3M Withdraws FY20 Outlook; Q1 Results Top Estimates - Quick Facts

(RTTNews) - While reporting financial results for the first quarter on Tuesday, 3M Co. (MMM) withdrew its previously communicated full-year 2020 guidance on January 28, 2020, due to COVID-19 impact and end-market uncertainty.

The company said it is making aggressive cost reductions while minimizing employee impact, with estimated cost savings of $350 to $400 million in the second quarter of 2020. It is also prioritizing organic investments and the dividend, and suspended its share repurchase program.

Further, the company reduced full-year 2020 cap-ex plan to approximately $1.3 billion, compared to $1.6 to $1.8 billion, previously. It also continues to expect after-tax proceeds of $0.4 billion from closing of drug delivery divestiture in second quarter 2020.

The company said it will begin reporting monthly sales information starting in May to provide transparency on 3M's ongoing business performance.

For the first quarter, net income attributable to 3M increased to $1.29 billion or $2.22 per share from $0.89 billion or $1.54 per share in the prior-year quarter. Excluding special items, adjusted earnings were $2.16 per share.

Sales were up 2.7 percent year-on-year to $8.1 billion. Organic local-currency sales grew 0.3 percent.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $2.03 per share on net sales of $7.91 billion for the quarter. Analysts' estimates typically exclude special items.