3M Co

Latest Results (23.05.2024):

3M Co reported its third quarter 2023 results, highlighting a GAAP loss per share of $3.74, primarily due to a significant pre-tax charge related to the Combat Arms Earplug settlement. Despite this, the adjusted earnings per share (EPS) was $2.68, reflecting a 3% increase from the previous year, driven by strong operational execution and disciplined spending.

In the third quarter of 2023, 3M Co experienced a decrease in total sales by 3.6% year-on-year, amounting to $8.3 billion. The decline in organic sales was 3.7%, influenced by a decrease in disposable respirator demand and the company's exit from Russia in 2022. Adjusted sales, excluding manufactured PFAS products, stood at $8.0 billion, down 3.0% year-on-year.

3M Co demonstrated a robust cash generation in the third quarter of 2023, with operating cash flow rising by 25% year-on-year to $1.9 billion. The adjusted free cash flow saw an impressive increase of 39% year-on-year. Additionally, the company returned $828 million to shareholders through dividends, underscoring its commitment to delivering shareholder value.

Based on its performance in the first three quarters of 2023, 3M Co has raised its full-year expectations for adjusted EPS and adjusted free cash flow conversion. The company now anticipates an adjusted EPS in the range of $8.95 to $9.15 and adjusted operating cash flow between $6.5 billion and $6.9 billion, aiming for a free cash flow conversion rate of 100 to 110%.

3M Co continues to address its legal challenges, having reached a settlement in the Combat Arms Earplug litigation with a pre-tax charge of $4.2 billion recorded in the third quarter. The company is also progressing with its plan to spin off its Health Care business, expected to be completed in the first half of 2024, as part of its strategic realignment to enhance operational efficiency and focus on core business areas.