3M has adopted a more aggressive gaming book to mitigate the challenges of the first three months of 2019, CEO Michael Roman told CNBC on Monday.
"We were behind the curve to cut costs in Q1," he said in a personal interview with "Mad Money" Jim Cramer. "The action we are taking now is bringing us ahead of this turn. That's what we're doing. Get ahead of the curve."
The novel was responsible for challenges facing the manufacturing giant in China, as well as in the automotive and electronics industries, with weak first quarter results. About 30% of the company's revenue comes from these three segments, and management is "disappointed" by the loss and profit losses.
Organic sales decreased 1
The stock fell 13% after closing on Wednesday, before Thursday morning's earnings announcement. Cramer pointed out that over more than three decades, the stock price had been the worst slump.
3M took action to overcome headwinds in China, automobiles and electronics, but was not enough to make up for the declines. He said the declines accelerated in the months of February and March.
The company's forecast for 2019 has also been lowered to $ 9.25 to $ 9.75, to $ 10.90.
"Our execution led to weak productivity, as we called it, and so we act," said Roman.
The three markets are short-term challenges, but they are still a big part of 3M's long-term strategy, he said. Management is planning better execution to protect its market share while adding value to its broader portfolio.
The 3M model is still "strong" and the company will prioritize innovation and its best growth, Roman said. One of the defensive measures that leaders are taking to counter headwinds is tackling operating costs and reorienting production to meet demand in these markets.
"Our team knows how to react to the neighborhood and for the rest of the year," said Roman. "Part of the restructuring will take longer, which will take some time and will take more time towards the end of this year."
3M shares were down less than 1% on Monday at $ 190.21
WATCH: Cramer interviews 3M CEO Michael Roman
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