Cost cuts fail to lift 3M profits

International sales have fallen sharper than US sales

3M, the diversified technology group that makes Post-It sticky note pads and Scotch tape, has reported a slight fall in earnings.

Net profits for the first three months of the year eased to $452m from $453m a year earlier.

The fall came despite a cost cutting exercise which had slashed 3M's expenses by 8%.

"They did a terrific job on costs and they did it without taking down research and development," said Morgan Stanley analyst Robert Ottenstein.

The company said its recent cost cutting efforts would continue.

"Although we are hopeful that the global economy will improve, our spending plans assume a continuation of the challenging economic backdrop for the remainder of the year," said chairman and chief executive James McNerney.

Sliding sales

3m, which formally changed its name from Minnesota Mining and Manufacturing on 4 April, recorded a 6.6% fall in global sales to $3.89bn from $4.16bn.

In its home market, sales dropped 5.1% to $1.78.

International sales fell 7.8% to $2.11bn.

3M is involved in a range of sectors, including health care equipment, safety goods and consumer electronics, as well as telecommunications, industrial goods and office equipment.