Despite the soaring global demand for their products (anti-virus masks are sold out worldwide), shares of 3M are slipping. The company will slash 1,500 jobs in a global restructuring program as its auto parts and electronics segments come under pressure amid slowing economic growth.
In a statement, the company said the restructuring program would span across “all business groups, functions, and geographies.” The company expects pretax savings of $110 to $120 million from the changes, according to a report by ZeroHedge.
The company reduced its profit forecast several times last year as the global synchronized slowdown showed limited signs of abating, along with continued deceleration in China and imploding automotive and electronics markets.
CEO Mike Roman said the restructuring would create a soft-landing for the company to capitalize on a rebound.
Roman said 3M would “continue to manage challenges in certain key end markets.” He added that today’s results were in line with the company’s expectations.
The coronavirus could be a massive boost for 3M Medical, as their masks are in high demand across the world. –ZeroHedge
China has been shutting down cities and factories across the industrial zones and that could spark a more pronounced slowdown for the global economy in the first quarter, ultimately weighing on aggregate future 3M earnings.
There are still some 3M masks available for purchase on Amazon, however, most of what is left are costly or for “particulates” such as dust and other debris. The following masks by 3M are still no sold out:
Maybe it’s only a matter of time before these are gone even at what seems to be higher prices. Of course, supply and demand have plenty to do with that.
This article contains affiliate links.