3M(US:MMM)2024-07-26 10:35Earnings Per Share (EPS) - Q2 2024 GAAP EPS from continuing operations is $2.17, up 117% YoY, compared to $(12.94) in Q2 2023[1][3] - Adjusted EPS from continuing operations for Q2 2024 is $1.93, up 39% YoY from $1.39 in Q2 2023[1][3] - Total Company adjusted earnings per share (non-GAAP) for Q2 2024 were $1.93, a 39% increase year-over-year[50] - Full-year 2024 adjusted EPS guidance updated to $7.00 to $7.30, from the previous range of $6.80 to $7.30[7] - 2024 full-year adjusted earnings per share (non-GAAP) forecast is between $7.00 and $7.30[59] - Q1 2024 diluted earnings per share was $1.27[81] - Q1 2024 adjusted diluted earnings per share (non-GAAP) was $1.71[86] - Full-Year 2023 diluted loss per share was $15.17[81] - Full-Year 2023 adjusted diluted earnings per share (non-GAAP) was $6.04[103] Sales Performance - Q2 2024 net sales are $6.255 billion, down 0.5% YoY, with organic sales down 0.3% YoY[2][5] - Adjusted sales for Q2 2024 are $6.019 billion, up 1.1% YoY, with adjusted organic sales up 1.2% YoY[2][5] - Total sales change for the three months ended June 30, 2024, was (0.5)% worldwide, with organic sales declining by (0.3)%[24] - Total sales change for the six months ended June 30, 2024, was (0.5)% worldwide, with organic sales declining by (0.3)%[25] - Total Company GAAP net sales for Q2 2024 were $6.255 billion, a decrease of 0.5% year-over-year, with adjusted net sales (non-GAAP) at $6.019 billion, reflecting a 1.1% increase[46][50] - Adjusted net sales for Q2 2024 are $6.019 billion, up from $5.951 billion in Q2 2023[72] - Full-year 2024 adjusted total sales growth forecast remains at (0.25%) to +1.75%, with adjusted organic sales growth flat to +2%[7] - Q1 2024 net sales were $6.016 billion[81] - Q1 2024 adjusted net sales (non-GAAP) were $5.735 billion[86] - Full-Year 2023 net sales were $24.610 billion[81] - Full-Year 2023 adjusted net sales (non-GAAP) were $23.321 billion[103] - Q2 2023 net sales were $6.283 billion[92] - Q2 2023 adjusted net sales (non-GAAP) were $5.951 billion[92] Operating Income and Margins - Adjusted operating income margin for Q2 2024 is 21.6%, up 4.4 percentage points YoY from 17.2% in Q2 2023[5] - Q2 2024 GAAP operating income margin is 20.3%, compared to (148.9)% in Q2 2023[5] - Total Company GAAP operating income for Q2 2024 was $1.272 billion, with an operating margin of 20.3%, while adjusted operating income (non-GAAP) was $1.303 billion, with a margin of 21.6%[46][50] - Transportation and Electronics segment adjusted operating income (non-GAAP) for Q2 2024 was $426 million, with a margin of 22.3%[46] - Safety and Industrial segment adjusted operating income (non-GAAP) for Q2 2024 was $623 million, with a margin of 22.6%[46] - Q1 2024 operating income was $1.149 billion, with an operating margin of 19.1%[81] - Q1 2024 adjusted operating income (non-GAAP) was $1.223 billion, with an adjusted operating margin of 21.3%[86] - Full-Year 2023 operating loss was $10.689 billion, with an operating margin of -43.4%[81] - Full-Year 2023 adjusted operating income (non-GAAP) was $4.344 billion, with an adjusted operating margin of 18.6%[103] - Q2 2023 operating loss was $9.358 billion, with an operating margin of N/M (not meaningful)[92] - Q2 2023 adjusted operating income (non-GAAP) was $1.021 billion, with an adjusted operating margin of 17.2%[92] Segment Performance - Safety and Industrial segment operating income was $612 million for the three months ended June 30, 2024, up from $534 million in the same period last year[32] - Transportation and Electronics segment operating income was $428 million for the three months ended June 30, 2024, up from $410 million in the same period last year[32] - Consumer segment operating income was $219 million for the three months ended June 30, 2024, down from $235 million in the same period last year[32] - Net sales for the Safety and Industrial segment were $2,759 million for the three months ended June 30, 2024, compared to $2,765 million in the same period last year[32] - Net sales for the Transportation and Electronics segment were $2,143 million for the three months ended June 30, 2024, compared to $2,191 million in the same period last year[32] - Transportation and Electronics segment GAAP net sales for Q2 2024 were $2.143 billion, down 2.2% year-over-year, with adjusted net sales (non-GAAP) at $1.907 billion, showing a 2.6% increase[46] - Safety and Industrial segment GAAP net sales for Q2 2024 were $612 million, up 22.2% year-over-year, with adjusted net sales (non-GAAP) at $623 million, reflecting a 22.6% increase[46] - Safety and Industrial segment adjusted EBITDA for Q2 2024 is $760 million, up from $746 million in Q2 2023[71] - Transportation and Electronics segment adjusted EBITDA for Q2 2024 is $510 million, up from $446 million in Q2 2023[71] - Consumer segment adjusted EBITDA for Q2 2024 is $258 million, down from $273 million in Q2 2023[71] Cash Flow and Financial Position - Operating cash flow for Q2 2024 is $1.0 billion, with adjusted free cash flow of $1.2 billion[3][5] - Adjusted free cash flow for Q2 2024 is $1.165 billion, down from $1.463 billion in Q2 2023[69] - Net cash provided by investing activities was $(856) million, compared to $(619) million in the previous period[22] - Net cash provided by financing activities was $3,263 million, compared to $(1,519) million in the previous period[22] - Net debt as of June 30, 2024 is $2.711 billion, down from $10.230 billion at the end of 2023[78] Adjusted EBITDA - Adjusted EBITDA for Q2 2024 is $1.576 billion, up from $1.301 billion in Q2 2023[71] - Adjusted EBITDA margin for Q2 2024 is 26.2%, compared to 21.9% in Q2 2023[71] Net Income - Net income attributable to 3M for Q2 2024 is $1.145 billion, compared to a loss of $6.841 billion in Q2 2023[69] - Total Company adjusted net income (non-GAAP) for Q2 2024 was $1.070 billion, a 39% increase year-over-year[50] - Q1 2024 net income from continuing operations attributable to 3M was $705 million[81] - Q1 2024 adjusted net income from continuing operations attributable to 3M (non-GAAP) was $951 million[86] - Full-Year 2023 net loss from continuing operations attributable to 3M was $8.402 billion[81] - Full-Year 2023 adjusted net income from continuing operations attributable to 3M (non-GAAP) was $3.346 billion[103] Litigation and Divestiture Costs - Net costs for significant litigation in Q2 2024 were approximately $428 million, compared to $129 million in Q2 2023[109] - Total payments for significant litigation in the first six months of 2024 were approximately $799 million, compared to $202 million in the same period of 2023[109] - Divestiture costs in Q2 2024 were approximately $58 million, compared to $94 million in Q2 2023[110] - Total divestiture costs in the first six months of 2024 were approximately $192 million, compared to $148 million in the same period of 2023[110] - Divestiture-related restructuring actions in the first six months of 2024 resulted in payments of approximately $2 million, compared to $8 million in the same period of 2023[111] Tax and Other Adjustments - Payments related to the Tax Cuts and Jobs Act (TCJA) in Q2 2024 were approximately $193 million, compared to $126 million in Q2 2023[111] - 2024 adjusted effective tax rate (non-GAAP) forecast is between 19% and 20%[59] - Total special items adjustments for Q2 2024 are $2 million, compared to $10.348 billion in Q2 2023[73] - In Q2 2024, 3M recorded a non-cash pension settlement charge due to transferring a portion of its U.S. pension payment obligations to an insurance company[112] - The change in value of 3M's retained ownership interest in Solventum common stock was reflected in other expense (income), net[112] - 3M completed the separation of Solventum in April 2024, with associated tax costs and restructuring actions impacting financial results[110][111] Strategic Initiatives - 3M plans to exit manufactured PFAS products by the end of 2025, with impacts reflected in the Transportation and Electronics business segment[112] Shareholder Returns - 3M returned $786 million to shareholders in Q2 2024 via dividends and share repurchases[5]