3M Lowers 2015 Profit Outlook, Sending Shares Lower In Premarket Trade

3M Co. shares fell 1.7% in premarket trade Tuesday, after the manufacturer of post-it notes and a diverse range of industrial and business products cut its outlook for 2015 earnings. The company said it expects EPS of about $7.55 for the year, down from earlier guidance of $7.60 to $7.65. For 2016, the company expects EPS of $8.10 to $8.45. The FactSet consensus is for 2015 EPS of $7.66, followed by $8.41 in 2016. It expects organic local-currency sales growth of 1% to 3% in 2016. "We remain committed to executing our playbook, controlling the controllable, and making investments for long-term success," Chief Executive Inge Thulin said in a statement released ahead of an investor meeting. 3M is expecting to generate annual cost savings of $500 million to $700 million by 2020 through streamlining. The company will spend $1.8 billion on research & development in 2016, equal to about 5.8% of total sales. Shares are down 4% in the year so far, while the S&P 500 has lost 1.8%.