman said in a statement. “We continued to face slowing conditions in key end markets which impacted both organic growth and margins, and our operational execution also fell short of the expectations we have for ourselves.”
—Reuters contributed to this report.
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