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Business & education services

3M shares fall on ‘slow growth’ warning

3M Co (NYSE:MMM) shares fell almost 6% after the company’s CEO warned that it was facing a "slow growth environment" in 2024 and pointed to weakness in its electronics and consumer business segments in the current and upcoming quarters.

"The consumer has shifted spending from discretionary to staples and other experimental activities," 3M chief financial officer Monish Patolawala said per a Reuters report.

The diversified manufacturer said it has seen a significant drop in demand in the U.S. across its electronics and consumer segments amid still-high inflation and elevated borrowing rates.

China has also been slower, Patolawala said. "We are continuing to see it slower in the third quarter," the CEO added.

3M shares traded down 5.8% at US$100.89 on Wednesday afternoon.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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