3.3 C
London
Sunday, February 5, 2023
Home3M Tumbles After Huge Miss Despite Slashing Guidance Twice, Fires 2,500; Sees...
Array

3M Tumbles After Huge Miss Despite Slashing Guidance Twice, Fires 2,500; Sees “Significant” Decline In Electronics Demand

Date:

Related stories

Fake Meat Fail: Sales Collapse At Beyond Meat, Impossible Foods As 20% Of Staff Laid Off

Fake Meat Fail: Sales Collapse At Beyond Meat, Impossible Foods As 20% Of Staff Laid Off The fake meat industry appears to be in a death-spiral as sales at plant-based 'meat' companies Impossible Foods and Beyond Meat have imploded. As ...

Update To ‘Sims’ Video Game Features Teen Trans Characters With Chestbinders, Breast Removal Scars

Update To 'Sims' Video Game Features Teen Trans Characters With Chestbinders, Breast Removal Scars Authored by Steve Watson via Summit News, A new update to the popular “Sims” video game, where the player controls communities of simulated...

EU’s Nat Gas Cuts Likely To Spill Into Next Year

Europe is nearing the end of winter with record-high levels of natural gas in storage—news that has been appropriately celebrated in the media. Yet declarations that the crisis is over appear to have been premature. Because even with this record gas in...

A Return To ‘Head-Smacking Craziness’? Hedge Fund Billionaire Singer Warns ‘Bear Market Is Not Over Yet’

A Return To 'Head-Smacking Craziness'? Hedge Fund Billionaire Singer Warns 'Bear Market Is Not Over Yet' "Central bankers think they are the masters of the universe because the world is looking to them (and only them) to deliver continuou...

The Long-Term Negative Effects Of ESG Will Be Catastrophic

The Long-Term Negative Effects Of ESG Will Be Catastrophic Authored by Tom Czitron via The Epoch Times, Environmental, social, and governance (ESG) has been a hotly debated topic over the last few years. The seemingly unquestioned march t...
3M Tumbles After Huge Miss Despite Slashing Guidance Twice, Fires 2,500; Sees "Significant" Decline In Electronics Demand

Consumer manufacturing giant 3M reported disappointing earnings on Tuesday (Q4 Adj EPS 2.28, exp. 2.36), said it plans to cut about 2,500 manufacturing jobs citing persistent economic hurdles, and forecast profit for this year that fell short of Wall Street estimates (now sees Q1 revenue of $7.2-7.6BN, exp. $8.4BN) as its CFO warned he sees electronics demand down "significantly" in 2023.  The stock tumbled.

“We expect macroeconomic challenges to persist in 2023,” Chief Executive Officer Mike Roman said in a statement Tuesday.

The planned job cuts are “a necessary decision to align with adjusted production volumes,” he said.

The maker of assorted consumer goods such as Post-it notes, surgical supplies and touch-screen displays sees full-year adjusted earnings for 2023 in a range of $8.50 to $9.00 per share, excluding special items. That’s below the average analyst estimate. Worse, with the company missing on its adjusted operating margin for the Q4 period, it also warned that organic sales could fall as much as 3%: the industrial and consumer-goods conglomerate forecast Q1 EPS of $1.25-1.65, roughly 50% below the $2.56 consensus estimate.

What makes today's miss exceptionally bad is that the company had already twice cut its full-year 2022 sales and profit outlook, most recently in October, as a strong US dollar and shaky demand added to pressure from inflation and supply chain turmoil. It still wasn't enough.

3M had about 95,000 employees at the end of 2021, according to securities filings.

The ugly earnings report follows a rollercoaster year for the St. Paul, MN-based manufacturing giant and shows there’s more turbulence on the horizon. As Bloomberg notes, 3M has battled with softening demand in key segments as well as mounting risks tied to litigation over allegedly defective combat ear plugs. It also faces liabilities over contamination caused by so-called forever chemicals, which the company plans to stop producing by the end of 2025.

3M shares tumbled 6% to $115; it plunged as low as $102.58 during the still unexplained NYSE glitch.

3M Tumbles After Huge Miss Despite Slashing Guidance Twice, Fires 2,500; Sees “Significant” Decline In Electronics Demand

Tyler Durden Tue, 01/24/2023 - 11:03

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here