NEW YORK (Reuters) - Diversified manufacturer 3M said on Monday it cut 1,800 jobs and lowered its 2008 outlook due to the global economic downturn, sending its shares down nearly 3 percent.
3M (MMM.NY) whose products include cell-phone circuits and Post-It notes, said in a statement it cut the jobs -- about 2.3 percent of its workforce -- in the fourth quarter, mainly in the United States, Western Europe and Japan. The cuts should yield benefits of $170 million in 2009, according to the statement.
It lower its 2008 outlook to $5.10 to $5.15, excluding items, from an earlier estimate of $5.40 to $5.48 per share.
The revised outlook disappoints expectations on Wall Street, which saw the company's 2008 earnings at $5.44 per share, according to Reuters Estimates.
3M's outlook for 2009, in the range of $4.50 to $4.95 per share, also excluding special items, misses analysts' view as well. Analysts were expecting 2009 earnings of $5.38 per share, according to Reuters Estimates.
"While a bit surprised with the magnitude of weakness in (the fourth quarter), it's not shocking," J.P. Morgan analyst Stephen Tusa wrote in a note to clients.
He said the shares will likely be down on this news, but that could create a buying opportunity. Tusa rates them as "overweight."
"For 4Q, it's clear that the global economy has pretty much shut down," Tusa said. "No one is immune to economic pressures. That being said, we continue to believe 3M holds up better than most, as sentiment remains negative, the franchise value here is high and the company has an excellent balance sheet."
3M's shares fell $1.61, or about 2.5 percent, to $58.43 in morning trading on the New York Stock Exchange.
The shares are about 31 percent lower year-to-date, outperforming the broader market as measured by the Standard & Poor's 500 index <.SPX>, which is down 38 percent.
(Reporting by Helen Chernikoff, editing by Dave Zimmerman and Maureen Bavdek)
