3M sales decline by 5 percent
3M reported that its sales for the first quarter of $7.9 billion were down 5 percent compared to last year.
Organic local-currency sales declined 1.1 percent while divestitures, net of acquisitions, decreased sales by 0.5 percent. Foreign currency translation decreased sales by 3.4 percent year-on-year.
Net income of $891 million, or $1.51 per diluted share, compared to $602 million, or 98 cents, in the same quarter last year.
“The first quarter was a disappointing start to the year for 3M,” said Mike Roman, 3M chief executive officer. “We continued to face slowing conditions in key end markets which impacted both organic growth and margins, and our operational execution also fell short of the expectations we have for ourselves. As a result, we have stepped up additional actions – including restructuring – to drive productivityy, reduce costs, and increase cash flow as we manage through challenges in some of our end markets."
Reflecting a slower than expected 2019, 3M has initiated restructuring and other actions that will result in an expected reduction of 2,000 positions worldwide with an estimated annual pre-tax savings range of $225 million to $250 million, with $100 million in the remainder of 2019.
Industrial segment sales of $2.9 billion were down 6.6 percent. Sales increased in advanced materials; declined in industrial adhesives and tapes, automotive aftermarket, separation and purification, abrasives, closure and masking, and automotive and aerospace.
Safety & Graphics segment sales of $1.7 billion were down 4.2 percent. Sales increased in personal safety; declined in commercial solutions, transportation safety and roofing granules.
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