3M (NYSE: MMM), St. Paul, Minnesota, reported sales for 2019 of $32.1 billion, a year-over-year decrease of 1.9%. Organic local-currency sales decreased 1.5%. Profit for the diversified manufacturer decreased 14.6% to $4.6 billion.
For the fourth quarter, sales rose 2.1% to $8.1 billion. Organic local-currency sales fell 2.6%. Profit decreased 28.1% to $969 million.
Total sales grew 25.4% in Health Care, were flat in Consumer, with declines of 4.8% in Safety and Industrial, and 6.2% in Transportation and Electronics. Organic local-currency sales increased 0.2% in Consumer, with declines of 0.2% in Health Care, 2.8% in Safety and Industrial, and 5.9% in Transportation and Electronics.
On a geographic basis, total sales grew 7.4% in the U.S., 1.2% in Latin America/Canada, with declines of 1.7% in Asia Pacific and 2.0% in EMEA (Europe, Middle East and Africa). Organic local-currency sales were flat in Latin America/Canada, with declines of 2.7% in both Asia Pacific and EMEA and 2.9% in the U.S.
3M has also announced the next step in its transformation journey, which includes a new global operating model and streamlined organizational structure.
As a result of these actions, 3M initiated a restructuring that will reduce approximately 1,500 positions, spanning all business groups, functions and geographies. On a pre-tax basis, 3M took a restructuring charge of $134 million in the fourth quarter of 2019. The company expects annual pre-tax savings of $110 million to $120 million, with $40 million to $50 million in 2020.
