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3M will cut 2,500 employees (Reuters file photo)

[Financial Channel/Comprehensive Report] Affected by overseas market turmoil and weak consumer demand, 3M said it would lay off 2,500 employees worldwide.

In an interview, 3M CEO Mike Roman declined to specify where the layoffs would take place or whether the company would make further layoffs as it reviews its supply chain and prepares to spin off its health care division,media reported.

"We're looking at everything we do to address the challenges we face in our end markets, and we're focused on driving improvements."

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3M announced its financial report for the fourth quarter of last year. The profit in the fourth quarter was US$541 million, or 98 cents per share, compared with US$1.34 billion, or US$2.31 per share, in the same period of the previous year.

In the 4th quarter of last year, 3M's consumer goods sales fell by nearly 6%. 3M predicted that due to weak demand for consumer goods and electronic products, especially smartphones, tablets and TVs, which are supplied by 3M, this year's sales will drop from Last year's level slipped.

Mike Roman said on the conference call that consumers have slashed discretionary spending, retailers have adjusted inventory levels, and we expect the slowdown in demand trends we saw in December to continue into the first half of 2023.

3M said demand for its single-use masks is falling as healthcare providers spend less on Covid-19 measures and mask demand returns to pre-pandemic levels, with mask sales expected to rise this year from 2022 to 2022. The year started down $450 million to $550 million.

3M executives said the spread of Covid-19 infections in China was affecting sales there and sporadic factory closures were disrupting industrial production.

China is also reducing production of consumer electronics due to weak consumer demand, while 3M's exit from Russia last year will also lead to lower sales this year.

3M forecasts that sales for the quarter ended March 31 will decline by 10% to 15% from the same period last year; for the full year, sales are expected to decline by 2% to 6%, and adjusted earnings per share are expected to be $8.50 to $9 .

Excluding special charges, the company will earn $10.10 a share in 2022, and analysts polled by FactSet expect the company to earn $10.22 a share in 2023.

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