DOW JONES NEWSWIRES 
 

3M Co's (MMM) first-quarter net income dropped 47% on a decline in demand, prompting the manufacturer to again cut its full-year outlook.

Shares were down 0.7% at $53.80 in premarket trading as the quarter's results missed analysts' expectations.

The manufacturer, whose products include Scotch tape, Post-It notes, furnace filters and power lines, posted first-quarter net income of $530 million, or 74 cents a share, down from $1.01 billion, or $1.38 a share, a year earlier. The latest results included 7 cents in restructuring charges.

Revenue decreased 21% to $5.09 billion.

Analysts polled by Thomson Reuters expected earnings of 86 cents on revenue of $5.22 billion.

3M now expects 2009 earnings of $3.90 to $4.30 a share on an organic volume decrease of 11% to 15%. In January the company reduced its earnings view to $4.30 to $4.70 on 5% to 9% volume drop. Organic volume excludes the impact of acquisitions, divestitures and currency fluctuations.

Chairman and Chief Executive George W. Buckley said the company saw "substantial" declines in its markets as industries including automotive, consumer electronics and general industrial manufacturing continued to reduce inventories.

He added the company "aggressively" reduced costs in the first quarter. No details were provided. The company earlier this month offered early retirement packages to 3,600 nonunion employees, or about 11% of its U.S. work force. That came after an announcement late last month that it cut another 1,200 workers in the quarter, mostly overseas.

Investors have been watching the company's health-care business results to determine the degree to which the unit can hold up in the slumping economy. The segment, which accounts for about 30% of 3M's operating profit, posted a 4.7% drop in earnings and a 7.7% decrease in revenue because of the stronger dollar.

None of the company's six business segments reported increased sales, with the display and graphics division again posting the biggest drop - 30%.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com