DOW JONES NEWSWIRES
3M Co's (MMM) first-quarter net income dropped 47% on a decline
in demand, prompting the manufacturer to again cut its full-year
outlook.
Shares were down 0.7% at $53.80 in premarket trading as the
quarter's results missed analysts' expectations.
The manufacturer, whose products include Scotch tape, Post-It
notes, furnace filters and power lines, posted first-quarter net
income of $530 million, or 74 cents a share, down from $1.01
billion, or $1.38 a share, a year earlier. The latest results
included 7 cents in restructuring charges.
Revenue decreased 21% to $5.09 billion.
Analysts polled by Thomson Reuters expected earnings of 86 cents
on revenue of $5.22 billion.
3M now expects 2009 earnings of $3.90 to $4.30 a share on an
organic volume decrease of 11% to 15%. In January the company
reduced its earnings view to $4.30 to $4.70 on 5% to 9% volume
drop. Organic volume excludes the impact of acquisitions,
divestitures and currency fluctuations.
Chairman and Chief Executive George W. Buckley said the company
saw "substantial" declines in its markets as industries including
automotive, consumer electronics and general industrial
manufacturing continued to reduce inventories.
He added the company "aggressively" reduced costs in the first
quarter. No details were provided. The company earlier this month
offered early retirement packages to 3,600 nonunion employees, or
about 11% of its U.S. work force. That came after an announcement
late last month that it cut another 1,200 workers in the quarter,
mostly overseas.
Investors have been watching the company's health-care business
results to determine the degree to which the unit can hold up in
the slumping economy. The segment, which accounts for about 30% of
3M's operating profit, posted a 4.7% drop in earnings and a 7.7%
decrease in revenue because of the stronger dollar.
None of the company's six business segments reported increased
sales, with the display and graphics division again posting the
biggest drop - 30%.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com