Earnings and Profitability - 3M's diluted earnings per share for Q1 2023 was $1.76, a decrease from $2.26 in the same period last year, primarily due to special items such as litigation costs and PFAS product impacts[271] - Total organic growth/productivity and other factors negatively impacted earnings per share by $0.38, driven by declines in disposable respirator demand and lower sales volumes in electronics/consumer retail[273] - Net income including noncontrolling interest for Q1 2023 was $981 million, down from $1,303 million in Q1 2022[336] - Net costs for significant litigation, including respirator mask/asbestos and PFAS-related matters, impacted earnings per share by $0.39 in Q1 2023[280] Sales Performance - 3M's total sales change for Q1 2023 was -9.0%, with organic sales declining by 4.9% and divestitures contributing to a 1.3% decrease[282] - Net sales for the first quarter of 2023 decreased by 9.0% to $8,031 million compared to $8,829 million in the same period last year[284] - Safety and Industrial segment sales decreased by 8.9% to $2,779 million, with organic sales declining by 6.0%[284][306] - Transportation and Electronics segment sales decreased by 12.4% to $2,050 million, with organic sales declining by 8.0%[284] - Health Care segment sales decreased by 5.6% to $2,010 million, despite a 1.4% increase in organic sales[284] - Consumer segment sales decreased by 9.0% to $1,192 million, with organic sales declining by 6.8%[284] - Sales in Safety and Industrial decreased by 8.9% in Q1 2023, with organic sales impacted by a 9.9 percentage point decline due to disposable respirator sales and Russia exit[308] - Transportation and Electronics sales decreased by 12.4% in Q1 2023, with organic sales down 8.0% and divestitures impacting sales by 1.0%[311] - Health Care sales decreased by 5.6% in Q1 2023, with organic sales up 1.4% but offset by divestitures and translation impacts[316] - Consumer Business sales decreased by 9.0% in Q1 2023, with organic sales down 6.8% due to shifts in consumer spending patterns[319] Geographic Sales Performance - Americas geographic area sales were flat, with U.S. organic sales increasing by 1% and Mexico organic sales increasing by 10%[286] - Asia Pacific geographic area sales decreased significantly, with China organic sales declining by 18% and Japan organic sales declining by 10%[286] Foreign Currency and Market Risks - Foreign currency impacts decreased operating income by approximately $76 million year-on-year in Q1 2023, primarily due to the strength of the U.S. dollar[275] - The stronger U.S. dollar negatively impacted sales and earnings in the first quarter of 2023, despite the company's hedging strategies[288] - The company is exposed to market risks including foreign currency exchange rates, interest rates, and commodity prices, which could impact financial performance[356] Restructuring and Divestitures - Restructuring pre-tax charges increased to $52 million in Q1 2023, compared to $18 million in the same period last year[274] - Divestiture impacts included lost income from divested businesses and stranded costs, with 3M completing the split-off of the Food Safety business and deconsolidation of the Aearo Entities in 2022[276] - 3M plans to exit manufactured PFAS products by the end of 2025, with related sales and income impacts being adjusted in non-GAAP measures[280] Tax and Financial Metrics - The effective tax rate for Q1 2023 was 17.7%, a decrease from 18.8% in the prior year, primarily due to deferred tax impacts of 2023 activity[277] - 3M's total debt at March 31, 2023, was $15.96 billion, consistent with December 31, 2022, with $1.1 billion in commercial paper outstanding[324] - Total debt was approximately $16.0 billion at March 31, 2023, with $1.1 billion in commercial paper outstanding[346] - Net debt decreased by $55 million to $11.97 billion at March 31, 2023, compared to December 31, 2022[331] Liquidity and Cash Flow - 3M had $4.0 billion in cash, cash equivalents, and marketable securities at March 31, 2023, with $2.7 billion held by foreign subsidiaries[330] - 3M maintains a strong liquidity profile with a $3.0 billion revolving credit facility and a $1.25 billion 364-day credit facility, both undrawn at March 31, 2023[327] - Net cash provided by operating activities increased by $264 million to $1,275 million in Q1 2023 compared to Q1 2022[340] - Free cash flow for Q1 2023 was $800 million, with a free cash flow conversion rate of 82%, up from 45% in Q1 2022[350] Capital Allocation and Investments - The company repurchased $29 million of its own stock in the first quarter of 2023, compared to $773 million in the same period last year[289] - The company repurchased $29 million of its own stock in Q1 2023 and declared a first-quarter dividend of $1.50 per share, marking the 65th consecutive year of dividend increases[347] - Capital spending for 2023 is expected to be between $1.5 billion and $1.8 billion, focusing on growth, productivity, and sustainability[341] - The company is actively considering additional acquisitions, investments, and strategic alliances, and may divest certain businesses[344] Working Capital and Financial Position - 3M's working capital decreased by $758 million to $4.41 billion at March 31, 2023, compared to December 31, 2022[329] - Working capital decreased by $0.8 billion compared to December 31, 2022, with current assets increasing by $0.3 billion and current liabilities decreasing by $1.0 billion[334] Forward-Looking Statements and Risks - Forward-looking statements highlight risks such as global economic conditions, COVID-19 impacts, PFAS liabilities, and potential disruptions in IT systems[354]

Summary of 3M Company Conference Call Company Overview - **Company**: 3M Company (NYSE:MMM) - **Event**: Bank of America Global Industrials Conference - **Date**: March 23, 2023 - **Participants**: Monish Patolawala (EVP & CFO), Michael Roman (Chairman & CEO), Bruce Jermeland (VP, IR) Key Points Industry and Economic Context - **2022 Performance**: Described as a pivotal year with significant actions taken to position the company for long-term success [3][4] - **Economic Uncertainty**: The company continues to face an uncertain economic environment, impacting revenue projections for Q1 2023 [5][6] - **Revenue Guidance**: Projected revenue for Q1 2023 is between $7.2 billion and $7.6 billion, reflecting a year-on-year decline of approximately 10% at the midpoint [6][7] Financial Performance and Projections - **Market Trends**: Notable softness in consumer electronics and destocking at retailers, while industrial activity remains strong but cautious [7][8] - **Full Year Guidance**: For 2023, the company anticipates a revenue decline of 3% to 0% [8][9] - **Cost Management**: The company has been prudent in spending and is restructuring to align manufacturing capacity with demand [9][10] Strategic Initiatives - **Spin-off of Health Care Business**: The spin-off is expected to create two world-class companies, enhancing margins and cash flow [4][10] - **Exit from PFAS Manufacturing**: 3M plans to exit PFAS manufacturing by 2025, with a projected charge of $1.3 billion to $2.3 billion [4][59] - **Litigation Management**: Ongoing litigation related to PFAS and Aearo bankruptcy proceedings are being actively managed [60][62] Market Dynamics - **China Market Outlook**: Anticipated recovery in the second half of 2023, with expectations of an 8% increase in China's Industrial Production Index (IPI) [16][17] - **Consumer Behavior Changes**: Shift from discretionary spending to essential goods and services due to inflationary pressures [26][27] Operational Efficiency - **Job Restructuring**: Announced restructuring of 2,500 manufacturing jobs to align with volume needs [9][10] - **Inventory Management**: Focus on reducing inventory levels and improving working capital efficiency [48][49] Pricing Strategy - **Inflation Impact**: Inflation remains sticky, with the company prepared to adjust prices as necessary to maintain margins [51][52] - **Pricing Dynamics**: Historically, 3M has maintained a positive price/cost differentiation of 30 to 50 basis points [54][55] Future Outlook - **Long-term Growth**: The company aims for long-term growth at or above macroeconomic rates, leveraging digital transformation and new market trends [64][65] - **Operational Leverage**: Targeting 3% to 4% operating leverage over time, with a focus on efficiency and yield improvements [42][46] Additional Insights - **Health Care Sector**: The Health Care business is positioned for growth, with trends indicating increased demand for health services and IT solutions [36][38] - **Legal Challenges**: The company is transparent about ongoing litigation and its potential financial impacts, with a focus on providing updates as they arise [62][64] This summary encapsulates the key discussions and insights from the conference call, highlighting 3M's strategic direction, financial performance, and market outlook.

3M Company (NYSE:MMM) J.P. Morgan 2023 Industrials Conference March 15, 2023 9:50 AM ET Company Participants Monish Patolawala - EVP, CFO & Transformation Officer Conference Call Participants Steve Tusa - J.P. Morgan Steve Tusa Hey, everyone. My name is Steve Tusa. I'm the Electrical Equipment And Multi-Industry Analyst here at J.P. Morgan. Welcome to day two of the J.P. Morgan Industrials Conference. We're very pleased to kick it off today with 3M and Monish Patolawala, who's the CFO at 3M. Monish has a fe ...

3M Company (NYSE:MMM) Citi 2023 Global Industrial Tech and Mobility Conference February 22, 2023 1:50 PM ET Company Participants Mike Roman - Chairman and CEO Monish Patolawala - EVP, CFO and Transformation Officer Conference Call Participants Andrew Kaplowitz - Citi Andrew Kaplowitz All right. Good afternoon, everyone, again. We'll let a few stragglers come in here, but we'll get started here. We're extremely excited to have 3M with us today. We've got Mike Roman, who is the Chairman and CEO; and Monish Pa ...

Workforce and Employment - 3M employed approximately 92,000 people as of December 31, 2022, with 37,000 in the United States and 55,000 internationally[35]. - 3M's total number of employees decreased from 95,000 in 2021 to 92,000 in 2022, reflecting the impact of acquisitions and divestitures[183]. - 3M's total compensation includes competitive market-based pay and comprehensive benefits for employees, supporting talent attraction and retention[39]. - The company emphasizes a culture of health and well-being through various employee assistance programs and comprehensive health care benefits[36]. - The company plans to invest $50 million from 2020 to 2025 to address racial opportunity gaps through workforce development initiatives[38]. - The company focuses on diversity, equity, and inclusion initiatives to enhance its workforce and innovation culture[38]. Financial Performance - For the year ended December 31, 2022, total company net sales were $34,229 million, a decrease of 3.2% compared to $35,355 million in 2021[132]. - The adjusted earnings per diluted share for 2022 was $10.10, reflecting a decrease of 6% from $10.73 in 2021[131]. - Operating income margin for 2022 was 19.1%, down from 20.8% in 2021, while diluted earnings per share increased to $10.18 from $10.12[110]. - 3M's total sales decreased by 3.2% in 2022, with organic sales growth of 1.0% compared to 7.3% in 2021[161]. - The effective tax rate for 2022 was 9.6%, a decrease of 8.2 percentage points from 2021, primarily due to a tax-efficient structure associated with the Food Safety business split-off[122]. - 3M incurred approximately $2.3 billion in pre-tax litigation costs in 2022, including $1.3 billion related to Combat Arms Earplugs litigation and $355 million for PFAS-related matters[106]. Business Segments and Operations - 3M's business segments include Safety and Industrial, Transportation and Electronics, Health Care, and Consumer, each focusing on specific market trends and opportunities[14]. - The Health Care segment reported operating income of $1,815 million in 2022, a decrease of 10.9% from $2,037 million in 2021[132]. - Operating income for the Safety and Industrial segment was $1,199 million in 2022, down 51.4% from $2,466 million in 2021[132]. - Transportation and Electronics segment sales fell by 3.9%, with organic sales growth of 1.2% impacted by semiconductor supply chain constraints[168][169]. - Health Care segment sales decreased by 2.0%, with organic sales down 0.9% due to COVID-related trends and inflationary pressures[174][178]. - Consumer sales decreased by 3.9% in 2022 compared to 2021, with organic sales growth in stationery and office and home care, while home improvement saw a decline[179]. Environmental and Regulatory Matters - The company is involved in remediation actions relating to environmental matters from past operations, with reserves for anticipated remediation costs recorded when they are probable and reasonably estimable[45]. - 3M faces liabilities related to certain fluorochemicals known as PFAS, which could adversely impact its results due to increasing regulations[62]. - The company has made necessary expenditures for compliance with applicable environmental laws and regulations, emphasizing environmental responsibility[44]. - Future costs of compliance with government regulations, including environmental regulations, may materially affect 3M's capital expenditures, earnings, or competitive position[46]. - 3M plans to exit all PFAS manufacturing by the end of 2025 and discontinue the use of PFAS across its product portfolio by the same date[65]. - The company has been voluntarily cooperating with various agencies in reviewing the environmental and health effects of certain PFAS produced by it[63]. Strategic Initiatives and Changes - 3M announced its intention to spin off the Health Care business as a separate public company in July 2022[14]. - The company completed the split-off of its Food Safety Division, resulting in a pre-tax gain of $2.7 billion[106]. - 3M plans to retain a 19.9% ownership position in the Health Care business after its planned spin-off[175]. - The company is undergoing a multi-year phased implementation of an ERP system to improve operational efficiency and productivity[81]. - 3M's operational execution and ability to integrate acquisitions and strategic alliances will significantly impact future results[78]. Market and Economic Conditions - Approximately 60 percent of 3M's revenues are derived from outside the United States, making the company susceptible to global economic and geopolitical risks[56]. - The global pandemic associated with COVID-19 has significantly increased economic and demand uncertainty, impacting 3M's operations and financial performance[59]. - 3M's operations are impacted by the global pandemic, affecting demand for products and causing supply chain disruptions[105]. - The company suspended operations of its subsidiaries in Russia in March 2022 and committed to a plan to exit related net assets through an intended sale of the subsidiaries[57]. Financial Management and Capital Allocation - Cash dividends declared and paid totaled $1.49 per share in 2022, compared to $1.48 per share in 2021[97]. - The company has authorized a repurchase program for up to $10 billion of its outstanding common stock, with no pre-established end date[98]. - 3M maintains a strong liquidity profile, with a commercial paper program allowing for a maximum of $5 billion outstanding, and no commercial paper was outstanding at the end of 2022[205]. - The company plans to continue returning cash to shareholders through dividends and share repurchases while investing in organic growth and capital expenditures[204]. - 3M expects to contribute approximately $100 million to $200 million to its global defined benefit pension and postretirement plans in 2023[141].

3M Company (NYSE:MMM) Q4 2022 Earnings Conference Call January 24, 2023 9:00 AM ET Company Participants Bruce Jermeland - Senior Vice President, Investor Relations Mike Roman - Chairman & Chief Executive Officer Monish Patolawala - Chief Financial & Transformation Officer Conference Call Participants Scott Davis - Melius Research Andrew Kaplowitz - Citi Andrew Obin - Bank of America Stephen Tusa - JPMorgan Securities Joe Ritchie - Goldman Sachs Julian Mitchell - Barclays Deane Dray - RBC Capital Markets Nig ...

2022 Fourth Quarter Earnings (unaudited) Mike Roman Monish Patolawala Bruce Jermeland Chairman of the Board & Executive Vice President, Senior Vice President, Chief Executive Officer Chief Financial & Investor Relations Transformation Officer Forward looking statement This presentation contains forward-looking information about 3M's financial results and estimates and business prospects that involve substantial risks and uncertainties. You can identify these statements by the use of words such as "anticipat ...

3M Company (NYSE:MMM) Q3 2022 Earnings Conference Call October 25, 2022 9:00 AM ET Company Participants Bruce Jermeland - Senior Vice President, Investor Relations Mike Roman - Chairman and CEO Monish Patolawala - Chief Financial and Transformation Officer Conference Call Participants Scott Davis - Melius Research Andrew Obin - Bank of America Joe Ritchie - Goldman Sachs Chris Snyder - UBS Andrew Kaplowitz - Citigroup Stephen Tusa - JPMorgan Securities Julian Mitchell - Barclays Nigel Coe - Wolfe Research D ...

3M Company (NYSE:MMM) Q2 2022 Earnings Conference Call July 26, 2022 9:00 AM ET Company Participants Bruce Jermeland - Senior Vice President, Investor Relations Mike Roman - Chairman & Chief Executive Officer Monish Patolawala - Chief Financial & Transformation Officer Kevin Rhodes - Executive Vice President & Chief Legal Affairs Officer Conference Call Participants Andrew Obin - Bank of America Scott Davis - Melius Research Andrew Kaplowitz - Citi Stephen Tusa - JPMorgan Securities Nigel Coe - Wolfe Resear ...