3M(MMM)2025-01-21 11:38Financial Performance - Fourth-quarter 2024 GAAP EPS from continuing operations was 1.68, down 2% year-on-year[3][5]. - Fourth-quarter net sales reached 5.80 billion reflecting a 2.2% increase year-on-year[4][6]. - Full-year 2024 GAAP EPS from continuing operations was 7.30, representing a 21% increase year-on-year[7][10]. - Full-year net sales totaled 23.63 billion, up 1.3% year-on-year[11]. - Adjusted net income for the total company, excluding special items, was 1.70[43]. - Adjusted net income attributable to 3M for the year ended December 31, 2024, was 5.122 billion in 2023[50]. - The adjusted earnings per share from continuing operations for 2024 was 3.8 billion to shareholders through dividends and share repurchases in 2024[2][11]. - Adjusted free cash flow for the fourth quarter was 4.9 billion[4][11]. - Adjusted free cash flow for the year ended December 31, 2024, was 6.294 billion in 2023[50]. - The forecast for adjusted free cash flow for 2025 is estimated to be between 4.3 billion[53]. - Adjusted free cash flow conversion for 2024 was 111%, with a forecast of approximately 100% for 2025[53]. Segment Performance - The Safety and Industrial segment reported a 1.6% total sales change for Q4 2024, while the Transportation and Electronics segment experienced a decline of 4.5%[22]. - Operating income for the Safety and Industrial segment increased from 2.49 billion in 2024, representing a growth of 7.2%[32]. - The Safety and Industrial segment reported net sales of 2,089 million, with an operating income margin of 10.5%[43]. - The Consumer segment achieved adjusted EBITDA of 258 million in Q4 2023, with a margin of 22.3%[58]. Debt and Liabilities - Total assets decreased from 39.87 billion in 2024, a decline of approximately 21.2%[17]. - The company’s total liabilities decreased from 35.97 billion in 2024, a reduction of approximately 21.3%[17]. - The company reported a net debt of 10,230 million a year earlier[58]. - Total debt decreased to 16,035 million in Q4 2023[58]. Future Outlook - The company expects adjusted EPS for 2025 to be in the range of 7.90, with adjusted organic sales growth projected at 2% to 3%[11][12]. - Full-year 2025 adjusted operating cash flow is anticipated to be between 5.3 billion, contributing to approximately 100% adjusted free cash flow conversion[11][12]. - For the full-year 2025 forecast, total company sales are expected to grow by 0.5% to 1.5%, with organic sales projected to increase by 2% to 3%[49]. - The effective tax rate for 2025 is expected to be approximately 20%[47]. Special Items and Litigation Costs - Corporate special items included net costs for significant litigation of 76 million in Q4 2023[32]. - The company incurred net pre-tax cash payments of approximately 973 million in 2023[59]. - Total special items for 2023 included net costs for significant litigation amounting to $14,869 million[45]. Sales Trends - Organic sales in the Americas for the year ended December 31, 2024, were up by 0.1%, while Europe, Middle East, and Africa saw a decline of 2.3%[22]. - The Americas region saw a sales increase of 1.2% in 2024, while the Asia Pacific region reported a 0.8% increase[46]. - The United States saw a total sales change of 1.7%, with adjusted sales (non-GAAP) increasing by 2.2%[49]. - The change in value of 3M's retained ownership interest in Solventum common stock was reflected in other expense (income), net[66].