3M cutting thousands of jobs, profits tumble

Multinational conglomerate 3M will cut 2,500 global manufacturing roles after fourth-quarter profits plummeted due to a slowing economy.

Mike Roman, chairman and CEO of 3M, said in a release, “In a year impacted by inflation, global conflicts, and economic softening, our team took actions to position 3M for future success.”

But, he added, “We expect macroeconomic challenges to persist in 2023.”.

Ticker Security Last Change Change %
MMM 3M Co. 115.07 -7.56 -6.16%

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The company announced profits fell to $541 million compared to $1.3 billion over the same time in 2021. The earnings statement also showed sales for the quarter slipped 6%, operating cash flow went down 4%, and organic sales growth lost 0.4%.

Currently, 3M employs roughly 95,000 people in over 70 countries around the world and produces more than 60,000 products, including laminates, abrasives and paint protection films. (Reuters/Mario Anzuoni/Reuters Photos)

On the year, 3M’s operating cash flow dropped 25% to $5.6 billion, while adjusted free cash flow also dropped 25% to $4.7 billion.

The company reported the declines were “primarily due to lower net income and the cash impact from capitalization of R&D for US tax purposes.”

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Roman said, “The slower-than-expected growth was due to rapid declines in consumer-facing markets along with significant slowing in China due to COVID-related disruptions.”

“As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels,” he added.

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