3M Co., which is wrapping up another quarter with a sales decline, cut 40 jobs in its engineering department this week and announced it will close a Massachusetts plant.
3M cuts jobs in Maplewood as sales continue to drop
The company is slashing engineering staff and closing a plant in Massachusetts as it prepares to release its second-quarter results.
By LIZ FEDOR, Star Tribune
June 27, 2009 at 4:25AM
Most of the engineering job losses are occurring at 3M's headquarters campus in Maplewood.
"This is related to the challenging economic environment," 3M spokeswoman Jacqueline Berry said Friday.
3M will release its second-quarter results July 23, and Wall Street analysts are forecasting that the company's revenue will fall 19.8 percent to $5.41 billion. Sales dropped more than 21 percent in the first quarter.
Analysts estimate 3M will earn 94 cents per share in the second quarter, which would be down 32 percent from a year earlier.
CEO George Buckley repeatedly has warned that the global recession would be particularly tough on 3M's sales over the first half of this year. He previously indicated that job reductions would continue through the second quarter that concludes next week.
In Southbridge, Mass., about 200 employees were notified this week that their plant, which makes hearing and eye protection products, will close. 3M, Minnesota's largest manufacturer, acquired that East Coast factory in late 2007 when it purchased Indianapolis-based Aearo Technologies. Berry said the work from that factory would be transferred to other 3M plants that make health and safety products.
"The manufacturing transition will begin immediately and be completed by early 2010," Berry said.
Other job reductions occurred earlier in the second quarter.
In the United States, about 700 employees accepted 3M's early retirement packages that were available through May 31. Berry said that additional jobs were eliminated at overseas locations during the current quarter, but she did not have a total figure available on Friday.
In April, 3M said that it expects 2009 sales, excluding those from acquisitions, will drop by 11 to 15 percent compared with last year.
3M's stock closed Friday at $59.26, up 36 cents. It traded as high as $74.71 last summer. The stock hit its 52-week low at $40.87 in March, but has been on a recovery path in recent weeks.
Liz Fedor • 612-673-7709
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LIZ FEDOR, Star Tribune
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