3M Co. (MMM) Q1: strong quarter, in-line guidance, 6,000 new job cuts

3M Co. (NYSE: MMM) reported its financial results for Q1 2023 today, as well as announced several major operational updates.

For Q1, the company posted EPS of $1.97, $0.39 ahead of the analyst estimate of $1.58, with revenue also topping expectations at $8B vs estimate of $7.48B.

MMM provided FY 2023 guidance with EPS of $8.50-$9.00, versus the consensus of $8.60, and adjusted total sales growth of -6% to -2%, translating into adjusted organic sales growth of -3 percent to flat.

More notably, the company announced additional restructuring efforts: in a move "intended to make 3M stronger, leaner and more focused," MMM plans to cut 6,000 jobs across "all functions, businesses, and geographies," achieving anticipated annual pre-tax savings of $700M-$900M. The new round of layoffs follows a 2,500 manufacturing staff reduction enacted back in January 2023.

MMM sees total pre-tax charges of $700M-$900M from both current and January cuts, and expects to incur approximately half of those in 2023, and $175M-$250M in Q2.

The company's CEO and Chairman Mike Roman caommented: "To strengthen 3M for the future, today we announced actions that will reduce costs at the corporate center, further simplify and strengthen our supply chain structure, and streamline our go-to-market business models, which will improve margins and cash flow... We will continue to prioritize investments in high-growth end markets where 3M science gives us a clear competitive advantage."

Shares of MMM are gaining slightly following the report, currently up over 1.2% in pre-market trading on Tuesday.

By Vlad Schepkov

You May Also Be Interested In

• Micron surges 5.5% on blockbuster Anthropic AI deal ahead of earnings
• LAM vs. AMAT: Which chip should you own in 2026? Morgan Stanley answers
• Barclays expects Carnival to beat Q2 yield guidance despite fuel cost hit