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3M operating profit slumps
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October 22, 1998: 9:25 a.m. ET
Post-it maker cites global turmoil, currency fluctuations for 9.3% drop
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NEW YORK (CNNfn) - Minnesota Mining & Manufacturing Co.'s profits from operations fell 9.3 percent in the third quarter, hurt by global economic turmoil and wild currency swings, the multinational corporation said Thursday.
The St. Paul, Minn.-based company, which makes Scotch Tape and Post-it Notes, reported income excluding one-time charges totaled $392 million, or 97 cents a share, a penny short of expectations.
Shares of 3M (MMM) closed 2-1/4 lower at 84-1/4 in Wednesday trading.
The latest quarter included a $332 million charge for asset writedowns and severance for its previously announced plans to eliminate 1,500 jobs by year-end.
Accounting for the one-time item, net income totaled $178 million, or 44 cents a share, compared with $927 million, or $2.21 a share, a year earlier.
3M added that changes in currency exchange rates reduced earnings for the quarter by 8 cents a share, or about 8 percent.
Net sales were essentially flat at $3.77 billion, compared with $3.83 billion last year.
However, 3M said it expects higher fourth-quarter earnings and sales compared with the 1997 fourth quarter, when the company recorded net income of $366 million, or 90 cents a share, on sales of $3.71 billion.
"While we are facing a challenging economic environment, we expect to see increasing benefits from our cost-reduction efforts," L.D. DeSimone, 3M chairman and chief executive, said.
For the first nine months, net income including the restructuring charge totaled $964 million, or $2.36 a share, on revenue of $11.2 billion. 
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3M
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