3M Q4 earnings fall short of expectations, announces job cuts
Manufacturing giant 3M posted quarterly earnings that fell short of expectations on Tuesday and announced that it will cut approximately 2,500 jobs.
3M reported a quarterly net income of $541.0m, or $0.98 per share, a sharp drop from the $1.34bn seen at the same time a year earlier. On an adjusted basis, 3M earned $2.28 a share, down from $2.45 a share a year before and short of consensus estimates for a print of $2.36 per share.
Sales fell to $8.08bn from $8.61bn, slightly ahead of the $8.05bn expected on the street, but a downbeat earnings outlook for the full year and the revelation of plans to cut 2,500 global manufacturing jobs due to persistent economic hurdles weighed on the stock.
"We expect macroeconomic challenges to persist in 2023," said chief executive Mike Roman, who said cuts were "a necessary decision to align with adjusted production volumes".
As of 1305 GMT, 3M shares were down 4.58% in pre-market trading at $117.0 each.
Reporting by Iain Gilbert at Sharecast.com