3M (NYSE:MMM) fell Tuesday morning to touch a three-month low after the manufacturer said it expected sales to decline this year. Its stock was down 5.7% to $115.68 a share by 10:12 a.m. ET.
The maker of products including Post-It Notes and Scotch tape also announced plans to cut about 2,500 jobs worldwide on weaker demand and the negative effects of a stronger dollar on overseas sales.
“The slower-than-expected growth was due to rapid declines in consumer-facing markets – a dynamic that accelerated in December – along with significant slowing in China due to COVID-related disruptions,” Mike Roman, CEO of 3M (MMM), said in a statement. “As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels.”
3M (MMM) estimated that its adjusted sales in 2023 will fall by 2% to 6% while adjusted earnings decline to a range of $8.50 a share and $9.00 a share.
The company’s Q4 profit slumped 60% to $541 million, or 98 cents a share, from $1.34 billion, or $2.31 a share, a year earlier.
Organic sales — which don’t include the effects of currency moves, acquisitions and divestitures –grew 0.4% from a year earlier, missing 3M’s (MMM) expectation for a 1% to 3% gain, Roman said.
“We expect macroeconomic challenges to persist in 2023,” he said.
3M’s (MMM) sales declined 5.9% from a year earlier to $8.08 billion in Q4, beating the consensus estimate. The dollar’s stronger value compared with other currencies decreased revenue growth by 5%, according to the company.