Anyone wants to predict how's the outcome? Anymore restructuring to be announced?
9 replies (most recent on top)
My entry in the betting pool:
- Top and bottom line small misses - will blame 'supply chain' issues.
- Dividend continues
- Share re-purchases "paused"
- Layoffs are taking longer than planned outside the US.
- Big one: Announce delay of HC spin off by 1-2 quarters
Let’s cut another 10,000 jobs. These are just people’s livelihoods, Why would 3M care?
Many plants FMR under radar.. many closures affecting employees. Guess more to come as factories under utilisation gets worsen. Even superhubs are not spared with shutdown 1 week per month.
The Q2 call will be good because they did a bunch of foolish short term stuff in Q1 to make Q2 look good. I don't agree with the foolish things but the executives need their bonuses and they'll floating down in their golden parachute before the negative consequences show up. I think 1.5-2.5k more layoffs, focused in the divisions this time. (Look at all the 'great work' PG did in EO).
They will say headwinds, challenges, playbook, execute, enterprise, opportunities, and exciting. There will be no dividend reductions at this time. The Street will view layoffs as favorable and there will be a slight rise in stock price. Yahoo finance puts stock around $103. If you can get out around that price it might be as good as it gets for a while.
How are they going to announce additional restructuring when they haven't even completed the 6000 from Q2?
As far as I know EMEA layoffs still ongoing and GCA/JP has not even started due to local labor regulations. If they announce any new restructuring I would guess it would be later in Q4 or even Q1'24.
The only reason stock prices holding is because of dividends. Cutting dividends would be one of the worst decisions they can make, but hey never know with M&M! Reverse logic amirite?
Any announcements?
I guess q2 3M would meet bottom due to restructuring but miss top line. 3M still đi more in portfolio management as Roman and Monish playbook to save cash, esp for litigation. They may cut or reduce dividends which will drive stock down. I think the restructuring would be in BG and lab for this turn as they hit in EO in April and May.
Many companies will not have good Q2 earnings. Recession is headed our way. Just look at the 2yr vs 10yr Yield curve. It has been inverted for over a year now. This happens every time a recession is about occur. Start saving your money. It's going to be a pretty long recession with inflation still above 2% (Fed's goal). Life is about to get tough.
https://realeconomy.wpenginepowered.com/wp-content/uploads/2022/03/3_29_2022_yield_1_sub.png