MMM 3M Company

By Amber Burton 

3M Co. said it would eliminate 1,500 jobs as part of a broad restructuring effort.

The maker of everything from Post-it Notes to molar crowns said Tuesday the cuts would be across its businesses and would save the company $110 million to $120 million a year, with $40 million to $50 million occurring in 2020. The company employs 96,000 people.

The reorganization places the oversight of international employees with their business groups, rather than having them report to an international operations division.

On Tuesday, the company said sales in the latest quarter rose to $8.11 billion from $7.95 billion a year earlier. Analysts had expected revenue of $8.11 billion in the quarter, according to FactSet.

The St. Paul, Minnesota-based manufacturing conglomerate reported a profit of $969 million, or $1.66 a share, compared with $1.35 billion, or $2.27 a share, a year ago.

Adjusted earnings were $1.95 a share. Analysts polled by FactSet were expecting adjusted earnings of $2.11 a share.

The company booked a $134 million restructuring charge in the fourth quarter related to the cuts.

For 2020, the company said it expects earnings between $9.30 and $9.75 a share. Analysts were expecting the company to earn $9.59 a share in 2020.

Health-care revenue grew by 25% in the quarter. Consumer products revenue rose by almost 1%.

Safety and industrial sales fell nearly 5% to $2.81 billion for the quarter and in its transportation and electronics business fell 6%.

Shares fell 2.35% in premarket trading.

(END) Dow Jones Newswires

January 28, 2020 07:36 ET (12:36 GMT)

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