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3M CEO Says 'No Clear View Of Where Where We Are Going' During Coronavirus Pandemic

3M CEO Says 'No Clear View Of Where Where We Are Going' During Coronavirus Pandemic

3M Co (NYSE: MMM) made the decision to suspend its guidance and slash its capital expenditures due to the fast-changing dynamics of the COVID-19 crisis, CEO Mike Roman said on CNBC's "Squawk on the Street."

'No Clear View' For 3M Investors 

Simply put, there is no "clear view of where we are going," but 3M will offer investors a monthly update on organic growth instead of formal guidance, Roman said following the company's Tuesday earnings release.

The company did note that April trends are so far "down mid-teens," which warrants an approach of managing costs where necessary, the CEO said. 

3M continues to invest money in key areas like respiratory equipment that are growing and seeing high demand, he said.

Why It's Important For 3M

3M is also seeing high demand in areas like home improvement, cleaning and biopharma, among others, Roman said.

This "COVID-related" demand upswing is offset by the decline in demand within business units that service the auto or office industries, the CEO said. 

Some areas within health care are also declining, as many people are putting on hold elective surgeries, and others are unable to visit their dentists, he said.

As economies around the world start to show signs of a rebound, these areas in particular should see an uptick in demand, he said. 

What's Next For 3M 

3M did say in its earnings report that it will continue supporting its dividend policy moving forward.

"3M's explicit prioritization of its dividend should also alleviate any concerns over a dividend cut," CNBC quoted RBC analyst Deane Dray as saying in a note. "As a result, we expect 3M shares to modestly outperform peers by roughly low-single-digits on Apr-28."

The stock ended Tuesday's session higher by 2.58% at $157.61. 

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