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3M(MMM) - 2024 Q2 - Quarterly Results
MMM3M(MMM)2024-07-26 10:35

Earnings Per Share (EPS) - Q2 2024 GAAP EPS from continuing operations is 2.17,up1172.17, up 117% YoY, compared to (12.94) in Q2 2023[1][3] - Adjusted EPS from continuing operations for Q2 2024 is 1.93,up391.93, 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,a391.93, a 39% increase year-over-year[50] - Full-year 2024 adjusted EPS guidance updated to 7.00 to 7.30,fromthepreviousrangeof7.30, from the previous range of 6.80 to 7.30[7]−2024full−yearadjustedearningspershare(non−GAAP)forecastisbetween7.30[7] - 2024 full-year adjusted earnings per share (non-GAAP) forecast is between 7.00 and 7.30[59]−Q12024dilutedearningspersharewas7.30[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−Year2023dilutedlosspersharewas1.71[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]SalesPerformance−Q22024netsalesare6.04[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 6.019billion,up1.16.019 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 6.019billion,reflectinga1.16.019 billion, reflecting a 1.1% increase[46][50] - Adjusted net sales for Q2 2024 are 6.019 billion, up from 5.951billioninQ22023[72]−Full−year2024adjustedtotalsalesgrowthforecastremainsat(0.255.951 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 5.735billion[86]−Full−Year2023netsaleswere5.735 billion[86] - Full-Year 2023 net sales were 24.610 billion[81] - Full-Year 2023 adjusted net sales (non-GAAP) were 23.321billion[103]−Q22023netsaleswere23.321 billion[103] - Q2 2023 net sales were 6.283 billion[92] - Q2 2023 adjusted net sales (non-GAAP) were 5.951billion[92]OperatingIncomeandMargins−AdjustedoperatingincomemarginforQ22024is21.65.951 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 1.303billion,withamarginof21.61.303 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 623million,withamarginof22.6623 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 1.223billion,withanadjustedoperatingmarginof21.31.223 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 4.344billion,withanadjustedoperatingmarginof18.64.344 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 1.021billion,withanadjustedoperatingmarginof17.21.021 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 534millioninthesameperiodlastyear[32]−TransportationandElectronicssegmentoperatingincomewas534 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 410millioninthesameperiodlastyear[32]−Consumersegmentoperatingincomewas410 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 235millioninthesameperiodlastyear[32]−NetsalesfortheSafetyandIndustrialsegmentwere235 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 2,765millioninthesameperiodlastyear[32]−NetsalesfortheTransportationandElectronicssegmentwere2,765 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 2,191millioninthesameperiodlastyear[32]−TransportationandElectronicssegmentGAAPnetsalesforQ22024were2,191 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 1.907billion,showinga2.61.907 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 623million,reflectinga22.6623 million, reflecting a 22.6% increase[46] - Safety and Industrial segment adjusted EBITDA for Q2 2024 is 760 million, up from 746millioninQ22023[71]−TransportationandElectronicssegmentadjustedEBITDAforQ22024is746 million in Q2 2023[71] - Transportation and Electronics segment adjusted EBITDA for Q2 2024 is 510 million, up from 446millioninQ22023[71]−ConsumersegmentadjustedEBITDAforQ22024is446 million in Q2 2023[71] - Consumer segment adjusted EBITDA for Q2 2024 is 258 million, down from 273millioninQ22023[71]CashFlowandFinancialPosition−OperatingcashflowforQ22024is273 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 1.2billion[3][5]−AdjustedfreecashflowforQ22024is1.2 billion[3][5] - Adjusted free cash flow for Q2 2024 is 1.165 billion, down from 1.463billioninQ22023[69]−Netcashprovidedbyinvestingactivitieswas1.463 billion in Q2 2023[69] - Net cash provided by investing activities was (856) million, compared to (619)millioninthepreviousperiod[22]−Netcashprovidedbyfinancingactivitieswas(619) million in the previous period[22] - Net cash provided by financing activities was 3,263 million, compared to (1,519)millioninthepreviousperiod[22]−NetdebtasofJune30,2024is(1,519) million in the previous period[22] - Net debt as of June 30, 2024 is 2.711 billion, down from 10.230billionattheendof2023[78]AdjustedEBITDA−AdjustedEBITDAforQ22024is10.230 billion at the end of 2023[78] Adjusted EBITDA - Adjusted EBITDA for Q2 2024 is 1.576 billion, up from 1.301billioninQ22023[71]−AdjustedEBITDAmarginforQ22024is26.21.301 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 6.841billioninQ22023[69]−TotalCompanyadjustednetincome(non−GAAP)forQ22024was6.841 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 705million[81]−Q12024adjustednetincomefromcontinuingoperationsattributableto3M(non−GAAP)was705 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 8.402billion[81]−Full−Year2023adjustednetincomefromcontinuingoperationsattributableto3M(non−GAAP)was8.402 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 428million,comparedto428 million, compared to 129 million in Q2 2023[109] - Total payments for significant litigation in the first six months of 2024 were approximately 799million,comparedto799 million, compared to 202 million in the same period of 2023[109] - Divestiture costs in Q2 2024 were approximately 58million,comparedto58 million, compared to 94 million in Q2 2023[110] - Total divestiture costs in the first six months of 2024 were approximately 192million,comparedto192 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 2million,comparedto2 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 193million,comparedto193 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 2million,comparedto2 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]