3M Drops Share Buybacks; Cuts Capex As 4Q Falls 37%
29 Gennaio 2009 - 4:08PM
Dow Jones News
3M Co. (MMM) said Thursday it would cut capital spending by a
third this year and halt its share repurchase scheme to conserve
cash.
The decision by the U.S. conglomerate marks a sharp reversal of
Chairman and Chief Executive George Buckley's stance that it
wouldn't sacrifice spending on product development and innovation
programs to preserve liquidity.
Buckley announced the buyback suspension on a call after
reporting a 37% fall in fourth quarter earnings and cutting its
2009 guidance.
The company also said more employee layoffs are likely in 2009
and has temporarily furloughed more than 1,000 employees.
It is also deferring merit-pay raises and changing policies on
accumulating vacation time, moves that 3M said will save $200
million over the next two years.
-By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com
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