Blames the stronger US dollar for cutting into sales.
October 23, 2015
by The Canadian Press
NEW YORK — 3M Co. plans to cut up to 1,500 jobs as part of a restructuring plan as it reported declines in its overall third-quarter profit and revenue, saying a stronger US dollar cut into sales.
The maker of Post-it notes, industrial coatings and ceramics said it is cutting jobs as part of a plan to “strengthen its competitiveness.” It said the move will involve cutting structural overhead in the US and in slower growing markets.
3M reported a slight drop in net income to just under $1.3 billion even as a decline in shares outstanding for the latest quarter resulted in a boost in the earnings per share figure to $2.05.
Revenue, meanwhile, fell 5.2% to $7.7 billion.
Revenue fell short, with five analysts surveyed by Zacks expecting $7.9 billion. The revenue drop was a result of a stronger US dollar cutting into sales throughout all of the St. Paul, Minnesota company’s units.
3M shares have decreased roughly 9% since the beginning of the year, while the Standard & Poor’s 500 index has declined nearly 2%. The stock has increased slightly more than 6% in the last 12 months.
© 2015 The Canadian Press