3M Announces Restructuring Actions, To Impact Approx. 6,000 Positions

(RTTNews) - 3M (MMM) said the company is taking restructuring actions that are expected to affect all functions, businesses, and geographies and will impact approximately 6,000 positions globally. 3M anticipates annual pre-tax savings of $700 million to $900 million upon completion of these actions.

"We announced actions that will reduce costs at the corporate center, further simplify and strengthen our supply chain structure, and streamline our go-to-market business models, which will improve margins and cash flow," said 3M CEO Mike Roman.

3M said it will prioritize emerging growth areas such as climate technology, sustainable packaging, industrial automation, semiconductors, and next-generation consumer electronics. The company also announced that, Michael Vale has been appointed to Group President and Chief Business and Country Officer, a new role on the Corporate Operations Committee. Vale was previously Group President, Safety & Industrial Business and has 30 years of experience at 3M.

First quarter adjusted EPS declined to $1.97 from $2.63, prior year. Analysts on average had expected the company to earn $1.58 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items. GAAP EPS was $1.76 compared to $2.26.

Sales were $8.0 billion, down 9.0 percent year-on-year, with organic sales decline of 4.9 percent year-on-year. Adjusted sales were $7.7 billion, down 9.7 percent year-on-year with adjusted organic sales decline of 5.6 percent year-on-year. Analysts on average had estimated $7.49 billion in revenue. 3M affirmed its full-year expectations for 2023.

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