3M stock on the brink of worst day since 1987 stock market crash

Shares at 3M Co. went down to the biggest day's downturn for over 30 years, after the industry, health and consumer products company reported lost earnings and revenue expectations, slashed its full-year outlook and said it was the management admitted that what made the first quarter results even worse was that the organization did not respond quickly enough to the weakness, especially in its industrial operations in Asia and the USA

The stock

MMM, -13.11%

fell 1[ads1]2.8% in afternoon trading, as the volume swelled to 11.6 million shares, compared to the full-day average of about 1.9 million shares. It was by far the largest decliner in the Dow Jones Industrial Average, with a price loss of $ 28.12, which seems like a 191-point draw on the Dow

DJIA, -0.37%

which was down just 80 points. The decline also accounted for USD 16.2 billion of the company's market value.

Percentage drop was second only to the 26% stop on October 19, 1987. It's the day referred to as Black Monday, with Dow registering its biggest-ever crash with 22.6% thumb.

Stocks selloff comes just two days after the stock had closed at one year's height of $ 219.50.

The company behind brands like Post-it, Scotch, Nexcare and Command reported the first-quarter earnings before Thursday's opening, showing a net income of $ 891 million, or $ 1.51 per share, from $ 602 million, or 98 cents per share, in the same period a year ago. With the exception of one-off items, such as process-related fees and the impact of the tax reform, adjusted EPS went to $ 2.23 from $ 2.50, missing the FactSet consensus of $ 2.49.

Dispute-related costs included the creation of $ 235 million in reserves to address environmental issues related to the production and disposal of waste containing PFASs (perfluorinated compounds) and a $ 313 million increase in respiratory reserves to address current and anticipated future dust processes. coal mine.

Apart from these costs, operating margins fell to 21.4% from 23.0% last year.

Sales fell 5% to $ 7.86 billion from $ 8.28 billion, under the FactSet consensus of $ 8.03 billion. Geographic fall sales surprisingly 0.4% organic in the US, fell 4% in China / Hong Kong and fell 7% in Japan, while increasing 1% in Latin America / Canada and EMEA (Europe, Middle East and Africa).

The following table describes how 3M's business segments are performed collectively:

Business segment Q1 2019 sales Sales (% change) Q1 2018] FactSet consensus Operating margin for the first quarter 2016 Q1 2018 margin operating Industry $ 2,929 billion $ 3,135 billion (-6.6%) $ 3,067 billion 20.0% 22.9%

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