3M Co (MMM. N) said it would lay off 2,500 workers in manufacturing and forecast a bleak first quarter as the U.S. Industrial conglomerate grapples with slowing demand for consumer and electronic goods. The bleak outlook and quarterly results add to the company’s woes, coming as it faces separate lawsuits over defective earplugs and its use of “forever chemicals,” which 3M announced in December it plans to phase out.
3M shares fell 4.7% as it joined General Electric Co (GE.N) and Raytheon Technologies Corp (RTX. N) in warning of an inflationary hit in 2023. “MMM had recently lowered investor/Street expectations to some extent,” Citi analysts wrote in a note.
The company, which has been dealing with rising labor and energy costs, stated that it will continue to adjust its manufacturing levels and maintain spending discipline until volumes recover. According to Refinitiv data, 3M expects adjusted sales in the first quarter to be $7.2 billion to $7. 6 billion, down 10% to 15% year on year, falling short of analysts’ expectations of $8.34 billion.
“We anticipate that macroeconomic challenges will persist in 2023,” said CEO Mike Roman.
Sales fell 6% to $8.1 billion in the fourth quarter.