3M Beats Profit Expectations, But Cuts Outlook And 1,500 Jobs

3M Co. reported on Thursday a third-quarter profit that beat expectations, but sales that missed expectations and said it would cut 1,500 jobs as part of a cost-cutting plan. Earnings for the quarter ended Sept. 30 came in at $1.3 billion, or $2.05 a share, compared with $1.3 billion, or $1.98 a share, in the same period a year ago, and above the FactSet earnings-per-share consensus of $2.02. Revenue fell 5.2% to $7.71 billion, missing the FactSet consensus of $7.84 billion, as unfavorable currency movements reduced sales by 7.4%. The maker of adhesives, abrasives and coatings lowered its full-year 2015 adjusted EPS outlook to a range of $7.73 to $7.78 from $7.73 to $7.93. 3M said it would cut 1,500 jobs as part of a restructuring plan aimed at cutting costs by $130 million in 2016. 3M has about 89,800 employees worldwide, according to FactSet. The cuts will focus on overhead, and be largely in the U.S. "We are building a stronger, more streamlined and more focused company that can compete and win for years to come," said Chief Executive Inge Thulin. The stock, which was still inactive in premarket trade, has lost 8.8% year to date, while the Dow Jones Industrial Average has slipped 3.7%.

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