...April 29, 2019 New York (S&P Global Ratings) April 29, 2019--S&P Global Ratings today said that 3M Co.'s (##-/Stable/A-1+) announcement of weaker-than-expected first quarter earnings due to declining sales and margin pressure, as well as a significant litigation charge, reduces cushion in the current rating for further operating underperformance. For the quarter ended March 31, 2019, the industrial conglomerate announced a 5% decline in sales (on a reported basis) primarily due to end market softness in China, as well as in the automotive and electronics sectors. Furthermore, the company failed to cut costs in a timely fashion after experiencing lower volumes, which pressured operating margins, especially in the industrials segment. To combat the pressure on margins and weak sales, the company announced it would reduce 2,000 positions globally, resulting in a one-time restructuring charge of $150 million, with anticipated cost savings of approximately $100 million in 2019 and $225 million-$250...
