3M Co. is cutting about 2,500 global manufacturing jobs as demand for its products rapidly
softened toward the end of the year.
The maker of Scotch tape, Post-it Notes and more said Tuesday that sales for the fourth quarter
had fallen 6%, weighed down by currency fluctuations. The company said it expects sales to
continue to slide this year.
Organic sales, a metric that strips out currency effects, acquisitions and divestitures, grew slower
than the company had anticipated, Chief Executive Mike Roman said. He cited "rapid declines in
consumer-facing markets -- a dynamic that accelerated in December -- along with significant
slowing in China due to Covid-related disruptions." As demand softened, he said, the company
adjusted manufacturing levels.
"We expect macroeconomic challenges to persist in 2023," he said. 3M said it is likely to book a
pretax restructuring charge of $75 million to $100 million in the current quarter.
Shares slipped 3.5% to $118.28 in the premarket session.
For the full year, the company projects adjusted sales to fall between 6% and 2%, and sees
adjusted earnings falling to between $8.50 a share and $9.00 a share.