Profits Up, Cuno Announces Layoffs
Jobs may be cut at Enfield, Stafford and Meriden plants
By Howard French
Journal Inquirer
12/15/08
Minnesota-based 3M Companies Inc., corporate parent of Connecticut’s Cuno Inc. operations, is in the middle of 1,800 layoffs — and even plant closings — around the country, although a company official declined to disclose how many jobs will be lost in Connecticut.
Company officials were to outline the restructuring plan at an investor and analyst meeting last week in New York, according to 3M spokeswoman Jacqueline Berry. But Berry said she had no immediate figures on how many, if any, of the job cuts will be in Cuno plants in Enfield, Stafford, and Meriden.
The 3M Companies laid off 63 of Cuno’s Connecticut workers in the first three months of this year. The Enfield plant lost 40 hourly and 8 salaried employees, while Cuno’s Meriden headquarters lost 15 workers. The company’s Stafford plant was not involved in the cuts. The work being done in Connecticut by the displaced workers, involving the manufacture of appliance filters, was moved to a plant in Mexico, closer to the factories producing the appliances, company officials said.
The 3M Company acquired Cuno for roughly $1.35 billion in 2005. The acquisition included Cuno plants in Enfield, where it employs about 150, and in Stafford, where it also employs roughly 150 workers.
Cuno products include filters for a variety of drinking water, healthcare, and other uses.
Core Business
In a company statement, 3M Chairman, President, and Chief Executive Officer George Buckley said that during the investor conference he intended to affirm 3M’s “commitment to its core businesses and to continued investments in emerging markets, such as China, India, the Middle East, and Latin America.”
He also said he would report on “aggressive cost-reduction actions in developed economies,” including the U.S.
“Clearly, the current market challenges require intense focus on cash management and on strengthening 3M’s operational execution,” Buckley said. “3M’s strong financial position, our continued investment in research and development, and our operational discipline will allow us to take advantage of market opportunities in this environment.”
Over the past three months, 3M has been identifying nearly 1,800 jobs to be cut across the company, “mainly in the developed economies of the U.S., Western Europe, and Japan,” Buckley said. The cutbacks are expected to save the company $170 million in 2009, he said, adding the company is also “rationalizing 10 manufacturing, technical, and office facilities around the world,” suggesting additional cost-cutting measures.
“We are prepared to implement additional restructuring as economic conditions dictate,” Buckley said.
Profits Up
The company adjusted downward its full-year 2008 guidance from an earlier estimate of $5.40 to $5.48 per share to a revised estimate of $5.10 to $5.15 per share, he said.
3M, which makes products ranging from Scotch tape to Post-its and optical films, in October reported third-quarter profits of $991 million, up 10 percent from $960 million a year earlier.
For the first nine months of 2008, net earnings were $4.19 per share, up 10.6 percent over 2007.
But despite the restructuring, 3M continued its acquisition spree in September, announcing an agreement to buy California-based Meguiar’s Inc., a family business that manufactures car care products.
It was the second time in a week that 3M announced a buyout, also announcing in September that it had acquired Ligacon AG, a Switzerland-based manufacturer and supplier of filtration systems and filter elements for the pharmaceutical, biotech, and general industrial markets.
Financial terms of the transactions were not disclosed. Meguiar’s is headquartered in Irvine, Calif., and employs around 115 workers.
When 3M announced its acquisition of Ligacon AG, 3M officials said that the Swiss company would become part of Connecticut-based 3M Cuno Filtration’s operation.
The company’s stock ended the trading day Wednesday at $57.52 per share. Over the past 52 weeks the stock has traded between $50.01 and $88.70 per share.
By Howard French
Journal Inquirer
12/15/08
Minnesota-based 3M Companies Inc., corporate parent of Connecticut’s Cuno Inc. operations, is in the middle of 1,800 layoffs — and even plant closings — around the country, although a company official declined to disclose how many jobs will be lost in Connecticut.
Company officials were to outline the restructuring plan at an investor and analyst meeting last week in New York, according to 3M spokeswoman Jacqueline Berry. But Berry said she had no immediate figures on how many, if any, of the job cuts will be in Cuno plants in Enfield, Stafford, and Meriden.
The 3M Companies laid off 63 of Cuno’s Connecticut workers in the first three months of this year. The Enfield plant lost 40 hourly and 8 salaried employees, while Cuno’s Meriden headquarters lost 15 workers. The company’s Stafford plant was not involved in the cuts. The work being done in Connecticut by the displaced workers, involving the manufacture of appliance filters, was moved to a plant in Mexico, closer to the factories producing the appliances, company officials said.
The 3M Company acquired Cuno for roughly $1.35 billion in 2005. The acquisition included Cuno plants in Enfield, where it employs about 150, and in Stafford, where it also employs roughly 150 workers.
Cuno products include filters for a variety of drinking water, healthcare, and other uses.
Core Business
In a company statement, 3M Chairman, President, and Chief Executive Officer George Buckley said that during the investor conference he intended to affirm 3M’s “commitment to its core businesses and to continued investments in emerging markets, such as China, India, the Middle East, and Latin America.”
He also said he would report on “aggressive cost-reduction actions in developed economies,” including the U.S.
“Clearly, the current market challenges require intense focus on cash management and on strengthening 3M’s operational execution,” Buckley said. “3M’s strong financial position, our continued investment in research and development, and our operational discipline will allow us to take advantage of market opportunities in this environment.”
Over the past three months, 3M has been identifying nearly 1,800 jobs to be cut across the company, “mainly in the developed economies of the U.S., Western Europe, and Japan,” Buckley said. The cutbacks are expected to save the company $170 million in 2009, he said, adding the company is also “rationalizing 10 manufacturing, technical, and office facilities around the world,” suggesting additional cost-cutting measures.
“We are prepared to implement additional restructuring as economic conditions dictate,” Buckley said.
Profits Up
The company adjusted downward its full-year 2008 guidance from an earlier estimate of $5.40 to $5.48 per share to a revised estimate of $5.10 to $5.15 per share, he said.
3M, which makes products ranging from Scotch tape to Post-its and optical films, in October reported third-quarter profits of $991 million, up 10 percent from $960 million a year earlier.
For the first nine months of 2008, net earnings were $4.19 per share, up 10.6 percent over 2007.
But despite the restructuring, 3M continued its acquisition spree in September, announcing an agreement to buy California-based Meguiar’s Inc., a family business that manufactures car care products.
It was the second time in a week that 3M announced a buyout, also announcing in September that it had acquired Ligacon AG, a Switzerland-based manufacturer and supplier of filtration systems and filter elements for the pharmaceutical, biotech, and general industrial markets.
Financial terms of the transactions were not disclosed. Meguiar’s is headquartered in Irvine, Calif., and employs around 115 workers.
When 3M announced its acquisition of Ligacon AG, 3M officials said that the Swiss company would become part of Connecticut-based 3M Cuno Filtration’s operation.
The company’s stock ended the trading day Wednesday at $57.52 per share. Over the past 52 weeks the stock has traded between $50.01 and $88.70 per share.
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