3M Reports Third-Quarter Results; Raises Full-Year 2024 Earnings Guidance
3M (NYSE: MMM) reported strong third-quarter results for 2024, with sales of $6.3 billion, up 0.4% year-over-year. The company's GAAP EPS from continuing operations increased by 154% to $2.48, while adjusted EPS rose 18% to $1.98. 3M's adjusted operating income margin improved by 1.4 percentage points to 23.0%. Despite a cash outflow of $1.8 billion from operations due to significant litigation costs, the company generated $1.5 billion in adjusted free cash flow.
Based on strong year-to-date performance, 3M has raised its full-year 2024 adjusted EPS guidance to a range of $7.20 to $7.30, up from the previous forecast of $7.00 to $7.30. The company also updated its outlook for adjusted total sales growth to approximately 1% and adjusted organic sales growth to about 1% for the full year.
3M (NYSE: MMM) ha riportato risultati positivi per il terzo trimestre del 2024, con vendite di 6,3 miliardi di dollari, in aumento dello 0,4% rispetto all'anno precedente. L'EPS GAAP delle operazioni continue dell'azienda è aumentato del 154% a 2,48 dollari, mentre l'EPS rettificato è salito del 18% a 1,98 dollari. Il margine di reddito operativo rettificato di 3M è migliorato di 1,4 punti percentuali, raggiungendo il 23,0%. Nonostante un deflusso di cassa di 1,8 miliardi di dollari dalle operazioni a causa di significativi costi legali, l'azienda ha generato 1,5 miliardi di dollari di flusso di cassa libero rettificato.
Sulla base delle solide performance dall'inizio dell'anno, 3M ha innalzato le previsioni per l'EPS rettificato dell'intero anno 2024 a un intervallo di 7,20-7,30 dollari, rispetto alla previsione precedente di 7,00-7,30 dollari. L'azienda ha anche aggiornato le sue prospettive per la crescita delle vendite totali rettificate a circa l'1% e la crescita delle vendite organiche rettificate a circa l'1% per l'intero anno.
3M (NYSE: MMM) reportó resultados sólidos para el tercer trimestre de 2024, con ventas de 6.3 mil millones de dólares, un aumento del 0.4% en comparación con el año anterior. El EPS GAAP de las operaciones continuas de la compañía aumentó un 154% a 2.48 dólares, mientras que el EPS ajustado subió un 18% a 1.98 dólares. El margen de ingreso operativo ajustado de 3M mejoró en 1.4 puntos porcentuales, alcanzando el 23.0%. A pesar de un salida de efectivo de 1.8 mil millones de dólares de las operaciones debido a significativos costos legales, la empresa generó 1.5 mil millones de dólares en flujo de caja libre ajustado.
Basándose en un sólido desempeño desde el inicio del año, 3M ha elevado su guía de EPS ajustados para todo el año 2024 a un rango de 7.20 a 7.30 dólares, en comparación con la previsión anterior de 7.00 a 7.30 dólares. La compañía también actualizó su perspectiva de crecimiento de ventas totales ajustadas a aproximadamente un 1% y el crecimiento de las ventas orgánicas ajustadas a cerca de un 1% para todo el año.
3M (NYSE: MMM)은 2024년 3분기 강력한 실적을 보고했으며, 매출 63억 달러로 전년 대비 0.4% 증가했습니다. 회사의 계속 운영을 통한 GAAP EPS는 154% 증가하여 2.48달러에 이르렀고, 조정된 EPS는 18% 상승하여 1.98달러에 달했습니다. 3M의 조정된 운영 소득률은 1.4%포인트 개선되어 23.0%에 도달했습니다. significant litigation costs로 인한 1.8억 달러의 운영에서의 현금 유출에도 불구하고, 회사는 15억 달러의 조정된 자유 현금 흐름을 창출했습니다.
연초부터의 강력한 실적을 기반으로 3M은 2024년 전체 연도 조정된 EPS 지침을 7.20~7.30달러로 상향 조정했으며, 이전 예측의 7.00~7.30달러에서 상향 조정되었습니다. 회사는 전체 연도의 조정된 총 매출 성장 전망을 약 1%로, 조정된 유기적 매출 성장 전망을 약 1%로 업데이트했습니다.
3M (NYSE: MMM) a annoncé de bons résultats pour le troisième trimestre 2024, avec des ventes de 6,3 milliards de dollars, en hausse de 0,4 % par rapport à l'année précédente. Le BPA GAAP des opérations continues de l'entreprise a augmenté de 154 % pour atteindre 2,48 dollars, tandis que le BPA ajusté a progressé de 18 % pour atteindre 1,98 dollars. La marge de revenu opérationnel ajustée de 3M s'est améliorée de 1,4 point de pourcentage pour atteindre 23,0 %. Malgré un débit de trésorerie de 1,8 milliard de dollars provenant des opérations en raison de coûts de litiges significatifs, l'entreprise a généré 1,5 milliard de dollars de flux de trésorerie disponibles ajustés.
Sur la base d'une performance solide depuis le début de l'année, 3M a augmenté ses prévisions de BPA ajusté pour l'année 2024 dans une fourchette de 7,20 à 7,30 dollars, contre une prévision précédente de 7,00 à 7,30 dollars. L'entreprise a également mis à jour ses perspectives de croissance des ventes totales ajustées à environ 1 % et de croissance des ventes organiques ajustées à environ 1 % pour l'année entière.
3M (NYSE: MMM) berichtete für das dritte Quartal 2024 über starke Ergebnisse, mit Umsätzen von 6,3 Milliarden US-Dollar, was einem Anstieg von 0,4 % im Vergleich zum Vorjahr entspricht. Das GAAP EPS aus fortgeführten Betrieben des Unternehmens stieg um 154 % auf 2,48 US-Dollar, während das bereinigte EPS um 18 % auf 1,98 US-Dollar zunahm. Die bereinigte operative Ertragsmarge von 3M verbesserte sich um 1,4 Prozentpunkte auf 23,0 %. Trotz eines Cashflow-Abflusses von 1,8 Milliarden US-Dollar aus den Betrieben aufgrund erheblicher Prozesskosten generierte das Unternehmen 1,5 Milliarden US-Dollar an bereinigtem freien Cashflow.
Basierend auf der starken Leistung im laufenden Jahr hat 3M seine Prognose für das bereinigte EPS für das gesamte Jahr 2024 angehoben und liegt nun im Bereich von 7,20 bis 7,30 US-Dollar, gegenüber der vorherigen Prognose von 7,00 bis 7,30 US-Dollar. Das Unternehmen aktualisierte auch seinen Ausblick für das bereinigte Gesamtumsatzwachstum auf etwa 1 % und das bereinigte organische Umsatzwachstum auf etwa 1 % für das gesamte Jahr.
- GAAP EPS from continuing operations increased 154% year-over-year to $2.48
- Adjusted EPS rose 18% year-over-year to $1.98
- Adjusted operating income margin improved by 1.4 percentage points to 23.0%
- Generated $1.5 billion in adjusted free cash flow
- Raised full-year 2024 adjusted EPS guidance to $7.20-$7.30 from $7.00-$7.30
- Cash outflow of $1.8 billion from operations due to significant litigation costs
- Organic sales decreased 0.1% year-over-year
- Adjusted organic sales growth outlook for 2024 lowered to ~1% from previous flat to +2%
Insights
3M's Q3 2024 results show resilience and operational improvement. The 18% YoY increase in adjusted EPS to
The company's ability to generate
The raised full-year 2024 adjusted EPS guidance to
Overall, 3M's focus on operational excellence is yielding results, but sustained organic growth remains a key area to monitor for long-term value creation.
The Q3 results highlight 3M's ongoing legal challenges and their financial impact. The
The
The
- Sales of
$6.3 billion 0.4% YoY - Adjusted sales of
$6.1 billion 1.0% YoY - GAAP EPS from continuing operations of
$2.48 154% YoY - Adjusted EPS from continuing operations of
$1.98 18% YoY - Operating cash flow of
$(1.8) billion $1.5 billion - Updating full-year 2024 adjusted EPS from continuing operations to
$7.20 $7.30 $7.00 $7.30
"The 3M team delivered another quarter of strong operational execution, resulting in a double-digit increase in adjusted earnings along with solid adjusted free cash flow generation," said William Brown, 3M Chief Executive Officer. "Our ongoing execution positions us well to deliver a strong finish to the year. I am confident that our work on advancing our three priorities – organic growth, operational excellence, and capital deployment – will deliver long-term value creation for our shareholders."
Third-Quarter Highlights:
Q3 2024 | Q3 2023 | |||||||
GAAP EPS from continuing operations (GAAP EPS) | $ 2.48 | $ (4.56) | ||||||
Special items: | ||||||||
Net costs for significant litigation | 0.51 | 6.13 | ||||||
(Increase) decrease in value of Solventum ownership | (1.05) | — | ||||||
Other special items, net | 0.04 | 0.11 | ||||||
Adjusted EPS from continuing operations (Adjusted EPS) | $ 1.98 | $ 1.68 | ||||||
Memo: | ||||||||
GAAP operating income margin | 20.9 % | (49.4) % | ||||||
Adjusted operating income margin | 23.0 % | 21.6 % |
- GAAP EPS of
$2.48 20.9% . - Adjusted EPS of
$1.98 18% year-on-year. - Adjusted operating income margin of
23.0% , an increase of 1.4 percentage points year-on-year.
GAAP | Adjusted (Non-GAAP) | |||||||
Net sales (Millions) | ||||||||
Sales change | ||||||||
Total sales | 0.4 % | 1.5 % | ||||||
Components of sales change: | ||||||||
Organic sales1 | (0.1) % | 1.0 % | ||||||
Acquisitions/divestitures | 0.8 % | 0.9 % | ||||||
Translation | (0.3) % | (0.4) % | ||||||
Adjusted sales excludes manufactured PFAS products. | ||||||||
1Above adjusted organic sales increase includes a 100 basis point headwind from product portfolio initiatives and exit | ||||||||
- Sales of
$6.3 billion 0.4% year-on-year, with organic sales down0.1% year-on-year. - Adjusted sales of
$6.1 billion 1.5% year-on-year with adjusted organic sales up1.0% year-on-year. - 3M returned
$1.1 billion - Cash from operations of
$(1.8) billion $3.6 billion - Adjusted free cash flow of
$1.5 billion
This document includes reference to certain non-GAAP measures. See the "Supplemental Financial Information Non-GAAP Measures" section for applicable information.
Updating Full-Year 2024 Earnings Outlook
As a result of our strong year-to-date performance the company is raising its full-year adjusted earnings expectations. The 2024 earnings outlook below reflects the continuing operations of 3M.
Prior 2024 forecast2 | Current 2024 forecast2 | |||||||
Adjusted total sales growth | ( | ~ | ||||||
Adjusted organic sales growth | flat to + | ~ | ||||||
Adjusted EPS |
2As further discussed at 6 within the "Supplemental Financial Information Non-GAAP Measures" sections, 3M cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP financial measures and, therefore, does not provide them on a forward-looking basis reflecting these items. |
Conference Call
3M will conduct an investor teleconference at 9 a.m. EDT (8 a.m. CDT) today. Investors can access this conference via the following:
- Live webcast at https://investors.3M.com
- Webcast replay at https://investors.3m.com/financials/quarterly-earnings
Consolidated Financial Statements and Supplemental Financial Information Non-GAAP Measures
View the Financial Statement Information on 3M's website: https://investors.3m.com/financials/quarterly-earnings
Forward-Looking Statements
This news release contains forward-looking statements. You can identify these statements by the use of words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "will," "should," "could," "would," "forecast" and other words and terms of similar meaning. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company's control, including inflation, recession, military conflicts, and natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) foreign currency exchange rates and fluctuations in those rates; (3) liabilities and the outcome of contingencies related to certain fluorochemicals; known as "PFAS," including liabilities related to claims, lawsuits, and government regulatory proceedings concerning various PFAS-related products and chemistries, as well as risks related to the Company's plans to exit PFAS manufacturing and discontinue use of PFAS across its product portfolio; (4) risks related to the class-action settlement to resolve claims by public water suppliers in
About 3M
3M (NYSE: MMM) believes science helps create a brighter world for everyone. By unlocking the power of people, ideas and science to reimagine what's possible, our global team uniquely addresses the opportunities and challenges of our customers, communities, and planet. Learn how we're working to improve lives and make what's next at 3M.com/news.
Please note that the company announces material financial, business and operational information using the 3M investor relations website, SEC filings, press releases, public conference calls and webcasts. The company also uses the 3M News Center and social media to communicate with our customers and the public about the company, products and services and other matters. It is possible that the information 3M posts on the News Center and social media could be deemed to be material information. Therefore, the company encourages investors, the media and others interested in 3M to review the information posted on 3M's news center and the social media channels such as @3M or @3MNews.
Contacts
3M
Investor Contacts:
Bruce Jermeland, 651-733-1807
or
Diane Farrow, 612-202-2449
or
Eric Herron, 651-233-0043
Media Contact:
Sean Lynch, slynch2@mmm.com
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SOURCE 3M Company
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