(Reuters) – American industrial giant 3M (MMM.N) forecasted earnings in 2020 below expectations after a lack of quarterly revenue estimates on Tuesday as weak demand from China led to overall growth.
3M's logo is seen at 3M Tilloy factory in Tilloy-Lez-Cambrai, France, August 18, 2019. REUTERS / Pascal Rossignol
The company's stock, which accounts for one-third of Asia's revenue, has fallen 4.2 percent and is the biggest drag on the Dow Jones industrial average. .DJI in morning trading.
Sales in the Asia-Pacific region, the largest market outside of the United States, fell for the fifth quarter, due to China's softness in the automotive and electronics sectors, one reason that forced 3M. have to cut jobs and production last year.
The company said it will cut 1,500 jobs by continuing to restructure businesses and reduce costs.
China, the world's second largest economy, grew at the slowest pace in nearly three decades of 2019 amid a trade war in factory production, while automobile sales plunged for the month. 18th in a row.
Michael's CEO, Michael Roman said, we looked at a slow start in China in the first quarter … based on cars, and construction rates are expected to drop. in the middle of the digits and maybe even a high calling digits.
But executives say the company is ramping up production of respiratory protective products to match the global needs arising from coronavirus outbreaks in China.
Asia-Pacific sales have decreased by 1.7%, …
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