3m (TG:MMM)
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3M Co. (MMM) said Thursday it would cut capital spending by a third this year and halt its share repurchase scheme to conserve cash.

The decision by the U.S. conglomerate marks a sharp reversal of Chairman and Chief Executive George Buckley's stance that it wouldn't sacrifice spending on product development and innovation programs to preserve liquidity.

Buckley announced the buyback suspension on a call after reporting a 37% fall in fourth quarter earnings and cutting its 2009 guidance.

The company also said more employee layoffs are likely in 2009 and has temporarily furloughed more than 1,000 employees.

It is also deferring merit-pay raises and changing policies on accumulating vacation time, moves that 3M said will save $200 million over the next two years.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; robert.tita@dowjones.com

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