3M shares post biggest 1-day drop in decades | TribLIVE.com
U.S./World

3M shares post biggest 1-day drop in decades

Associated Press
1073842_web1_1073842-11f04469d1154a9d9fc4feadcabb1190
In this Oct. 24, 2017, file photo, the logo for 3M appears on a screen above the trading floor of the New York Stock Exchange. 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.

ST PAUL, Minn. — Shares in 3M posted the biggest one-day drop in decades after the company reported first quarter results that fell short of Wall Street projections. The company also announced plans to cut 2,000 jobs worldwide as part of a restructuring due to a slower-than-expected 2019.

The maker of Post-it notes, industrial coatings, ceramics and other consumer products said Thursday the restructuring would reduce its number of operating units from five to four and 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.

Of the five current units, only the health care group saw an increase in sales, albeit a modest 0.3% uptick. The other four units — industrial, safety and graphics, electronics and energy, and consumer — saw sales declines ranging from 1.9% to 11.8%. The company said effective April 1 it had restructured to four units: safety and industrial, transportation and electronics, health care and consumer.

3M 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. Analysts surveyed by FactSet expect $10.40 per share, on average.

The company took a $548 million charge in the quarter, or 72 cents a share, to resolve current and future litigation. 3M set aside a reserve of $235 million for “certain environmental matters and litigation” and an additional $313 million to address current and expected coal mine dust lawsuits in Kentucky and West Virginia. Citi analyst Andrew Kaplowitz said in a client note that the litigation “may play a more prominent role in the 3M story for an extended period of time.”

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 of $8.09 billion. A year ago, 3M posted adjusted earnings per share of $2.50 on revenue of $8.28 billion.

In afternoon trading, the stock changed hands at $191.06, down 12.8 percent — its biggest one-day drop since 1988.

—————

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

Categories: Business | Wire stories
TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.