3M lowers full-year earnings forecast

AP News
Posted: Dec 15, 2015 9:40 AM

ST. PAUL, Minn. (AP) — 3M is lowering its full-year earnings forecast, citing continued slow growth of the global economy.

Its shares dropped almost 4 percent in premarket trading.

While the Federal Reserve is expected to boost interest rates Wednesday, inflation remains low due to global economic weakness, falling energy prices and a strong dollar.

The maker of Post-it notes, industrial coatings and ceramics said Tuesday that it now anticipates 2015 earnings of about $7.55 per share. Its prior guidance was for earnings in a range of $7.60 to $7.65 per share.

Analysts surveyed by FactSet predict full-year earnings of $7.66 per share.

Looking further ahead, 3M Co. foresees 2016 earnings between $8.10 and $8.45 per share. Wall Street is looking for earnings of $8.41 per share.

"We remain committed to executing our playbook, controlling the controllable, and making investments for long-term success," Chairman, President and CEO Inge Thulin said in a written statement.

3M said in October that it planned to cut up to 1,500 jobs as part of a restructuring plan. The St. Paul, Minnesota-based company said at the time that the job cuts were part of a plan to "strengthen its competitiveness." It said the move would involve cutting structural overhead in the U.S. and in slower growing markets.

Shares of 3M dropped $6.63, or 4.2 percent, to $151 in morning trading Tuesday. Its shares are down 8 percent so far this year.