MMM - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the 3M Third Quarter Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] It is recommended that you use a landline phone if you're going to register for a question.

conference recorded, this XXXX. October reminder, a is Tuesday, being XXth, As XM. would the President Senior at turn like of over Relations I to Jermeland, call now to Bruce Investor Vice

Bruce Jermeland

welcome like take will posted Thank Financial Quarterly Officer. remind your to mark we'll for Relations call. you Earnings. XXXX. are and as on and you questions. website me Mike our Executive Transformation heading to and calendars conference are a make call, Mike XXth, note forward-looking January comments that next turn XM's place today, under X. Please morning, I'd statement Slide to then patolawala, Officer, take and everyone X, and With our Quarter the take Monish throughout some Investor earnings Please good which moment formal Xrd to your our earnings presentation on conference Chairman Chief Monish Please and the Slide Tuesday, release done Roman, and will we to acCompanying at on and our Chief have earnings call Xm.com year, this today's read slide the

measures. to measures press attachments found references throughout and today's to Mike. most it make release. to views risks statements based and the results uncertainties. and subject certain Reconciliations Form from call, off reflect now important XA financial our hand assumptions lists that note recent and our predictions. X, be differ to our risk to current XX-K, Mike? the Please making to certain presentation, on most conference today's results. factors cause These During events future about non-GAAP are non-GAAP in that we'll performance today's turn I'll future some can are the XM's of actual predictive financial Slide that statements expectations could of be Please of certain of we'll Item

Mike Roman

our good you in thank in businesses our as resiliency the a our X% X%. all the QX groups morning, with with cash drove performance third margins strong flow. world Americas, per In delivered you, end-year-to-date, and have has environment, APAC growth and and with everyone. was our XXXX organic Thank up along growth $X.XX for around of And throughout the with up over business and US led XX% the was dynamic earnings of across of In organic the joining our Good broad-based business quarter across we growth relevance technologies. Bruce. by people the Geographically, skill China the us. was geographic and up X% of the areas, growth model, market-leading Japan margins share. quarter of X% innovation up we X% shown X%,

strong, the to the in and continues respect With X%. semiconductor demand end-market grew automotive. EMEA most remains visibly impact to shortage While though electronics overall macro-environment, many markets,

As we navigate will we I invest which productivity, sustainability, and to in uncertainty, shortly. growth, near-term discuss continue

a service. focus also global managing are disruptions chain the We relentless in on supply customer with actively

well make and chain executed share. managing XX% of are updating we along how actively is on organic like X% growth results all our of Today, range to $X.XX, and to EPS $X.XX to-date a groups would range XX%, for challenges. a reflecting challenges. to to earnings Looking comments have business delivered I few and and to about months, per supply a X% at margins of full-year those $X.XX growth, ongoing nine through XM XX% performance of organic our expectations we with with

of and As variant, including and issues, of strong you disruptions. know, result companies energy Delta many demand, events. extreme are supply The chain shortages, convergence labor facing weather the a

world. working tirelessly up countries number are working XX around port On supply strategy, cornerstone XXX sites local is XX% move of more our we freight challenged with the customers. the to across with are factoring And water exporter keep is us given the $X billion helps for along The last out year. and chain annual US, have more any expertise suppliers chain ocean on XM's And because a and than over predictable of congestion.Suppliers our agility as our manufacturing our factories provide which and constraints. running. costs supply consistent to With in the with of we day deep than supply. the example, local doubled are serve managed relationships of response the and with For containers critical

meetings are strengthen daily the our Hard some have meet to but we most ensure critical in and geographies planning, our and of to decisions markets and portfolios. with We customers. needs instances, suppliers prioritizing strategically necessary

product several real-time. using are are of different to new talent of key of while to expanding and also safety charter in as our of the We Maintaining moving and better flights flexible and shipping track such of employees. goods in by our ways, XX%, out use increasing rail, workers our is flow ports, use tactics our health protecting deploying capabilities while all attract new of we more over

care inflation. our to high-quality increases, our including of predict. supply price of productivity the to of duration Ultimately, are the strong our to with actions what of along customers. supply multiple is turn chain more and dual-sourcing, hallmark is also necessary taking do on on. X. work impacted backlogs, challenges offset that improving with delivering We're of serving to Please and difficult XM. touch Monish challenges good is Slide will broad-based and to to actions customers, the have managing inflationary gross remain products Some these demand help focused The We contributing we unique, margins,which yields, But will chain do. take combination pressures, factory on commitments, making

XM's that build growth keep rates. franchises including day-to-day, home families adhesives plus Auto for execute leverage markets. non-woven brands Filtrete, in example, business, are healthier drive on The in productive, multiple $X.X are fast-growing we home capitalize and outgrows and In solutions consistently success to automotive we filtration deep attractive year-to-date. technologies long-term more our products.These investing electrification While have hanging same large, sales trends in drive and billion which improvement materials. our up XX% expertise helping damage-free command, and we

productivity unprecedented to manufacturing of years address unique advanced year-to-date position has to us in advancing advanced automobiles expand On we XM renewable therapeutics growing across innovations, the XX% than XX% to of four allowing the areas. our months XX% up capabilities, operations, invest next achieved electronic over including the become brands leading the timeline, global more way way, as is technologies the XX electricity manufacturing, pandemic. scale win. platforms, and strength With device. business of data as of Science past the similar to our our XM our pace on these operations, fundamental use technology vaccines, and to develop analytics. our consumer And market display and and capabilities of new use we're to our more driving in have than strengths In us healthcare, biopharma a digital will our by we data sustainability, The annually. ahead In In continue supported advancement XXX%. help

our of to goals environment to environmental investments the use, are industrial returned accelerate carbon in from processes. the our neutrality, year, We water the achieve announced water to we and the ability the making quality advancing reduced earlier improve

next communities years government the on closing factories standards disposal making our Cottage million proactively In factories. Minnesota, announced addition, are taking with strategic that more sustainable. XM's go we PFS. PFAS, to road are current improve commitments. and leading to broke fast manage new our deliver science-based managing a Euros XM and incinerator and to proactive we fast over week, we Company working ground and to with to Grove streams. add the a to up water approach waste our partnering With and These In around related recently stronger XX:XX:XX] we with our to last a others, just Biden and to and in X EPA, map technology others announced and issues more remains We beyond efficiently invest respect committed to to administration, [inaudible working managing officials ability resolve Cordova regulatory are our P the Illinois. will Belgium, we're XXX initiatives p accelerating filtration quality

Bellwether Let The impact Alabama. litigation litigation and arms, agreement trials the early Last for far, continue collaborative there updates. here resolve a have we facility, disclosed few our the included including been defend a our touch to to fourth me process. this announced through in trials in indicator additional week, in ourselves, we is actively six previously quarter, in on litigation combat appeal will so are also related On with PFAS reserves.

positioning XM Unlocking strong the driving for which growth. updates people, create what's matters. in our encourage markets purpose, environment, we XM attractive we litigation always, is are power by challenging results up, proud to you As and re-imagine common To on in I'm science, our what's of end for and possible XX-Q ideas, to continued and investing next. of team, a wrap united all a read

over the quarter. we it of will Monish. turn Now, details cover will Monish, who the

Monish Patolawala

Thank all X. Please Slide turn wish I very to you, you Mike. And a morning. good

logistics resilience environment, of Though our and supply-chain the executed while on well customers. for serving as challenges quarter, throughout effectively demonstrated quarter. team technologies a the our very XM look the I raw navigating of persisted business As and materials, challenging model the the in back relevance and manufacturing, we disruptions our the innovating

to invest costs. continue operating business rigor driving and in We managing the while

basis. $X.X operating top in third results, XX% increase of margins organic an which year-on-year, Turning $X.X X% at had or Operating coming to X.X% down the in of were with communicated financial billion billion end we on income was sales an previously quarter, X.X% mid-September. the the range, up of

was both to which per last last see year. you share earnings as margins per were QX that the quarter operating year. compared share slide, Third components can impacted to this $X.XX, and similar On earnings

growth resulting organic percentage year-on-year. by more and chain QX Our year Combined, of restructuring offset operating earnings by supply and from margins impacts the $X.XX the headwinds challenges, last announced than growth we in per global and strong these lowered year-on-year in program costs. investments on X.X remains litigation-related track. share points, The volume sustainability, was by

of this the restructuring we incurred third achieved Pretax quarter. This charge offset charge by program the benefits was million we a $XX part quarter. As of this in

Moving raw materials. to price and

selling year-on-year up the with as in points As expected, gain QX XX points went selling increases through basis in versus XXX in prices QX. traction price quarter basis we

materials, year. QX manufacturing, which and However, and margins earnings XXX performance selling third-quarter in per Thus, by reduced we costs higher outsourced points basis raw share, to and increase versus respectively the operating price prices. last net selling for and experience continue $X.XX both raw outpaced logistics, materials

year. the we mitigate logistics we throughout as material inflationary QX, traction our to gain we to at continue actions and work to raw expect have Looking pressures selling price the experienced

net XX foreign margins, hedging impacted earnings share.Also, X earnings $X.XX share per by Next, of impacts, non-operating points, currency per year-on-year reduced other performance. and items basis our

First, benefit, debt. to benefit. redemption pension lower non-operating net quarters, other a prior with interest proactive the of earnings Consistent $X.XX expenses along an resulted in was due benefit with $X.XX from early $X.XX our

a $X.XX a earnings rate tax versus benefit was due provided The of lower to share. international favorable related year tax impacts this last to to lower provisions. Secondly, year rate U.S. per tax adjustments

and is outstanding year, Please our our we diluted QX to in increased finally, a tax XX.X%. to by range earnings last shares flow XX% full-year versus tax rate slide of the turn year-to-date Our X XX.X% discussion per to rate versus previously. cash sheet. for $X.XX. of expect now And share XX X% balance XX.X lowering Therefore, average

flow The $X.X Third-quarter similar free flow with was XX% the supply cash was down global transit free a free cash conversion balances in our inflation, conversion flow of result cash billion, primarily Adjusted chain demand, was last $X.X of raw of a along inventory decline strong to more performance XXX% and flow as year-to-date was by with goods challenges. year-on-year to year-on-year due with free XX%. higher year, which customer adjusted material of driven cash in billion ongoing

quarter Third and million capital expenditures $X billion year-to-date. were $XXX

range of we of end $X.X billion $X.X Capex billion. being range to in low to $X our at full-year, investments the prior $X.X of For versus expect the now the

sustainability. We growth, continue investments to productivity, up and step in

continues of supply by However, be projects to the and pace chain vendor impacted constraints.

million form quarter, During repurchases through billion dividends to returned to have returned $X.X million $XXX shareholders repurchases. of we in the $XXX the billion shareholders share the of $X.X year-to-date. dividends of and combination of and share cash we

in cash robust capital business, industrial cash flow along return financial position, allocation I opportunities, to the disciplined and continued growth to driven QX. impacts. to to continues was while safety debt strong turn invest I provide slide prior-year strong for performance manufacturing pandemic-related X.X% net pursue start capital and activities, shareholders generation will summarize strategic with with in structure. us where Our business, Please capability, X, quarter. our posted organic by group year-on-year maintaining flexibility our a which the of will industrial business third Organic growth and

safety our organically, X% up against personal comparison a XX% a First, ago. year declined business pandemic-driven

Third organically Quarter XX% sequentially. year-on-year, disposable and respirator decreased X% sales

Looking demand of respirator ahead, deceleration through we anticipate the disposable and continued into this in year XXXX. balance

the was adhesives tapes, led and organic Turning in abrasives, and growth to of rest and increases double-digit electrical industrial, safety markets. by

productivity litigation-related logistics, down and In growth comparison systems than Operating XX% quarter single-digits. XXX from on was Industrial's addition, roofing were by along impacts. increases and up third more with declined raw margins against a and manufacturing masking million ongoing Safety materials, operating up year. closure points sales $XXX was low-single-digits, Automotive income last XX.X% was high down offset versus while leverage basis last as costs, year-on-year, strong aftermarket, year. in granules

transportation to chain X.X% organically of semiconductor grew which despite and constraints. continued impact Moving the electronics supply

Auto was due global Our few decline to to car a compared business factors. the year-on-year, OEM XX% light flat performance out was bills. in This truck and

continue onto automotive innovation XM new we to by our driving First, penetration grow platforms.

inventories Second, suppliers. in at increase notable we saw channel tier

bill in the through OEMS quarter. reductions forecast the Given dramatic

as from premium higher auto tend vehicle we XM Lastly, which standpoint benefited a produce have mix model to OEMS content. vehicles, more

and by for in with partially decline to electronics, markets. across demand and declines single-digits semiconductor impacts. electronics-related products solutions organically, semiconductor our factory strong as and production were and Our OEMs challenges particularly automation declines low constraints, face smartphones business COVID-related end TVs, ongoing due offset These continued consumer

Advanced Turning to Electronics, while and year-on-year, Commercial the of low-single grew double-digits Safety grew rest and Solutions digits. Materials Transportation each Transportation

margins in logistics XXX productivity by and than was basis manufacturing income sales impacts. with Third which strong costs, XX% materials quarter Operating year-on-year. driven down operating was increases year-on-year, down by leverage more $XXX points were million growth, X% raw on along offset

in dental Care Operating single-digits Health to business, grew the as by Solutions vaccines COVID-related business ongoing in with industry for demand near increased clinician in Along low, the medical up by business Turning high procedures income And pre procedure strong year-on-year double-digits - third increased finally, declined, respirator. service to year-on-year our returns. organically solutions XX% for healthcare hospital growth of information and which of quarter million, organic in our solutions. volumes, COVID biopharma food-safety systems separation points. continued pace decline low of of elective driven as disposable single-digits at X% levels. filtration XX purification business which low $XXX delivered X.X%Our came sales be was The growth demand food impacted the continued XX activity quarter. grew for low the double-digits to were expectations XX.X% operating due double-digits and end Auto to year-on-year. Healthcare's basis third up margins quarter therapeutics. for

with is investments cost, impacts, Third along increased growth, and quarter productivity which on the materials partially raw increasing by offset margins were sales logistics driven manufacturing leverage growth. by in

continued retail organic sell-in trends quarter growth across business, channels. sell-out for our with and was X.X% year-on-year consumer most strong third Lastly,

Our well, year's continued double-digits QX, This on strong top home perform of this -related up and last category, our to grew particularly business in franchises. improvement strong year comparison a and demand, continues from to high single-digits command laps ago. experience a comparisons. COVID as Filtrete in organically business leading Stationery office business

X% growth. for $XXX points, increased discussion million full-year more XX.X% manufacturing, down -driven related basis as ago. -related from branded and scotch sales holiday year as consumer and logistics, were and COVID finally, turn business and up guidance. high tapes.Our sell-in Consumers and and products, COVID health XXXX versus Operating hard to we year's demand materials, leverage than margins packaging for office posted was lap offset a business And down solutions costs operating raw income a year-on-year. of was shipping single-digits consumer last low back-to-school strong single-digits X slide impacts home our comparison. outsourced care had also We was for up Please home goods scotch safety strong from branded our

reflect across expect remain markets. strong environment, most we demand on end As the we macroeconomic to

the the through. logistics the all ongoing along of chain, materials, that given uncertainty impacts are global companies However, supply and pandemic, persists working challenges raw with well-known

necessarily Looking fluid and to them is navigate doing ahead, we what remain as focused environment. on to continue customers the our we solve

flow, X%. to earnings, end project the now be Turning We our to of ongoing than of $XX.XX. a to as supply-chain our wider we range conversion strong growth. accounting compared guidance, implies $X.XX prior organic a X% And cash X% of This our therefore, the for bottom we XXX%. organic per quarter continue fourth anticipate finally, impacts prior increasing generate and With to share of expect cash range maintaining we're - to growth we of uncertain range versus for our COVID of to the updated $X.XX X% range free expectations to of $X.XX - to flow range XX are free outlook normal full-year to range our respect in environment.

well-known Relative we from cost constraints notably elective procedure we global in gain electronics, impacting healthcare with pressures. continued inventory logistics more demand supply along levels expect to material in consumer the in industrial low perspective, in And respirator, raw the with expect a trends. year. more example, For and to recent our the to mitigate from to semiconductor forecast reflected impacts actions traction disposable chip volumes finally, related pricing elevated the work to production decline we anticipate as channel. growth continue as and markets, most healthcare and for automotive We the stabilize end are

operations. to Turning

greater are we along have inefficiencies production we supply on a more manufacturing a result, in with with actively managing customer we And as chains adjusting focus As changeovers demand global expediting shipments. Therefore, are frequency. with incurring discussed, plans service. relentless

both the ensure But taking actions of costs 're customers. steps and these we necessary the most of are critical needs impacting we meet productivity. All our to

progress incurred $XXX continue million $XXX to to an QX. $XXX additional restructuring date, We pretax $XXX make versus of million. total of have to pretax expect now December in restructuring To over to $XX restructuring announcement. in expectations charges $XX we and $XXX million our We anticipate to relative XXXX charges million original

the remaining of program under XXXX. this the first by be to expect initiated We actions quarter

we in ongoing costs therefore travel In growth, increases addition, sustainability. continue our to to and our customers who and in To the matters, moment XX,XXX other long to close, plus higher And to who us, costs expect invest to anticipate in our are investments placed I increased And with would a in term. to to like thank related indirect for related along finally, supply, vendors productivity, deliver we incur litigation the most business our importantly, customers. faith who like for ensure of continuity our our XMers their take with tirelessly us working have expense. continue

growth, have operating and on your margin, that, thank long We eye rigor, very and attention the term through steady a to your will questions. while deliver navigate we the now uncertainty I for cash to continuing the in With take strong you short-run.

Operator

Instruction] [Operator

Operator

First with Coe Nigel Wolfe your with Research. question. of proceed Please question line comes from the

Nigel Coe

Thanks. Good morning and on thanks for the quarter. the details

So XX%, mentioned Monish, the XQ. margin for you XX%

what's end you you'd not You high or came maybe conservative, like I'm expected it just see curious, to bad of be as mid-September. Obviously, the or as in in quite at back but in range. better that

Monish Patolawala

question, That's Nigel. great

At guild all was said of we regards of time, our And I also uncertainty as XX%, in we you have self-help there letting a flow. chain I of lot it as remarks, I'd as our those as And were came sourcing, together, whether were also of facing the prepared when in it volumes, go things third, the were versus then these XX% range supply some that put the gave same whether through controlling etc. is regards inflation. you we items, a lot think we then that facing at expenses, just XX%. we mentioned my was all doing own to

to basis up, was at it moved we I QX. inflation thought We from a increase say price points would of in QX came to look in we we executed ended XXX on basis much XX be. in where you pretty points going price, If where

that get we So of flow able to in was were supply. supply. to more as and our and we much flow volumes of were We good line, Mike said, were demand, able vendors. pretty to serving as able execute to controlled There's of strong execute well mitigate customers we impact prioritizing could. that much our inflation across sure and on we make as as trying demand, the as corporation were our we expenses to the with

XX% So mentioned to put that we range the I the came at earlier. in, XX XX all of that in versus

Nigel Coe

quarter. -- on your budget two you.On the you and base items, XQ curious great. math bridge, based XX my that but XXX.X looked can XXX your be pipe volume handle. broad That's an that on margin the cost Maybe a like look talk full-year major volume guidance, the does and sense productivity XQ I'd points negative productivity, price for on chain, costs How looks offset, margin based year-over-year? on XQ Thank maybe margins supply maybe this for at and to in if

Monish Patolawala

So things. would of a by sayin, start couple I Nigel,

So your that It's you follow the guide close. real, very if is gave implied we not directionally you. math

about, on I talked couple of is items you think just which a raw. priced the things

quarter. in expect momentum price continue continued have to We the to in fourth

see go hold XXX inflation I slowing points various again the say the things basis to XX should up would to continues and saw product geographies environment any that or lines, before. take way. go about up in we've raw don't down material talked and we You across see from that us the price as we

are to that what think going costs to depends see logistics what on be. to does. I on the going It season holiday depend going you're volatility. It's

would materials question. goal lot at out, on polypropylene, we The I where going inflation? your be, how point in a turn X etc, seen some and get is the Our ethylene, have some like, a see of raw do neutral. to commodities itself we question play that's is of to to say does number

down that to secondly, you of just XM a XM. bridge there of the to factories customers I are XQ There's looking XQ another a that's X just think slowed in was there would normal you're impact XQ, have less revenue. from many the seasonality things the day billing and on couple impact. I during if on and industrial our you as one have remember holidays say that point with

else I happy Nate. So anything question, answer, answered there's to you've I'm think your but if

Nigel Coe

Monish. No, that's perfect

Operator

you. Thank

Our comes next Jeff of line your the proceed question. from Partners. Vertical question with Sprague Please Research with

Jeff Sprague

Good morning, you. Thank everyone.

Mike Roman

Good morning. Jeff. Hey,

Jeff Sprague

forward, Just want suppliers, more up, auto may just think if now, to you wondered, a touch kind obviously Kind have and pick look we burn us shifts was laid as on significant there on you could but that on I little extraordinary should the bit. headwind wondering divergence I little numbers out, you volumes going of you a there. as and of give going does that have inventory I what's create back. some perspective mix for a off

Mike Roman

a that parts there's I'll of Maybe to couple talk about.

and some we've in reflective for premium, and were OEM -- dynamic our demand innovations similar. of continuing Monish in which more is then penetration and mix some we when The this outgrow have in production And level we there to spec innovation, of a our in opportunities. higher like vehicles talking rates something for year -in's QX challenges design-in as the it's the plans environment mentioned the you build outlook drive first We're vehicles. being those been what for where rates if done build are swinging down year-to-date, really about look of been we've even time, the at this QX

electrification. traction, very priority growth year-to-date. getting in platform and XX% Auto have also our growth broadly, good good We and

not in as are are everybody expect production chains, those these and quickly dynamic we that challenged would a with. those so keep go come with -- about momentum challenging are the it's said So good see we going, driving in chain we the has the again, portfolio results, rates really in continue changing mix inventory, up through see build is and seeing be excess channel trying everyone year-to-date pretty and that. supply the is really up see our inventory to where against year-to-date track where I going, value We of we forward. with all to rates The to for we're impact matching been a our well matching in as to the up changes to don't with plans, rates. That we to and and -- the build say able perform build from performance

Jeff Sprague

sliding your and think When Capex seasonal a what slowdown don't customers your, of on to up. backlogs did just here kind have seeing some you run little possible you are your heard with have are trying and I on of execute as get planned talk do. actually Monish maybe caught we Capex, out seasonal And what it's move, about your kind people try sort that separate slowdown normal but these and own unrelated, of everybody and projects of the that a to bit you of right? full Do

Monish Patolawala

It will XX/X, I, and I we're it whatever production possibility seeing make Overall, seeing helpful continue is customers. by a in out phenomenon. to from to you do and we're Jeff. Listen, why that what as as end-market good them. we now. through right keep sure still seeing have invest. customers Mike Is Absolutely giving our short-term running serving trying this good say Long-term, keep that that continuing to trends. more a question is -- Yeah. so us possible we're be you're there's that comes takes to there And mentioned that's would

pressure times that's And slow were to the there and working going next we're the saying, keep for done to to we well the for raw customers than at areas So I see expansion had time, we're to to your buckets, very fight, because strong it with material furiously where as are we we but Capex the we get thought. originally by material and these investing, sustainability, having as the is which cycle where is by the This we raw get had end our above macro, would to cash. investing as long some we to keep and just that growth, point the for say all the on we in term and how doing looking takes can question the make team sure keep we your businesses have, growth, would taking Capex teams same and X that long mitigate be the just piece it serving productivity, productivity, as keep X.X, of is X.X to I down not sustainability margin keep demand Jeff, just knows we where to longer can to -- why whatever quarter. are we grow the bright and

Jeff Sprague

thanks for color. the Great,

Operator

Our of Barclays. line with proceed from Please comes question with your question. Julian next Mitchell the

Julian Mitchell

Hi, question demand. from the the X% different down around QX. presence QX, Kong rate industries. region. growth last low Quarter in morning. slowed, Good in Hong to large very XM in just think on I has The Maybe Good China, that double-digit low and thirties first a obviously perspectives And was

going expect good or world the just do as we the in do of being China, quarter about what's Hong idiosyncratic recovery wondered, see and down there matures. for just the how So describe you pace template or think maybe on that think what elsewhere a fourth in we slowdown should is as maybe different demand may that Kong be you

Mike Roman

step mid-teens -- up you Julian, at us. 's year-to-date, if look Yes, look and back China for

it's pointed closures. logistics, the our been I saw the in chain, supply So business. having out, Those talking about, growth strong QX. of a about impact say X% of what of domestic that, would port think in through an business we as we've are as impacting same And in customers just to to a And And probably reflective so exports I things quarter. them are you we of our areas China. exposed the XX% in we China, -- sit. that's hard to XX% sell China manufacture factories about market. the to in And we exports reminder, most sell the from one

about So it's XX%. down

as forward, Looking that's with forward QX. go expectation the we

we've segments prioritizing chain hurt been see us,our we and line those as are be very the has in investments what talking came being much continuing. for with we've by we trends impacts, that'll been of supply really and one there been that been see one growth the about in the most through of China impacts has we So high-growth pandemic, challenges focus the market

So winning that led our businesses we we And we have each and go we QX. we've opportunities Our to Care business QX continue are the into growth expect do with we actually where focused that's -- we're of in strong year-to-date, the across business Healthcare focused kind where Home been solutions. as the are of we're in see

Monish Patolawala

mentioned Julian, trends. add items the point on Mike's on just the to all you to macro

year-over-year Just the on quarter X%. basis for to at a

quarter last year. had first. got strong to in of You at the also last a the had of We if you growth comp seen to pandemic of the out very remember, China, starting third come look year, China you

other of higher the and the were quarter.And third reason patterns see you a that's into end in the X% order their So like June then

Julian Mitchell

business on the margins. are sizing That's helpful.Thank maybe that But you.Maybe margins. of as what's just legal legal sequentially. the safety on costs. that supply margins,understand that terms impact my things into having the of moves chain and next follow-up could bleed that's markets expect and around the of Thank impact Any industrial focusing impact And you as year color on on some you. constraints Perhaps headwind. having well? the the going in And provide also those we do respirator on two slower to with

Monish Patolawala

the costs we CBG that litigation are ones, legal on show on incurring arms Yes, the X one, are margins. combat the sure in up Julian.There

quarter. continuing fourth an to litigation. As defend Mike ourselves acceleration mentioned, in There's the we that are in

we've which of the EPS because quarter done depending 'XX? Do for by goes. We disposable earnings say, into talked as pandemic be you I On all bleed the X call, litigation going on depending about, QX sequentially Yes, consistently, how have XXXX seen our prepare. it seeing these peak. We has have fourth will how out. revenue itself we're mentioned played on come in the will MDS see down. that felt We respirators would last even not of more to was we had

year-over-year in X% the nearly further a we depending sequentially. on XX in quarter. the We XX pandemic between You down to cases [Indiscernible] And XX where to go are you on starting XXX down will third come down. basis that impact we've up, COVID cases, into see other But the where have then XXXX. you're seeing up seen a again, where or see came seeing are that go you an seeing goes, and demand have demand in to pockets

levels for have we've hopefully not we event. pretty job respirator we've in as So nice next we'll of but be X.X talked the quickly. world, environment the that manufacturing history ready for billion managing this factor but it's before, cases, respirators But disposable of our are go dynamic certain this, in side, The managing up very a the we on shutdown ready capacity we happens. as cases, never but being certain got the inventory can be ramp we'll through really we team's And of lines that. done that's

Julian Mitchell

Great. Thank you.

Operator

Our comes question. Research. with from the of proceed next Please with line Millios Scott question your Davis

Scott Davis

Good everybody. morning,

Mike Roman

Hi, Scott.

Scott Davis

pretty this with XQ The in price? holds don't back too. I aggressive think remember into but change, continue CPI I think price What Is and about getting guys these XXXX, you that clearly PPI. strange big pretty CPI you ramp any dramatic quarter-to-quarter quarter increase ramp. a in of before. are times below the was the you far we've mean, step-ups as -- about do and factors of there sequential from I being seen mitigating think But when you kind a

So I'm matters. it not sure really

that some Thank Just on color ramp be would you. helpful.

Monish Patolawala

Scott. Sure,

continue around fourth mentioned remarks, questions to this I will quarter. in it long a price us you few taken us gain they've the in prepared quite why I As my been know price. get to see has

How those price price it doing taken, geographies. we customers. it long consistent, thoughtful goes going in and see after as As where keep but pretty with increases. Right into we we be to contracts comfortable also our We taking are go now, as we've In approach with that in we and think we're XXXX, certain inflation across price mentioned of going 'XX the we before, beyond. cases, I approach And think working increases on to pretty a we're the taking contracts. depend to to. Scott, put I will we constraints with we how work need methodical follow up

to goal to happens neutral, going inflation. the get with depend but of is highly team it's mentioned I As what to upon the

again, don't pricing we -- about and we're try answered I we to your thoughtful question, thinking if And know [Indiscernible] but as how have methodical be I angle. go before, as So said approach approach got in I've from that's a that how you've as different with businesses, specting customers try rigorous for so pretty of work you period specting And are to businesses we you've time. where on and a both. a partnership certain got we how our we it

where got business where got easier are got And consumer And cases contracts. margins, then industrial You got it's then price. healthcare take you've we all you lead. business you've the is working with distributor which big other the half that to my In where retailer. the

different So all that QX we factor each one of QX them And dynamic. seen and and in we that progress have making in made keep in and we'll have beyond. you've progress a

Scott Davis

the you. as seen markets follow-up a improvements what -- you've were and some talk can you or over the in far comments of quarter decrements As emerging the as but outlook? China about Thank major other and helpful,

Mike Roman

around globally. to models Thanks as aligned businesses, XXXX, back we now just are And a Sure. remember our God. go-to-market you reminder, four to if

world. view global the of so regions, give level. businesses a I'll have around strategies -- of them you each of higher And are view a but at And locally everywhere they those the each executing a

year-to-date. and in in all about as the quarter talked The business being groups. and So Latin highest we America's America across came quarters up double-digits X% Canada through low we up growth and the double-digits

globally, similar business you EMEA, year-to-date there, the And again, still groups year. we in the year, way we're to high for are single-digits across the what say how and And talked X%, at seeing in So Quarter X% I'd we X% about. in strong a demand across Americas. in XM doing position, it's broad-based quarter. growing look up we're double-digits for the if the the

to across strong that's as mentioned, electronics are prepared that we All now talked transportation to the areas, seen we other groups recovery seeing. of remarks, And are but mid-teens business improving the again, haven't see growth we and a growth Asia-Pacific, and We groups. seeing and in and rebound I about grown starting business in as one China, that is in year-to-date, healthcare year. Japan improving starting been in mentioned through drive the and double-digit now growth as a Japan growth come areas help we

being But So in healthcare. levels, by not improvements, pre-COVID starting led down yet. -- to some the not again, near also and case see that

drive electric world the -- of seeing around I procedures being of that's improving we're helping the start the growth. one say to dynamics So the some would recovery

Scott Davis

guys. Thank you. luck, Good

Monish Patolawala

Thanks, Scott.

Operator

Thank you.

of line question. Our next the Deane comes with please Capital your RBC Markets, from with question Dray proceed

Deane Dray

Thank everyone. morning you. Good

Monish Patolawala

Deane Hi

Deane Dray

the U.S. I'd and specifics on labor of costs to on please. I'd start lots this look like And new color shortages just more heard benefits headwind labor inflation. opening for initiatives is shortages. hear remarks how globally? We've are about centered highlighted I of some those. cost or comp there, labor and And recruiting, know costs, imagine material higher Mike in among

Monish Patolawala

item global but a it's e, more in us Dean the U.S. say, would I So now it's pronounced right for

that. of of inflation, that buy, very we that we're e, confident, on we're also this But of as a recognize it sure this. are who on spending supply are I And that with through some tems all seeing for make tough tough Mike with by get seeing are through we whether customers the us, environment, are higher cost Dean as demand that that working seeing money environment. we cost want i employees are comes well is more goods we the will overtime. also said, to So tirelessly to our outsource as the mentioned we driven cost, inflation demand labor XM delivering we But is through as manufacturing do cost which in well have, hard

Deane Dray

specifics Any can help kind have with? Do a you cost? of year-over-year labor you us

Monish Patolawala

Bruce back can a to on you and the and go for up basis if you see bridge I I due ask don't productivity. have can very the QX, follow an But to there's just to you it specific. pressure organic volume give XXX points of answer. walk

all have that by we same labor we time, sure the making the words, cost, can Some constraints. production at of higher that but other In that the make. is driven

has of some have been driven is because the fact not by it have changeovers had material more we And that properly. flowing to raw

Deane Dray

if strength a - And line coverage don't the limits we Are litigation, could. it's fast always strength headline as you will of us any hoping your it. could I Both whether insurance have What on insurance see of the specifically is frame we're you us on sight that just coverage. coverage. comment just follow-up was coverage, help settlements. there the Got for the Copaxone the just insurance on and P

Monish Patolawala

Yeah, so have do insurance we coverage.

But various We dialogues some things these keep of providers that them. with insurance multiple our know, we time. take you are working through as having with

do So keep settlements we'll too. when definitely your get costs in, we those

Deane Dray

Okay. Thank you.

Monish Patolawala

Thanks.

Operator

Thank you.

from please of of comes next Our Andrew your line question America, with Obin Bank with question. proceed

Andrew Obin

Good morning.

Mike Roman

Hey, Andrew

Monish Patolawala

Hey, Andrew.

Andrew Obin

Hey, for question and there's maybe Monish. bigger question Mike for picture a

an that. how and I your it leave opportunity re-evaluate has chain shipping just integrated these way current unique the internationally, A, inside -- supply think XM model, yeah, I the at Do constraints: think also and constraints flows are supply I'll unique. your Company internal supply a chain and give fairly fairly to constructed? you is chain

Mike Roman

more production strength our we've in talking year this local about, plans about, what we and and our what to what I remarks, model. was production our for our with delivering our talking a we're strengths for doing customers. them across leveraging And been the nature capabilities -- The world. in in in around the of back factory. We're model to to Yeah, to on changing chain, has focused regional regionally COVID has our Monish idea the just our agile of how our value that in us strategy close wheels one the deal was we're it's interruption as come allowed as customers be about prepared through XM Monish Andrew, local, we of that strengths building fundamental in would the the this say talked supply

streams we say our take have lean we built improve to see -- visibility on, say, getting always look cycle our would have, new the times we are at that would how we opportunities how into be So and I so lot and based I strategies we how and a serve flexibility in. improving efficient on. value do to more do better of we customers, evaluating

So to So that the make where those that how place improving foundation do strengths operational It's I efficiency? the have ahead. think and challenges. to changes. always think And on as model I do we we better? do is building performance, we been with. has the it's leave served we're we respond great well How I go that's looking better drive I'd -- at you us

Andrew Obin

but you, What's the what's follow-up your best I COVID the Thank a question. for likely U.S.? electric next, the trajectory Mike. months? And guess it, missed just say on procedures, in if apologize falling cases most over with procedures I likely sort of let's X

Monish Patolawala

think So Andrew, up countries the lower September was, industry for a We we ended a ended at of I to month -- at of end the XX% cases. in course, forecasted. we up quarter, that's as think was closely. many spike tougher COVID very one, Part watching -- was I a XX% it originally keep saw of that the

XX% they are at lot and procedures end slowed a of are to but the around that what the look into fourth day. the industry's to the quarter. down it's we quarter reason elective the think I we and is the then should XXXX The range discussion fourth as back industries, belief, does Our these time-sensitive in believe, XX% like? the beyond have of And been and bigger stabilize hopefully get we elective, that the get still

added in from have are or countries far prepared with there's equipped better now, go the have see cases all how perspective. -- capacities out play that's COVID I both also and But So to right a we to deal so see -- this. to more what think hospitals see we'll

of in up it. cases XXXX. think the hope back but come our how we elective is world, levels different that, will in that's So happens, see procedures to on XXXX parts depend I it When

Andrew Obin

Do a you in catch-up see 'XX? of the cumulative possibility

Monish Patolawala

our volume knows? I think not that's the as the to patient have preparedness as I right? depend -- hospital From their the surgeries well hospital come end, have rather But basically debate, think get Who done. the going that's than on would into Well, to that's readiness we volume. to

say have, a have good we'll problem see but I think would I will be So, it to happens. to what

Andrew Obin

Thanks lot, a Good guys. luck.

Everyone

Thanks you. to

Operator

you. Thank

line with your with DeBlase Our Bank. next question. from question the Nicole of comes proceed Please Deutsche

Nicole DeBlase

morning, Good Thanks. guys. Yes.

Everyone

Nicole. Hi

Nicole DeBlase

what I supply just you dig wanted from a guys are to seeing chain more. perspective into a bit

green that the could meeting changes possibility you headwinds a talk last the there's is at any or bottlenecks peaks? shoots there here issues if that chain have there is sense update. that any key in So quarter's And about supply versus all

Mike Roman

to back While of multiple is Nicole, a I it, it convergence factors. really go

a strong we The got And so strong little see to continue demand pull apart bit. think you've those demand. will to

has to forward. through on the We've end labor are chains year and impacting impacted then also are production, raw that's pressure particular. challenges going for semiconductor interrupted we in going supply with getting shortages, the pandemic So were went shortages Those events us better. our the markets put material some supply. impacted as which seen weather And we extreme

into supply are were forward, issues the Can broadly we one and of these continue But of optimistic, better difficult we're as are on that congestion you normal logistics chains predict will as to -- improving. we patterns some each of for eye do the play each be we more keep watching we sign duration to have improvements. go we hopeful each we chain well. we the or factors of supply go with they do going to we supply logistics step-by-step. other back facing that So is estimate are move to as in a raw we for as expect And how to see in getting to XXXX, It's improve. material are looking we and these an are that us good things see that of and that disruptions aspects get carefully to the improvements

Monish Patolawala

watching material, have the tower set telling it port hours. of whether control up, whether us is been is so customers, it it shutdown few has that raw Nicole, suppliers that congestion, a we maybe also we're constantly airports, whether is

our faster that adjusting in factories that supply sure then that needed. as so thing keep as customer is products towers just customer moving customer another as and that's other well demand big keep demand variable watching we we we doing changings pretty now. new why that's control itself his to So right demand make And have

Nicole DeBlase

Mike. Monish, we've I expectations kind guess thanks, Got for within helpful. procedures it. healthcare. you That discussed elective XQ, of Thanks, about And kind then as segment, of the was by think

can math. guys think be in still on year-on-year? bit going there down they expectation You with a consumer a both industrial, could little that is T&E or businesses talked I safety are those what's tougher grow Is But quarter. about risk the and and the facing organically comps fourth

Monish Patolawala

year So squarely. most I has business that is is and impacted auto industry, shortages two.One just the industry with would the electronics semiconductor the Electronics, business would on that start by hits the I Transportation comps say second facing a and latest builds are they're forecast from where that down the we to is, be. year-over-year last also, the XX% electronics auto auto build the There's at IHS as look in on side. expected

So it's electronics, on all year-over-year whether them, consumer be of supposed basis. to a are down TVs, tablets,

the hard I think business, make whatever shortages semiconductor it that where we'll and team have to if they're the do volumes fighting going and takes Ashish but to sure -- are in they're see for up last customers XX that land strong to but a see team consumer, Jeff what are done what year, very they On and that's served. months. have comp also facing right, you you're first the can from

growth. strong seen have We

in that posted have in We command holiday it the etc., start question business watching. are where third was The that is seen platforms Filtrete season. early Our quarter. stationary our keep or notes, whether continues the the thing to good growth all good is have we'll saw a and

Nicole DeBlase

Thanks. I'll pass it it. Got on.

Monish Patolawala

Thanks.

Operator

with question And of from next Morgan. your our the Please question. JP you. comes line Thank with Thank Steve Tusa you. proceed

Steve Tusa

morning. Good Hi.

Monish Patolawala

Hi Steve.

Steve Tusa

Hey, guys.

Back -- price quarter? something of back what of like I'm on like is other the was the parts a kind growth. and like lot and costs out I the I bit moving deal because that because underlying, with. year-over-year restructuring is little But think on that kind savings then just here. is then and on what costs this if negative So things underlying to just What temporary this I bit. there's inflation the the a revenue that of that leverage into like out getting a mask if costs Or underlying it XX:XX:XX] leverage X%? of and [inaudible quarter you have this, positive obviously the negative But have supply -- little then

Monish Patolawala

very think and you then the the X because it's what's me raw give we give You're tell litigation chain, the ultimately supply at look Steve, breaking from up I unfair that the productivity your everything I but underlying productivity got it's way the and leverage. in when Because it on way price look what given I out that everything for think little a a out. offset perspective. the as costs. hard a out I at think that you a you hard and don't I by volume that's tell did me you that bit, leverage X look you That's is just question to was it's versus as at X.X% from stuff for growth, as our growth it. And Steve, and and I us hurt we bridge -- you but would have restructuring it increased global just then to I X out tell can you, see would productivity you good for would be all-in, Xing little we well I it's organic leverage, see basis. me volume

Steve Tusa

guess, you these is business incremental reason core in XX% wouldn't why is I able convert be 'XX? Right. still a guess, business? to normally assuming there I stabilize, things this a margin more

Monish Patolawala

I would it's Steve, a so, I say gain. think

equal. being go You back thing have all s to to

Monish Patolawala

XX XXXX. Yes, come But does trends I XX% it I supply that and don't down chain leverage to business a it's see what like look to will in think change.

Mike We term, as just can continue supply peers margin us, and has and think we grow get mentioned, chain XXXX. said strong about have not cash. but well other as I of seen very into said, But our to macro. we expansion go have we the You've people long have confident can many as can are constraints I

to just those, all see uncertain have time it's a we'll it's just -- chain self supply -- plays So itself. I short how think that

Steve Tusa

Yeah, appreciated. Yeah. very

Okay. Thanks. Thanks [inaudible XX:XX:XX]

Operator

comes of Suisse. Credit with our And with the John question. Please next you. Thank proceed your from line question Walsh

John Walsh

Hi, good morning.

Bruce Jermeland

Hey John.

Everyone

John. Hi,

John Walsh

on higher XX% here. savings is XXX How million savings, of the in taken I program is and track, of about you now by what up that the think obviously do we -- do Maybe that's the actions, million the was numbers the prior wanted -- we confirm conversion on just Costs, payback XXX new first to question think here. I track,,but an on on around the restructuring,you that just then those? used and mean, the mean term you've it -- on how like you've

Monish Patolawala

this, What we So and -- XXX was XXX program by XXX. going prepared between in are updating to I'm be of program reiterate the expect spent and our XQ from the benefits end XXX to XXX XXX and in have to was to said to my have what somewhere I'll cost the to million looked we I of remarks initiated and be between -- somewhere to 'XX. XXX we largely and year-to-date XXX against XXX that XXX XXX

On done the the balance range or XXX -- the half the already shown that we're time in all quarter. 'XX. would in of the the set this show higher by the up taken. year of it will in actions XXX, for between at benefit show we fourth that's had are but with And we up 'XX we with ourselves up side, that to see the end XXX and XXX have We

Bruce Jermeland

said Monish to one want just I charges million thing. of had clarify -- we've John Hey, year-to-date $XXX

Monish Patolawala

sorry, Charges,

Bruce Jermeland

and year XXX That's this last in year? actually QX year-to-date XXX a million

Monish Patolawala

Yeah.

to-date. Program Sorry.

Bruce Jermeland

Yeah.

Monish Patolawala

we our And and don't restructuring that's in all remove John, as you results the charges know, included numbers report. from we

So for adjust we don't that.

John Walsh

there. shortages, follow-up help things other kind there either majeur, Yes, as just semi we're the impact a [Indiscernible] of chain? your around tracking and from for then understand assuming all the like you're bit Can to seeing I supply the extra little think what Thank semi and probably you XM, details And that was supply us following we ancillary supply etc.. propylene here, also you a no. some chains mentioned of more I'm you some might part of maybe lot But of just questions first there etc. maybe be day-to-day. some that hurricanes chain in

Monish Patolawala

Yeah.

So --

John Walsh

How long might the duration be. of that

Monish Patolawala

perfectly seeing crude, we're going. where accrued the polypropylene mentioned see of are all They're of better ones ethylene videos. seeing Many companies to So not the you can price these is resins, of but crude the inflation. I tied

happened. So say the impacted global all on of for the word house. that September. again, to from down T would And way supply back all hurricane there's demand the the all pandemic there, the Mike then that pressure in it But derivatives. further Hurricane but have in got hey a chemical for February, convergence, then the We've on put have I that's the chains certain the equation but put material that February. bit jump if the and material would, has come happened in need buy across the we harder in goes pressures my memory only on for makes Ida the to And And increased I some all saw it's globe. it's the ethylene, polypropylene -- it flow seen just a and actually is you of locations. demand-supply right, And that driven it also little used August. product in side the together,

John Walsh

I taking questions. the appreciate you Great.

Monish Patolawala

Thanks, John.

Mike Roman

Thanks John.

Operator

Thank you.

next Our Andrew from line with proceed with comes of the your question. Kaplowitz question Citigroup. Please

Andrew Kaplowitz

guys. morning, good Hey,

Everyone

Morning.

Andrew Kaplowitz

update an deployment you're on Maybe point. at how this about thinking cash

enough do priorities you've I better start you languish stock be think far what if instance, salary point with at what understand point we up equipped deal at to organic at all you integration and gone might your continues to they ramp think make your into a for that do larger [Indiscernible], purchases investments. But XM again? a

Monish Patolawala

Andy, same capital allocation the going just Again, I -- that apologies, page. our priorities just just on everyone's and so my am I to reiterate

afraid see it's investing productivity, in can done always priority and this and first that. $X to of still to We're it's which $X.X We but to constraints, spend just with Our in supply is growth, investing X.X, do XXXX, organic. believe continuing going not sustainability. long-term in 'XX, to keep is see, capital. capital, down in that X.X in return, go you to but the We growth, as some to year, deploy that best so the chain we're best were our We've going billion office the use we

in had is but sustainability the XX organic billion to piece over on for second priority, second improve efforts. investment. dollars be front-end Dividend As important the going Mike early we so the announced spend it's that's year, to a our loaded, our announced for years, our also -- next shareholders. That's

we that clearly are focused priority a that's on. So

target time, priority to that business. etc. ideas capability, that integrating our can are using employee our you're Acelity of it's believe and pipeline target doing is At capability, get we add third Our integrating and our Acelity shareholders value when strengths our add is and we job to we very the of value our we same tons by time, the by see our execute the material have the global base some same a right team's too, which we into a believe can we'll science we a things M&A, we that that we brand, at have, nice that, that we the have that

third pipeline. and an And have our a one, share that's So we the buyback. then last active always

year. which did leverage, at the and gives we've from billion to optionality. But X.X. a optionality. for price and You've gives point, we of I stock look perspective. It debt that last a we it too. much and I will look At for just strength financial XXX, Overall, cash lot lot the me would and how at a that seen, now We the of of net at strength X.X approximately financial clearly done is that's EBITDA priority save XM deployment generate, capital on depending us

to deploy platforms even hesitate we've of the are some see, opportunities all growth So capital as because, that of what we GDP them won't depending talked mentioned, about, platform. plus Mike we on

an that's keep So love in. to area we investing would

Andrew Kaplowitz

you Healthcare Could margin. give [Indiscernible] us terms what's in of on little on in a color sets more your Many going business

your doing margin versus performance relatively is year-over-year,at other think segments. least I

care the integration thinking a how So businesses trajectory such how mix Is moving your helping? in much that's And as of forward? oral it are you helping business is margin margin. outperforming Saudi about that

Monish Patolawala

Yeah.

I that So look Andy. helps, if also at for healthcare, EBITDA,

and and Care factories. the facility. low business, MSD nicely there very The if exclude was decline, and us definitely would the think snapback you team [inaudible procedures, approximately EBITDA on and continuing find going in I The care nice second Oral the but the the quarter year-to-date, really XX:XX:XX] on business margin an a job our to it with and leverage have respirator say volume on we volume, we points continuing all impacted MSD's increased We has synergies wound done most the in it's too. quarter. between the team with to of the the elective us and existing XX% that around helped. basis in Acelity or business business margin. integration by helps a grew disposable care the was basis. quarter do third performance facility can drive It we're is are XX a Acelity I helps well, third in wound cross-selling

on growth improvement, to progress. happy So we most more the we in that. always drive continuous and But spirit are very very continuing of can in there's are our do to focused do team with margin and

Andrew Kaplowitz

Appreciate in Monish.

Operator

you. Thank

with Our the comes line question Sachs. Ritchie of next question. Goldman with proceed from Joe your Please

Joe Ritchie

to me Thanks you. for everybody in Thank fitting

Everyone

[Indiscernible]

Joe Ritchie

then do Maybe the you just peak Monish, your being of price think talked we're impact negative,the that costs? to I'm I see at that, to curious, through business while.It's the portion re-price business for XXX contracts. a haven't cost going And I you of just in question points discussion, basis of is some my what this covered your price guys to tougher on you have environment? about that follow-on on pain cost price a rare equation is,

Monish Patolawala

your So price. first have to answer on made question, we progress

to we that, year, points because very us to driving quarter quarter price We you the you to XX saw take to hold. progress these have. across had the we've through will continue actions channels, Joe, XXX. going price we You should approach that as basis said see third from continue fourth take methodical in And the the taken geographies multiple recall, a we and see this if the in ramp

have anybody is seen that as I faster we think than the issue coming thought. big inflation

knows even what neutral has continuously the and was to to drive But I think the it price is asked price goal it'll helps team to to the drive so all. how of done our And that the to drives also of get can all that But team question earlier, increases perspective. increase price, a depend from lot price a on how inflation team innovation goes.

put So hard. pretty all together that it teams working

Joe Ritchie

on able some contract,in to reprice to of of reprice And is kind the in being a us benchmark the contract,you the your on little some have portion tougher for what bit environment? question

Monish Patolawala

Listen, price increases our with all Yes. work we customers.

we many we some spec OEM. are get In businesses through. directly with And to of We with work XX worked have the these we contracts our XXX that we then cases, have in some cases contracts in customers, longer that days a notice.

that this. we look that's all how together, put at So

to quote. it's think a a give have number So pick I because, me quote day contract on hard contract you the and you'll for dollar and one of different

Joe Ritchie

it. Got

you Thank very Okay. much.

Monish Patolawala

too Thanks

Mike Roman

Thanks too

Operator

[Operator Instructions]

Bruce Jermeland

well cash in our up, flow. To performing is good strong wrap and team environment, challenging a growth, broad-based delivering margins,

Thank us. drive and and attractive chain creating supply our for value investing shareholders. growth for managing constraints, in market our on focused joining you trends stay will We greater to customers

Operator

Ladies disconnect and gentlemen, for that that call conference does line. please you ask We conclude the thank Thank participation your for today. you your and you.

3M (MMM) 26 Oct 212021 Q3 Earnings call transcript