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Organic growth was driven by our Transportation and Electronics business as the team won share gains from spec-in wins and new product introductions with automotive and consumer electronics OEMs. This drove strong organic growth as the OEMs ramp production for new launches for end customers.
Geographically, year-on-year strength in China and EMEA was driven by our strength in electronics and automotive
elec + auto strong , npis
Transcript
2024 Q1
1 May 24
In Q1, we also finalized 2 major legal settlements.
First, our settlement agreement with U.S.-based public water suppliers received widespread support and participation. It was granted final approval by the court on March 29. We anticipate making total payments with a pretax present value of up to $10.3 billion over the next 13 years.
The first payment is expected in the third quarter of 2024.
It is important to note our agreement with public water suppliers addresses the detection of any type of PFAS at any level. This includes PFAS that have already been detected or may be detected in the future, including those that are the subject of the U.S. EPA's recently announced limits in drinking water.
Second is our settlement of the Combat Arms multi-district litigation.
As of today, more than 99% of claimants have chosen to participate. This provides us the certainty and finality the settlement was intended to achieve. We anticipate making total payments up to a pretax present value of $5.3 billion through 2029.
We also continue to make good progress on our exit of all PFAS manufacturing.
legal settlermtsnts payments
Transcript
2024 Q1
1 May 24
e delivered revenue of $7.7 billion, including improved organic growth, operating margins of 22%, up 400 basis points; and earnings of $2.39 per share, up 21%.
7.7 bn in rev skighnlty brtter thab 7.6bn
Transcript
2024 Q1
1 May 24
As mentioned, once the spin is complete, we will hold an investor meeting and provide an update on our outlook for 2024 that incorporates these factors.
In summary, we are building on our momentum and driving sustainable operating improvements that will drive improved financial performance. I want to thank the 3M team for their dedication and focus as they continue to deliver for our customers and shareholders.
That concludes my remarks.
update guidance when spin is complete
Transcript
2023 Q4
14 Feb 24
Overall, our restructuring program remains on track to deliver pretax savings in the range of $700 million to $900 million with a similar level of charges upon completion. We anticipate our actions will be largely done by the end of 2024, with benefits carrying into 2025.
700-900 by 2025, with ztions completde in 2024
Transcript
2023 Q4
14 Feb 24
an increase of 160 basis points year-on-year and 390 basis points sequentially
mgn expsansion 160bp
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2023 Q3
24 Oct 23
hen we started the year or we came into the year, we had said margin rates for the year are going to be around 19%. At the end of Q2, we said margin rates are going between 19.5% to 20% for the year. And now based on where we are with the midpoint of our guide, our margin rate will be approximately 20%.
So when you back into it, the fourth quarter is higher than the 19.5% that you have. It's somewhere in that 20.5% to 21% for the fourth quarter. And just to keep in mind, the reason you see this decremental. One is, of course, the restructuring is higher in Q4 versus Q3 plus it's higher of -- the midpoint is $95 million to $100 million of restructuring on a year-over-year basis if you're doing year-over-year decrementals.
margin colour
Transcript
2023 Q3
24 Oct 23
One is continued execution in the supply chain with some of the restructuring that we have made, and the supply chain is definitely more agile.
We are also using a lot of data and data analytics.
We have also learned through the pandemic on how to continue to operate our supply chain.
So number one, you're starting to see the benefit of the improved yield and efficiency.
You're able to take longer runs, too, as material gets better.
Secondly, the team has been very thoughtful in proactive cost management. To the extent where they saw there were places they could invest, they have. To the extent where we had lower volumes, we have managed to control cost.
Third is we have had a relentless focus on working capital with inventory. And you're seeing that from a cash conversion basis.
So I would just say it's continued, good, strong operating performance that you're starting to see.
And then as you add on the benefits that you get from the restructuring and once the cost goes away, which we have said this program will take approximately 2 years to complete out, you can see the overall, long-term benefits from the margin rate that you're going to get from better operating performance as well as better restructuring benefit
underlying margin expansion
Transcript
2023 Q3
24 Oct 23
And then when it comes to price, I would tell you, we came into the quarter -- into the year, we said low single digits price increase. That's what we are -- as of right now, we are on track with pretty much the same range. And Joe, as you know, you've followed 3M longer than I have, this is not a formula-based pricing.
We are very thoughtful about it. We look at it market-by-market, product-by-product, and we make sure that the price that we are charging our customers is a representation of the value that we -- that our customers get.
pricing colour
Transcript
2023 Q3
24 Oct 23
And so I think part of the answer to your question is we took those decisions to lean out the center of the company, simplify our supply chain, streamline our go-to-market models.
productivoty actions
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2023 Q3
24 Oct 23
Consumer business
consumer v bad and mgn not good too
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2023 Q3
24 Oct 23
Health Care
health care, oral care and med solutions
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2023 Q3
24 Oct 23
Adjusted operating margins were 26.3%, up 460 basis points year-on-year and up 650 basis points sequentially. T
t & e op mgn v up 460bp
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2023 Q3
24 Oct 23
We are starting to see signs of stabilization in consumer electronics end market
signs stabiizarion in cons electronics
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2023 Q3
24 Oct 23
Transportation and Electronics
t and e
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2023 Q3
24 Oct 23
Adjusted operating income was $708 million or up 5% versus last year. Adjusted operating margins were 25.7%, up 250 basis points year-on-year and up 350 basis points sequentially. The year-on-year improvement in margins was mainly driven by ongoing productivity actions, restructuring benefits, strong spending discipline and price. Partially offsetting these benefits were headwinds from lower sales volume and restructuring costs.
s ad i -- ;lower volume , but good procing and productivity
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2023 Q3
24 Oct 23
Safety and Industrial
saftery amd industrial
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2023 Q3
24 Oct 23
This year-on-year improvement was driven by our ongoing focus on working capital management, especially inventory. Inventory was down over $200 million sequentially and $550 million year-on-year as we benefit from the power of daily management and data and data analytics to speed up inventory ter
wc improvement notanly cash flow
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2023 Q3
24 Oct 23
Pretax restructuring and related charges in the quarter were $68 million or a negative impact to margins of 80 basis points and $0.10 to earnings. This charge was lower than our anticipated range of $125 million to $175 million in Q3 due to factors that impacted the timing of actions that are being pushed into Q4.
chareges lower than expected
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2023 Q3
24 Oct 23
This softness was partially offset by strength in our automotive OEM business.
auto oem stromg
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2023 Q3
24 Oct 23