Industrials

3M profit slides 39%, reiterates 2019 profit outlook

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3M beats on top and bottom lines

Diversified manufacturer 3M reported a 39% drop in quarterly profit on Thursday, but reiterated its full-year earnings forecast as it fought the impact of slowing global growth, sending its shares up 4% before the opening bell.

3M in April decided to cut 2,000 jobs as weak demand in the China's automotive and electronics sectors led the company to cut production to better align its output with demand.

"Our execution was strong in the face of continued slow growth conditions in key end markets, as we effectively managed costs and improved cash flow," Chief Executive Officer Mike Roman said.

The company's sales fell key markets including Asia Pacific but expanded 2% in the United States.

Net income attributable to 3M fell to $1.13 billion, or $1.92 per share, in the second quarter ended June 30, from $1.86 billion, or $3.07 per share, a year earlier.

The maker of Post-it notes and Scotch tape earned $2.20 on an adjusted basis.

Net sales fell 2.6% to $8.2 billion.