The Manufacturing giant 3M Company (NYSE:MMM) lowered its earnings and sales forecast for the second time in as many months on Tuesday, blaming sluggish growth in the world economy.
3M Company, which makes a wide variety of products ranging from Post-It Notes and Scotch tape to high-tech phone components, said it now expects sales growth unaffected by currency rates of 1% for 2015, down from a previous forecast of 1.5% to 2%.The company, a component of the Dow Jones Industrial Average, also projected full-year earnings per share of $7.55, down from a previously projected range of $7.60 to $7.65.
Disappointed investors drove 3M shares down 4% in pre-market trading to $151 and ended at $148.13 by 6.03%.In October, 3M said it would shed 1,500 jobs in the U.S., Latin America, Europe, the Middle East and Africa after revenue fell 5% in the third quarter.
3M has been gradually simplifying its operations, reducing the number of businesses from 40 to 26 since 2012. The company is also investing in new standardized global business software designed to save $500 million to $700 million annually by 2020.
Less than two months ago, 3M trimmed the top of its profit forecast and announced 1,500 job cuts in a global restructuring effort to fight slow growth and a strong dollar that weighed on international sales.
The continued difficulty highlights 3M’s dependence on international markets, which account for about two-thirds of sales. Chief Executive Officer Inge Thulin has emphasized organic growth overseas and new-product development since taking the helm in 2012. This year he reshaped 3M with deals that include its largest-ever acquisition.