Core Insights - 3M reported better-than-expected third-quarter earnings, with earnings from continuing operations at $1.98 per share and revenue rising 0.4% to $6.29 billion, both exceeding estimates [1][2] - However, sales declined in two of its three divisions, specifically in the Transportation and Electronics and Consumer segments, due to decreased global demand for vehicles and reduced consumer spending [1][2] Revenue Breakdown - Sales in the Transportation and Electronics unit fell 1.5% to $2.14 billion, primarily impacted by a decline in automobile demand, particularly in Europe [2] - The Consumer segment experienced a 1.2% drop in sales to $1.3 billion, attributed to softness in discretionary consumer spending [2] - Conversely, the Safety and Industrial division saw a 0.5% increase in sales to $2.77 billion, driven by higher demand for industrial adhesives and tapes [2] Future Outlook - The company revised its full-year earnings per share (EPS) guidance to a range of $7.20 to $7.30, up from the previous estimate of $7 to $7.30 [2] - 3M anticipates revenue growth of approximately 1%, an improvement from the earlier forecast of a decline of 0.25% to an increase of 1.75% [2] Stock Performance - Despite a 1% drop in share price to $132.76 on the reporting day, 3M shares have increased by about 46% year-to-date in 2024 [2]

Core Insights - Historically, dividend cutters are the worst-performing stocks, with a $100 investment in 1973 turning into $73, while dividend growers turned the same investment into over $14,000 [1] Group 1 - Dividend cutters have significantly underperformed the market over the long term [1] - Companies that consistently grow dividends have provided substantial returns to investors [1]

Bill Brown 2024 Third Quarter Earnings (unaudited) Anurag Maheshwari Bruce Jermeland Chief Executive Officer Executive Vice President and Chief Financial Officer Senior Vice President, Investor Relations 2 Forward-looking statements This presentation contains forward-looking statements. You can identify these statements by the use of words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "will," "should," "could," "would," "forecast" and other words and te ...

Financial Data and Key Metrics - Non-GAAP earnings per share for Q3 2024 were $1.98, up 18% YoY, driven by 1% organic revenue growth [4] - Company-wide margins increased by 140 basis points to 23%, with free cash flow of $1.5 billion and a conversion rate of 141% [4] - $1.1 billion was returned to shareholders via dividends and share repurchases during the quarter [4] - Full-year earnings guidance was raised, with the lower end increased by $0.20 to a range of $7.20 to $7.30 per share [4] Business Segment Performance - Safety and Industrial sales were $2.8 billion, with 0.9% organic growth, driven by industrial adhesives and tapes, particularly in electronic devices [14] - Transportation and Electronics sales were $1.9 billion, up 2% organically, with high single-digit growth in electronics due to holiday season production ramp-ups [14] - Consumer business sales were $1.3 billion, with a 0.7% organic decline, impacted by portfolio prioritization and retail price sensitivity [16] Market Performance - Asia-Pacific led organic growth with mid-single-digit increases, driven by strong performance in the electronics business [13] - The U.S. market was flat, with strength in home improvement and commercial branding offset by declines in personal safety [13] - EMEA saw low single-digit declines due to reduced global car and light truck builds [13] Strategic Direction and Industry Competition - The company is focusing on driving organic growth through innovation, operational improvements, and capital deployment [5] - R&D efficiency is being enhanced, with a focus on reducing product development timelines and increasing pipeline velocity [6] - New product launches are expected to increase by 10% this year, with further acceleration in 2025 [7] Management Commentary on Operating Environment and Future Outlook - Management highlighted progress in on-time in-full (OTIF) delivery, which improved to 89% in Q3, up 5 points since the beginning of the year [8] - The company is working on improving demand visibility and forecast accuracy, which has been below industry standards [10] - A company-wide safety campaign, "Journey to Zero," was launched to reduce workplace injuries [11] Other Important Information - The company is actively reviewing its portfolio, with a few small businesses in the early stages of a sale process [12] - Adjusted free cash flow for the first nine months of 2024 was $3.5 billion, with $2.7 billion returned to shareholders [12] Q&A Session Summary Question: Operational Transformation and Supply Chain Opportunities - The company is focusing on driving 2% net productivity across its supply chain, with significant opportunities in value engineering and supplier performance improvements [21][22] - Management is working on refining incentive structures and compensation plans to align with operational goals [23] Question: Centralization and Insurance Recoveries - The company has centralized its supply chain operations, which has improved performance metrics and coordination across factories and distribution centers [26] - Insurance recoveries related to PFAS and combat arms totaled $54 million in Q3, with year-to-date recoveries exceeding $175 million [28] Question: Productivity Initiatives and Restructuring - The company is targeting 2% net productivity, with a focus on supply chain, lean operations, and reducing waste [31][32] - Restructuring efforts are on track, with $165 million spent in the first half of 2024 and $110 million expected in the second half [35] Question: Capital Deployment and Balance Sheet Strength - The company has a strong balance sheet, with $7.3 billion in cash and a net leverage ratio of 0.8x, providing flexibility for capital deployment [38] - Share repurchases totaled $1.1 billion year-to-date, with capacity for further buybacks [37] Question: Gross Margin and R&D Efficiency - The company aims to improve gross margins to the high-40s, driven by productivity initiatives and operational improvements [41] - R&D spending is expected to remain around 4.3-4.4% of sales, with a focus on new product development and cost reduction [42] Question: Consumer Business and Pricing Strategy - The consumer business is expected to improve in Q4, with positive organic growth driven by new product introductions in home improvement [53] - Pricing strategies are being refined to cover material cost inflation, with a focus on surgical pricing and volume rebates [49] Question: Portfolio Rationalization and New Product Launches - Portfolio rationalization efforts are expected to decline in 2025, with a focus on strategic exits and inorganic divestitures [57] - New product launches are expected to accelerate in 2025, with a focus on safety and industrial, and transportation and electronics segments [58] Question: Operating Equipment Efficiency and Electronics Demand - Operating equipment efficiency (OEE) is being improved, with current utilization at 50%, well below best-in-class levels of 80% [60] - Electronics demand remains strong, with high single-digit growth driven by advanced materials and semiconductor markets [63] Question: Forecasting and Demand Planning - The company is redesigning its forecasting process to improve accuracy and reduce inventory levels, with initial focus on two large divisions [65] - Improved forecasting is expected to enhance delivery performance and reduce costs across the supply chain [67] Question: Growth Outlook and Portfolio Pruning - The company aims to grow above GDP levels, driven by innovation and operational improvements, with significant progress expected by 2025 [69] - Portfolio pruning will focus on strategic exits, with a focus on maximizing value and minimizing dilution [73] Question: Workplace Culture and New Product Vitality Index - The company is encouraging employees to return to the office to enhance collaboration and innovation, while maintaining flexibility [75] - The New Product Vitality Index (NPVI) is being monitored, with a goal of increasing new product introductions to improve portfolio freshness [76]

3M Company (MMM) reported third-quarter 2024 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate. Both the bottom and top lines increased on a year-over-year basis.It’s worth noting that in April 2024, the company completed the spin-off of its Healthcare business into a separate public company.Inside the Headlines3M delivered adjusted earnings of $1.98 per share, which surpassed the Zacks Consensus Estimate of $1.93. The metric increased from $1.68 per share reported in the year-ag ...

U.S. stocks traded lower midway through trading, with the Nasdaq Composite falling around 50 points on Tuesday. The Dow traded down 0.09% to 42,891.94 while the NASDAQ slipped 0.28% to 18,488.16. The S&P 500 also fell, dropping, 0.30% to 5,836.28. Check This Out: Top 4 Consumer Stocks That May Dip This Quarter Leading and Lagging Sectors Energy shares rose by 0.5% on Tuesday. In trading on Monday, industrials shares fell by 1.1%. Top Headline 3M Company MMM reported better-than-expected third-quarter adjust ...

Fort Collins, CO, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Over the past two months, the Colorado-Wyoming Climate Resilience Engine has been focused on identifying and supporting groundbreaking climate resilience projects across the region. This included launching the first round of investments in Research and Development and Translation/Startup projects with funding from the U.S. National Science Foundation (NSF) Regional Innovation Engines program. Interdisciplinary, collaborative teams from across the region's ...

Business Separation and Solventum Impact - 3M completed the separation of its Health Care business on April 1, 2024, distributing 80.1% of Solventum Corporation shares to 3M stockholders, resulting in Solventum becoming an independent public company[116] - The company reported a Solventum ownership benefit from the change in value of $3.06 per share for the nine months ended September 30, 2024[119] - Solventum's separation from 3M in April 2024 resulted in a year-on-year benefit of $0.6 billion in Q3 2024 and $1.7 billion in the first nine months of 2024[147] - Net cash of $0.6 billion was transferred to Solventum as part of the separation process in 2024[177] Financial Performance and Earnings - Earnings (loss) from continuing operations per diluted share for the nine months ended September 30, 2024, was $(16.32), impacted by net costs for significant litigation of $20.64 and divestiture costs of $0.02[119] - 3M recorded a gain on business divestitures of $(0.05) per share for the nine months ended September 30, 2024[119] - Net sales for the three months ended September 30, 2024, were $6,270 million, with an operating loss of $3,096 million and an operating loss margin of 49.4%[126] - Adjusted net sales for the three months ended September 30, 2024, were $5,978 million, with adjusted operating income of $1,292 million and an adjusted operating income margin of 21.6%[126] - Adjusted net income from continuing operations for the three months ended September 30, 2024, was $934 million, with adjusted earnings per diluted share of $1.68[126] - Total Company GAAP net income was $(11,588) million, but adjusted net income (non-GAAP) improved to $3,215 million, a 18.2% increase[132] - Net income from continuing operations attributable to 3M was $1,801 million, with adjusted net income (non-GAAP) at $1,884 million, reflecting a 22.7% margin[131] - Total company net sales increased by 0.4% to $6,294 million in Q3 2024, while operating income was $1,316 million compared to a loss of $3,096 million in Q3 2023[139] Segment Performance - Net sales for the Transportation and Electronics segment for the three months ended September 30, 2024, were $2,171 million, with an operating income of $389 million and an operating income margin of 17.9%[126] - Adjusted net sales for the Transportation and Electronics segment for the three months ended September 30, 2024, were $1,879 million, with adjusted operating income of $494 million and an adjusted operating income margin of 26.3%[126] - Net sales for the Safety and Industrial segment for the three months ended September 30, 2024, were $666 million, with an operating income of $666 million and an operating income margin of 24.2%[126] - Adjusted net sales for the Safety and Industrial segment for the three months ended September 30, 2024, were $708 million, with adjusted operating income of $708 million and an adjusted operating income margin of 25.7%[126] - Transportation and Electronics segment sales declined by 1.5%, but adjusted sales (non-GAAP) grew by 1.8% after removing the impact of manufactured PFAS products[131] - Safety and Industrial segment operating income margin was 23.2% on a GAAP basis, improving to 23.7% on an adjusted (non-GAAP) basis[135] - Transportation and Electronics segment adjusted operating income margin (non-GAAP) increased to 24.4%, up from 21.1% on a GAAP basis[135] - Net sales for the Safety and Industrial segment increased by 0.5% to $2,767 million in Q3 2024 compared to $2,751 million in Q3 2023, while operating income decreased by 2.4% to $650 million[139] - Transportation and Electronics segment net sales decreased by 1.5% to $2,139 million in Q3 2024, but operating income increased by 11.8% to $436 million[139] - Consumer segment net sales decreased by 1.2% to $1,299 million in Q3 2024, with operating income declining by 2.5% to $263 million[139] - Sales in Safety and Industrial segment increased by 0.5% in U.S. dollars for the three months ended September 2024[155] - Business segment operating income margins for Safety and Industrial decreased by 2.4% year-on-year for the three months ended September 2024[155] - Sales in Transportation and Electronics segment decreased by 1.5% in U.S. dollars for the three months ended September 2024[157] - Adjusted sales in Transportation and Electronics segment increased by 1.8% in U.S. dollars for the three months ended September 2024[157] - Business segment operating income margins for Transportation and Electronics increased by 11.8% year-on-year for the three months ended September 2024[157] - Sales in Transportation and Electronics decreased by 0.4% in U.S. dollars, but adjusted for special items (non-GAAP), sales increased by 3.7%[159] - Consumer sales decreased by 1.2% in U.S. dollars in Q3 2024 and by 2.6% in the first nine months of 2024[161][162] Restructuring and Litigation Costs - Restructuring pre-tax charges for the first nine months of 2024 were $178 million, compared to $310 million in the same period last year[120] - Net costs for significant litigation amounted to $4,312 million for the three months ended September 30, 2024, impacting operating income[126] - The company faced significant legal and environmental liabilities, including $10.3 billion related to the PWS Settlement and $4.2 billion related to the CAE settlement[172] - Corporate special item net costs decreased year-over-year in Q3 and the first nine months of 2024, primarily due to lower net costs for significant litigation[163] Tax and Currency Impacts - The effective tax rate for the first nine months of 2024 was 19.0%, compared to 24.3% in the prior year, primarily due to litigation settlements and the tax rate associated with the Solventum ownership benefit[121] - 3M's adjusted effective tax rate for the first nine months of 2024 was 20.1%, a decrease of 1.1 percentage points compared to the same period last year[121] - Foreign currency impacts decreased operating income by approximately $91 million year-on-year for the first nine months of 2024[120] - Effective tax rate for the three months ended September 2024 was 20.3%, down from 23.5% in the same period last year[148] Cash Flow and Liquidity - The company repurchased $1,096 million of its common stock in the first nine months of 2024, compared to $31 million in the same period of 2023[142] - Total debt decreased by $2.9 billion from December 31, 2023, to September 30, 2024, due to debt maturities and repayments[166] - Cash, cash equivalents, and marketable securities increased to $7.3 billion as of September 30, 2024, up from $5.8 billion at the end of 2023[166] - Net debt (non-GAAP) decreased by $4.356 billion from December 31, 2023, to September 30, 2024[169] - The company maintains a strong liquidity profile with no commercial paper outstanding as of September 30, 2024, compared to $1.8 billion at the end of 2023[166] - Cash flows from operating activities decreased by $4.7 billion in the first nine months of 2024, driven by $4.5 billion in payments related to PFAS liabilities and the CAE legal settlement[172] - The company invested $890 million in property, plant, and equipment (PP&E) in the first nine months of 2024 to support growth and manufacturing efficiency[173] - Solventum issued $8.4 billion in debt in Q1 2024, partially offset by $2.9 billion in debt maturities, including $1.8 billion in commercial paper repayments[175] - 3M declared dividends of $1.51 per share in Q1 2024, followed by $0.70 per share in Q2 and Q3 2024 post-Solventum spin-off[176] - 3M's commercial paper outstanding decreased to $0 at September 30, 2024, from $1.8 billion at December 31, 2023[175] Regional Sales Performance - Americas region accounted for 55.4% of worldwide sales in Q3 2024, with net sales of $3,484 million and a total sales change of 0.7%[141] - Asia Pacific region net sales increased by 1.4% to $1,783 million in Q3 2024, driven by a 7% increase in organic sales in China[141][142] Cost Management and Productivity - Cost of sales as a percentage of net sales decreased by 1.4 percentage points to 57.9% in Q3 2024 compared to 59.3% in Q3 2023[144] - SG&A expenses as a percentage of net sales decreased significantly to 16.9% in Q3 2024 from 86.4% in Q3 2023, primarily due to settlement charges in 2023[144] - Organic growth, productivity, and restructuring contributed a net year-on-year increase of $0.79 per share for the first nine months of 2024[120] - Business segment operating income margins increased year-on-year, driven by productivity actions and strong spending discipline, partially offset by cost inefficiencies due to the spin of Solventum[159][162] Pension and Postretirement Expenses - Defined benefit pension and postretirement service cost expense for the first nine months of 2024 was $148 million, down from $167 million in the same period last year[151] - Total estimated continuing operations consolidated defined benefit pre-tax pension and postretirement expense for 2024 is approximately $1,025 million[151] Credit Ratings and Working Capital - 3M's credit ratings include A3 (stable) from Moody's, BBB+ (negative) from S&P, and A- (stable) from Fitch[166] - Working capital increased by $3.8 billion compared to December 31, 2023, primarily due to lower current liabilities, including discontinued operations and short-term borrowings[171] PFAS and Legal Risks - Manufactured PFAS products sales estimates for the three months ended September 30, 2024, were $210 million, with costs of sales at $210 million[124] - The company continues to face risks related to PFAS liabilities, legal proceedings, and the impact of the Solventum spin-off on its operations and financial performance[179] Other Financial Metrics - Income from unconsolidated subsidiaries, net of taxes, was $3 million for the three months ended September 2024, compared to $2 million in the same period last year[149] - Net income attributable to noncontrolling interest was $4 million for the three months ended September 2024, unchanged from the same period last year[150] - The company incurred Russia exit charges (benefits) of $(0.04) per share for the nine months ended September 30, 2024[119]

For the quarter ended September 2024, 3M (MMM) reported revenue of $6.29 billion, down 24.3% over the same period last year. EPS came in at $1.98, compared to $2.68 in the year-ago quarter.The reported revenue represents a surprise of +3.18% over the Zacks Consensus Estimate of $6.1 billion. With the consensus EPS estimate being $1.93, the EPS surprise was +2.59%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectatio ...

Financial Performance - Sales of $6.3 billion, up 0.4% year-on-year, with adjusted sales of $6.1 billion, reflecting a 1.5% increase year-on-year[1][4] - GAAP EPS from continuing operations of $2.48, up 154% year-on-year, and adjusted EPS of $1.98, up 18% year-on-year[1][3] - Adjusted operating income margin increased to 23.0%, up 1.4 percentage points year-on-year[3] - Total Company GAAP net sales were $6,294 million, reflecting a 0.4% increase year-over-year[35] - Adjusted amounts (non-GAAP measures) for total company were $6,068 million, representing a 1.5% increase[35] - Operating income for total company was $1,316 million, with an operating income margin of 20.9%[35] - The adjusted operating income margin for the total company was 21.6% for the three months ended September 30, 2023[34] - Adjusted net income attributable to 3M for the three months ended September 30, 2023, was $934 million, with earnings per share of $1.68[34] Cash Flow and Debt Management - Operating cash flow of $(1.8) billion, primarily due to $3.6 billion in net after-tax payments for significant litigation costs[1][5] - Adjusted free cash flow for the quarter was $1.5 billion[1][5] - The company reported a net increase in cash and cash equivalents of $117 million for the nine months ended September 30, 2024, compared to an increase of $1,485 million in the same period of 2023[13] - The company’s long-term debt decreased from $13,088 million to $11,319 million, a reduction of 13.5%[11] - The company reported a total debt of $13,189 million as of September 30, 2024, down from $16,035 million at the end of December 2023[46] - Net debt decreased to $5,874 million as of September 30, 2024, compared to $10,230 million at the end of December 2023[47] Shareholder Returns - The company returned $1.1 billion to shareholders through dividends and share repurchases[5] - Full-year 2024 adjusted EPS guidance raised to a range of $7.20 to $7.30, up from the previous range of $7.00 to $7.30[1][6] - The forecast for 2024 adjusted earnings per share from continuing operations is projected to be between $7.20 and $7.30[37] Segment Performance - The Safety and Industrial segment reported net sales of $2,767 million for the three months ended September 30, 2023, up from $2,751 million in the same period of 2022[22] - The Transportation and Electronics segment had net sales of $2,139 million for the three months ended September 30, 2023, down from $2,171 million in the same period of 2022[22] - The Consumer segment reported net sales of $1,299 million for the three months ended September 30, 2023, slightly down from $1,315 million in the same period of 2022[22] - Business segment operating income for Safety and Industrial was $672 million in Q3 2024, compared to $708 million in Q3 2023[46] Litigation and Special Items - Corporate special items included net costs for significant litigation of $(25) million for the three months ended September 30, 2023, compared to $(4,241) million in the same period of 2022[23] - The company continues to focus on corporate special items related to litigation and divestiture costs, impacting overall financial performance[24] - In Q3 2024, 3M made net pre-tax payments of approximately $3.7 billion related to significant litigation costs, compared to $416 million in Q3 2023[49] - For the first nine months of 2024, 3M's net pre-tax payments for significant litigation costs totaled approximately $4.5 billion, up from $618 million in the same period of 2023[49] - The total special items for the nine months ended September 30, 2023, included net costs for significant litigation amounting to $14,803 million[36] Organic Sales Growth - Organic sales growth was reported at 1.0% year-on-year, despite a slight decline in total organic sales[4][5] - The company anticipates adjusted organic sales growth to be flat to +2% for the full year 2024[6] - Total company organic sales decreased by 0.2% for the nine months ended September 30, 2024, with total sales change also at (0.2)%[39] - Adjusted total company organic sales increased by 1.0% for the nine months ended September 30, 2024, excluding the impact of manufactured PFAS products[39] Strategic Focus - The company is focusing on three priorities: organic growth, operational excellence, and capital deployment for long-term value creation[2] - The former Health Care business segment was eliminated in the second quarter of 2024 due to the separation of Solventum, impacting the overall segment reporting[19] - The company created new divisions within its business segments, including Industrial Specialties and Commercial Branding and Transportation, to enhance operational focus[20] Tax and Regulatory Matters - The effective tax rate for the company was 20.3%[35] - The adjusted effective tax rate for 2024 is expected to be between 19% and 20%[37] - The company reported a provision for income taxes of $348 million in Q3 2024, compared to a tax benefit of $(777) million in Q3 2023[44]