The US industrial group 3M announced today that in the first quarter of the year had a net profit of 893 million dollars, 47.3% more than the 606 million registered in the same period of 2018, a figure below the expected that for the moment, they caused its collapse in the stock market by 10%.
The multinational also announced that it will lay off 2,000 of its workers internationally because it is restructuring the company.
Quarterly earnings per share were $ 1.51, compared to the 98 cents per share it had in the same period last year. That is, an increase of 54%.
However, excluding extraordinary operations, the group had a net profit per share of $ 2.23, compared to the $ 2.50 achieved between January and March of last year and also below the $ 2.49 expected by analysts. .
On the other hand, revenues in the first quarter reached 7,863 million dollars, 5% less than the 8,278 million dollars recorded between January and March last year, and also below the 8,025 million that analysts calculated.
These data caused that after the sound of the bell on Wall Street, the company sank 10% on the New York Stock Exchange, waiting for how to close the session.
Parallel to the announcement of results, the company announced that it will lay off 2,000 of its workers internationally, to restructure its business into four operating units, instead of the current five.
According to 3M, this operation will mean a gross saving of between 225 and 250 million per year.
“As a result of a 2019 slower than expected, 3M has started a restructuring and other actions that will result in a reduction of 2,000 jobs worldwide with a pre-tax saving of between 225 and 250 million dollars, and that in 2019 will be reflected in 100 million “savings, said the company in the summary of its results.
3M CEO Mike Roman acknowledged that the results of the first quarter “represent a disappointing start to the year.”
“We continue to face decelerating conditions in key final markets that affected both organic growth and margins, and our operational execution also failed to meet the expectations we had for ourselves,” he said in a statement released by 3M.
The group, popularly known for its office materials, although its businesses extend to the automotive, electronic and food sectors, among others, is one of the thirty companies that make up the Dow Jones Industrial. (EFEUSA) .-