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3M Stock Falls on Profit Warning

June 16, 1998|Reuters

Minnesota Mining & Manufacturing Co., maker of Scotch tape and other products, said second-quarter and 1998 profit will be lower than expected, prompting a drop in its stock price. Chief Executive L.D. DeSimone said 3M plans to hold profit margins and boost sales while cutting costs through work force attrition, but has no plans for a major restructuring. Pinched by Asia's economic slump and modest U.S. growth, 3M said it expected earnings for the second quarter ending June 30 to be 90 cents to 94 cents per diluted share, well below the roughly $1.05 per share forecast by industry analysts, and below the year-ago level of 99 cents. 3M's largest non-U.S. business is in recession-plagued Japan. Shares of St. Paul, Minn.-based 3M fell $5.81 to close at $81 on the NYSE.

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