3M misses on profits, plans to cut 1,500 jobs

Shares in consumer and industrial products manufacturer 3M were under pressure ahead of the bell on Tuesday after the group fell short of fourth-quarter profit expectations and announced it would be cutting as many as 1,500 jobs as part of a restructuring programme.

The Scotch tape and Post-it note maker said net income fell to $969m, or $1.66 per share, from $1.35bn in the same period a year earlier.

Excluding non-recurring items, adjusted earnings per share fell to $1.95 from $2.31, below consensus for $2.11.

3M said sales rose 2.1% to $8.11bn, on par with expectations on the Street.

The St Paul-based company said it would be implementing a restructuring programme aimed at annual savings of $110m-120m - with job cuts, which make up roughly 1.6% of the group's global workforce, being made across all of its business groups and geographies. The restructuring brought about a $134m charge in the fourth quarter.

Looking forward, 3M expects full-year earnings per share of $9.30-9.75, right in the middle of consensus estimates of $9.59 per share.

As of 1315 GMT, 3M shares were down 2.49% in pre-market trade at $171.25 each.