![Results of operations and financial condition - form 8-k](https://www.moneycontroller.it/upload/aziende/3m-company_20210802123908.png)
Q3 2023
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Q3 2022
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GAAP earnings (loss) per share | $ | (3.74) | $ | 6.77 |
Special items: | ||||
Impact of Combat Arms Earplug settlement
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5.80 | - | ||
Other net costs for significant litigation
|
0.33 | 0.37 | ||
Other special items, net
|
0.29 | (4.54) | ||
Adjusted earnings per share (EPS)
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$ | 2.68 | $ | 2.60 |
Memo: | ||||
GAAP operating income (loss) margin | (31.9) | % | 48.2 | % |
Adjusted operating income margin | 23.2 | % | 21.6 | % |
GAAP | Adjusted (Non-GAAP) | |
Net sales (Millions) | $8,312 | $8,020 |
Sales change
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Total sales | (3.6)% | (3.0)% |
Components of sales change: | ||
Organic sales1
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(3.7)% | (3.1)% |
Acquisitions/divestitures
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(0.5)% | (0.5)% |
Translation
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0.6% | 0.6% |
Adjusted sales excludes manufactured PFAS products. | ||
1Above adjusted organic sales decline includes a 1.7 percentage point headwind from the decline in disposable respirator demand, along with the 2022 exit of Russia.
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Three months ended September 30, |
Nine months ended September 30, |
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2023 | 2022 | 2023 | 2022 | |||||
Net sales | $ | 8,312 | $ | 8,619 | $ | 24,668 | $ | 26,150 |
Operating expenses | ||||||||
Cost of sales | 4,580 | 4,728 | 13,799 | 14,647 | ||||
Selling, general and administrative expenses | 5,992 | 1,998 | 19,901 | 6,903 | ||||
Research, development and related expenses | 430 | 461 | 1,375 | 1,417 | ||||
(Gain) loss on business divestitures | (36) | (2,724) | (36) | (2,724) | ||||
Total operating expenses | 10,966 | 4,463 | 35,039 | 20,243 | ||||
Operating income (loss) | (2,654) | 4,156 | (10,371) | 5,907 | ||||
Other expense (income), net | 200 | 24 | 317 | 112 | ||||
Income (loss) before income taxes | (2,854) | 4,132 | (10,688) | 5,795 | ||||
Provision (benefit) for income taxes | (781) | 271 | (2,755) | 550 | ||||
Income (loss) of consolidated group | (2,073) | 3,861 | (7,933) | 5,245 | ||||
Income (loss) from unconsolidated subsidiaries, net of taxes | 2 | 2 | 7 | 3 | ||||
Net income (loss) including noncontrolling interest | (2,071) | 3,863 | (7,926) | 5,248 | ||||
Less: Net income (loss) attributable to noncontrolling interest | 4 | 4 | 14 | 12 | ||||
Net income (loss) attributable to 3M | $ | (2,075) | $ | 3,859 | $ | (7,940) | $ | 5,236 |
Weighted average 3M common shares outstanding - basic | 554.3 | 568.8 | 553.7 | 570.7 | ||||
Earnings (loss) per share attributable to 3M common shareholders - basic | $ | (3.74) | $ | 6.79 | $ | (14.34) | $ | 9.18 |
Weighted average 3M common shares outstanding - diluted | 554.3 | 570.0 | 553.7 | 572.6 | ||||
Earnings (loss) per share attributable to 3M common shareholders - diluted | $ | (3.74) | $ | 6.77 | $ | (14.34) | $ | 9.15 |
September 30, 2023 |
December 31, 2022 |
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ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ | 5,140 | $ | 3,655 |
Marketable securities - current | 73 | 238 | ||
Accounts receivable - net | 4,852 | 4,532 | ||
Inventories | 5,065 | 5,372 | ||
Prepaids | 578 | 435 | ||
Other current assets | 490 | 456 | ||
Total current assets | 16,198 | 14,688 | ||
Property, plant and equipment - net | 9,004 | 9,178 | ||
Operating lease right of use assets | 782 | 829 | ||
Goodwill and intangible assets - net | 17,045 | 17,489 | ||
Other assets | 6,592 | 4,271 | ||
Total assets | $ | 49,621 | $ | 46,455 |
LIABILITIES AND EQUITY | ||||
Current liabilities | ||||
Short-term borrowings and current portion of long-term debt | $ | 3,137 | $ | 1,938 |
Accounts payable | 3,104 | 3,183 | ||
Accrued payroll | 905 | 692 | ||
Accrued income taxes | 220 | 259 | ||
Operating lease liabilities - current | 234 | 261 | ||
Other current liabilities | 7,866 | 3,190 | ||
Total current liabilities | 15,466 | 9,523 | ||
Long-term debt | 12,876 | 14,001 | ||
Other liabilities | 16,548 | 8,161 | ||
Total liabilities | 44,890 | 31,685 | ||
Total equity | 4,731 | 14,770 | ||
Shares outstanding | ||||
September 30, 2023: 552,317,038
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December 31, 2022: 549,245,105
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Total liabilities and equity | $ | 49,621 | $ | 46,455 |
Nine months ended September 30, | ||||
2023 | 2022 | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 4,694 | $ | 3,669 |
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (1,257) | (1,243) | ||
Purchases and proceeds from sale or maturities of marketable securities and investments - net | 149 | 28 | ||
Proceeds from sale of businesses, net of cash sold | 60 | 13 | ||
Cash payment from Food Safety business split-off, net of divested cash | - | 478 | ||
Other investing activities | 142 | 66 | ||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (906) | (658) | ||
Cash flows from financing activities: | ||||
Change in debt | 62 | (838) | ||
Purchases of treasury stock | (31) | (928) | ||
Proceeds from issuances of treasury stock pursuant to stock option and benefit plans | 245 | 310 | ||
Dividends paid to shareholders | (2,483) | (2,550) | ||
Other financing activities | (16) | (29) | ||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (2,223) | (4,035) | ||
Effect of exchange rate changes on cash and cash equivalents | (80) | (136) | ||
Net increase (decrease) in cash and cash equivalents | 1,485 | (1,160) | ||
Cash and cash equivalents at beginning of year | 3,655 | 4,564 | ||
Cash and cash equivalents at end of period | $ | 5,140 | $ | 3,404 |
Three months ended September 30, 2023 | ||||||||
Sales Change Analysis By Geographic Area | Americas | Asia Pacific | Europe, Middle East and Africa | Worldwide | ||||
Organic sales | 0.2 | % | (12.4) | % | (1.6) | % | (3.7) | % |
Acquisitions | 0.6 | 0.1 | 0.1 | 0.4 | ||||
Divestitures | (0.7) | (1.0) | (1.2) | (0.9) | ||||
Translation | 0.5 | (2.3) | 6.6 | 0.6 | ||||
Total sales change | 0.6 | % | (15.6) | % | 3.9 | % | (3.6) | % |
Nine months ended September 30, 2023 | ||||||||
Sales Change Analysis By Geographic Area | Americas | Asia Pacific | Europe, Middle East and Africa | Worldwide | ||||
Organic sales | 0.5 | % | (11.9) | % | (2.0) | % | (3.6) | % |
Acquisitions | 0.3 | - | - | 0.2 | ||||
Divestitures | (1.3) | (1.0) | (1.0) | (1.2) | ||||
Translation | (0.1) | (3.9) | 0.6 | (1.1) | ||||
Total sales change | (0.6) | % | (16.8) | % | (2.4) | % | (5.7) | % |
Three months ended September 30, 2023 | ||||||||||
Worldwide Sales Change By Business Segment | Organic sales | Acquisitions | Divestitures | Translation |
Total sales change |
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Safety and Industrial | (5.8) | % | - | % | - | % | 0.9 | % | (4.9) | % |
Transportation and Electronics | (4.1) | 1.4 | (0.4) | 0.1 | (3.0) | |||||
Health Care | 2.4 | - | (3.4) | 0.8 | (0.2) | |||||
Consumer | (7.2) | - | - | 0.5 | (6.7) | |||||
Total Company | (3.7) | 0.4 | (0.9) | 0.6 | (3.6) | |||||
Nine months ended September 30, 2023 | ||||||||||
Worldwide Sales Change By Business Segment | Organic sales | Acquisitions | Divestitures | Translation |
Total sales change |
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Safety and Industrial | (5.5) | % | - | % | - | % | (1.0) | % | (6.5) | % |
Transportation and Electronics | (4.5) | 0.6 | (0.9) | (1.5) | (6.3) | |||||
Health Care | 1.3 | - | (3.9) | (0.9) | (3.5) | |||||
Consumer | (5.4) | - | (0.1) | (0.6) | (6.1) | |||||
Total Company | (3.6) | 0.2 | (1.2) | (1.1) | (5.7) |
BUSINESS SEGMENT INFORMATION |
Three months ended September 30, |
Nine months ended September 30, |
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NET SALES | ||||||||
(Millions) | 2023 | 2022 | 2023 | 2022 | ||||
Safety and Industrial | $ | 2,751 | $ | 2,894 | $ | 8,295 | $ | 8,869 |
Transportation and Electronics | 2,171 | 2,239 | 6,412 | 6,847 | ||||
Health Care | 2,073 | 2,076 | 6,158 | 6,383 | ||||
Consumer | 1,315 | 1,409 | 3,800 | 4,048 | ||||
Corporate and Unallocated | 2 | 1 | 3 | 3 | ||||
Total Company | $ | 8,312 | $ | 8,619 | $ | 24,668 | $ | 26,150 |
BUSINESS SEGMENT INFORMATION |
Three months ended September 30, |
Nine months ended September 30, |
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OPERATING INCOME (LOSS) | ||||||||
(Millions) | 2023 | 2022 | 2023 | 2022 | ||||
Safety and Industrial | $ | 666 | $ | 652 | $ | 1,801 | $ | 572 |
Transportation and Electronics | 389 | 475 | 1,093 | 1,414 | ||||
Health Care | 460 | 450 | 1,231 | 1,387 | ||||
Consumer | 269 | 299 | 683 | 766 | ||||
Total business segment operating income (loss) | 1,784 | 1,876 | 4,808 | 4,139 | ||||
Corporate and Unallocated | ||||||||
Corporate special items: | ||||||||
Net costs for significant litigation | (4,270) | (246) | (14,709) | (812) | ||||
Divestiture costs | (132) | (6) | (359) | (6) | ||||
Gain on business divestitures
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36 | 2,724 | 36 | 2,724 | ||||
Divestiture-related restructuring actions
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- | (41) | - | (41) | ||||
Russia exit (charges) benefits
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- | (109) | 18 | (109) | ||||
Total corporate special items | (4,366) | 2,322 | (15,014) | 1,756 | ||||
Other corporate expense - net | (72) | (42) | (165) | 12 | ||||
Total Corporate and Unallocated | (4,438) | 2,280 | (15,179) | 1,768 | ||||
Total Company operating income (loss) | (2,654) | 4,156 | (10,371) | 5,907 | ||||
Other expense/(income), net | 200 | 24 | 317 | 112 | ||||
Income (loss) before income taxes | $ | (2,854) | $ | 4,132 | $ | (10,688) | $ | 5,795 |
GAAP amounts for which a measure adjusted for special items is also provided: | Reasons 3M believes the measure is useful |
•Net sales (and sales change)
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Considered, in addition to segment operating performance, in evaluating and managing operations; useful in understanding underlying business performance, provides additional transparency to special items
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•Operating income (loss), segment operating income (loss) and operating income (loss) margin
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•Income (loss) before taxes
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•Provision for income taxes and effective tax rate
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•Net income (loss)
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•Earnings (loss) per share
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Additional non-GAAP measures: | |
•Adjusted net cash provided by (used in) operating activities; adjusted purchases of property, plant and equipment (also referred to as adjusted capital expenditures); adjusted free cash flow and adjusted free cash flow conversion
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Used as indicators of strength and ability to generate cash and as indicator of capital deployment; meaningful as measures of performance |
•Adjusted EBITDA and adjusted EBITDA margin
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Considered in evaluating and managing operations; meaningful in analyses of ongoing underlying operating trends |
•Net debt
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Meaningful as indicator of liquidity and measure of capital structure strategy |
Three months ended September 30, 2022 | ||||||||||||||||
(Dollars in millions, except per share amounts) | Net sales | Operating income (loss) | Operating income (loss) margin | Income (loss) before taxes | Provision (benefit) for income taxes | Effective tax rate | Net income (loss) attributable to 3M | Earnings per diluted share | ||||||||
Safety and Industrial | ||||||||||||||||
GAAP amounts | $ | 652 | 22.5 | % | ||||||||||||
Adjustments for special items: | ||||||||||||||||
Net costs for significant litigation | 21 | |||||||||||||||
Total special items | 21 | |||||||||||||||
Adjusted amounts (non-GAAP measures)4
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$ | 673 | 23.2 | % | ||||||||||||
Transportation and Electronics | ||||||||||||||||
GAAP amounts | $ | 2,239 | $ | 475 | 21.2 | % | ||||||||||
Adjustments for special items: | ||||||||||||||||
Manufactured PFAS products | (350) | (65) | ||||||||||||||
Total special items | (350) | (65) | ||||||||||||||
Adjusted amounts (non-GAAP measures)4
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$ | 1,889 | $ | 410 | 21.7 | % | ||||||||||
Total Company | ||||||||||||||||
GAAP amounts | $ | 8,619 | $ | 4,156 | 48.2 | % | $ | 4,132 | $ | 271 | 6.6 | % | $ | 3,859 | $ | 6.77 |
Adjustments for special items: | ||||||||||||||||
Net costs for significant litigation | - | 267 | 267 | 57 | 210 | 0.37 | ||||||||||
Manufactured PFAS products | (350) | (65) | (65) | (16) | (49) | (0.09) | ||||||||||
Gain on business divestitures | - | (2,724) | (2,724) | (39) | (2,685) | (4.71) | ||||||||||
Russia exit charges (benefits) | - | 109 | 109 | (2) | 111 | 0.20 | ||||||||||
Divestiture-related restructuring actions | - | 41 | 41 | 9 | 32 | 0.05 | ||||||||||
Divestiture costs | - | 6 | 6 | 2 | 4 | 0.01 | ||||||||||
Total special items | (350) | (2,366) | (2,366) | 11 | (2,377) | (4.17) | ||||||||||
Adjusted amounts (non-GAAP measures)4
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$ | 8,269 | $ | 1,790 | 21.6 | % | $ | 1,766 | $ | 282 | 15.9 | % | $ | 1,482 | $ | 2.60 |
Three months ended September 30, 2023 | ||||||||||||||||||||
(Dollars in millions, except per share amounts) | Net sales | Sales change | Operating income (loss) | Operating income (loss) margin | Income (loss) before taxes | Provision (benefit) for income taxes | Effective tax rate | Net income (loss) attributable to 3M | Earnings (loss) per diluted share | Earnings (loss) per diluted share percent change | ||||||||||
Safety and Industrial | ||||||||||||||||||||
GAAP amounts | $ | 666 | 24.2 | % | ||||||||||||||||
Adjustments for special items: | ||||||||||||||||||||
Net costs for significant litigation | 42 | |||||||||||||||||||
Total special items | 42 | |||||||||||||||||||
Adjusted amounts (non-GAAP measures)4
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$ | 708 | 25.7 | % | ||||||||||||||||
Transportation and Electronics | ||||||||||||||||||||
GAAP amounts | $ | 2,171 | (3.0) | % | $ | 389 | 17.9 | % | ||||||||||||
Adjustments for special items: | ||||||||||||||||||||
Manufactured PFAS products | (292) | 105 | ||||||||||||||||||
Total special items | (292) | 105 | ||||||||||||||||||
Adjusted amounts (non-GAAP measures)4
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$ | 1,879 | (0.5) | % | $ | 494 | 26.3 | % | ||||||||||||
Total Company | ||||||||||||||||||||
GAAP amounts | $ | 8,312 | (3.6) | % | $ | (2,654) | (31.9) | % | $ | (2,854) | $ | (781) | 27.4 | % | $ | (2,075) | $ | (3.74) | (155)% | |
Adjustments for special items: | ||||||||||||||||||||
Net costs for significant litigation5
|
- | 4,312 | 4,469 | 1,068 | 3,401 | 6.13 | ||||||||||||||
Manufactured PFAS products | (292) | 105 | 105 | 25 | 80 | 0.15 | ||||||||||||||
Gain on business divestitures | - | (36) | (36) | (11) | (25) | (0.05) | ||||||||||||||
Divestiture costs | - | 132 | 132 | 26 | 106 | 0.19 | ||||||||||||||
Total special items | (292) | 4,513 | 4,670 | 1,108 | 3,562 | 6.42 | ||||||||||||||
Adjusted amounts (non-GAAP measures)4
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$ | 8,020 | (3.0) | % | $ | 1,859 | 23.2 | % | $ | 1,816 | $ | 327 | 18.1 | % | $ | 1,487 | $ | 2.68 | 3 | % |
Nine months ended September 30, 2022 | ||||||||||||||||
(Dollars in millions, except per share amounts) | Net sales | Operating income (loss) | Operating income (loss) margin | Income (loss) before taxes | Provision (benefit) for income taxes | Effective tax rate | Net income (loss) attributable to 3M | Earnings per diluted share | ||||||||
Safety and Industrial | ||||||||||||||||
GAAP amounts | $ | 572 | 6.4 | % | ||||||||||||
Adjustments for special items: | ||||||||||||||||
Net costs for significant litigation | 1,421 | |||||||||||||||
Total special items | 1,421 | |||||||||||||||
Adjusted amounts (non-GAAP measures)4
|
$ | 1,993 | 22.5 | % | ||||||||||||
Transportation and Electronics | ||||||||||||||||
GAAP amounts | $ | 6,847 | $ | 1,414 | 20.6 | % | ||||||||||
Adjustments for special items: | ||||||||||||||||
Manufactured PFAS products | (988) | (101) | ||||||||||||||
Total special items | (988) | (101) | ||||||||||||||
Adjusted amounts (non-GAAP measures)4
|
$ | 5,859 | $ | 1,313 | 22.4 | % | ||||||||||
Total Company | ||||||||||||||||
GAAP amounts | $ | 26,150 | $ | 5,907 | 22.6 | % | $ | 5,795 | $ | 550 | 9.5 | % | $ | 5,236 | $ | 9.15 |
Adjustments for special items: | ||||||||||||||||
Net costs for significant litigation | - | 2,233 | 2,233 | 456 | 1,777 | 3.10 | ||||||||||
Manufactured PFAS products | (988) | (101) | (101) | (26) | (75) | (0.13) | ||||||||||
Gain on business divestitures | - | (2,724) | (2,724) | (39) | (2,685) | (4.69) | ||||||||||
Russia exit charges (benefits) | - | 109 | 109 | (2) | 111 | 0.19 | ||||||||||
Divestiture-related restructuring actions | - | 41 | 41 | 9 | 32 | 0.06 | ||||||||||
Divestiture costs | - | 6 | 6 | 2 | 4 | 0.01 | ||||||||||
Total special items | (988) | (436) | (436) | 400 | (836) | (1.46) | ||||||||||
Adjusted amounts (non-GAAP measures)4
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$ | 25,162 | $ | 5,471 | 21.7 | % | $ | 5,359 | $ | 950 | 17.7 | % | $ | 4,400 | $ | 7.69 |
Nine months ended September 30, 2023 | ||||||||||||||||||||
(Dollars in millions, except per share amounts) | Net sales | Sales change | Operating income (loss) | Operating income (loss) margin | Income (loss) before taxes | Provision (benefit) for income taxes | Effective tax rate | Net income (loss) attributable to 3M | Earnings (loss) per diluted share | Earnings (loss) per diluted share percent change | ||||||||||
Safety and Industrial | ||||||||||||||||||||
GAAP amounts | $ | 1,801 | 21.7 | % | ||||||||||||||||
Adjustments for special items: | ||||||||||||||||||||
Net costs for significant litigation | 83 | |||||||||||||||||||
Total special items | 83 | |||||||||||||||||||
Adjusted amounts (non-GAAP measures)4
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$ | 1,884 | 22.7 | % | ||||||||||||||||
Transportation and Electronics | ||||||||||||||||||||
GAAP amounts | $ | 6,412 | (6.3) | % | $ | 1,093 | 17.0 | % | ||||||||||||
Adjustments for special items: | ||||||||||||||||||||
Manufactured PFAS products | (969) | 54 | ||||||||||||||||||
Total special items | (969) | 54 | ||||||||||||||||||
Adjusted amounts (non-GAAP measures)4
|
$ | 5,443 | (7.1) | % | $ | 1,147 | 21.1 | % | ||||||||||||
Total Company | ||||||||||||||||||||
GAAP amounts | $ | 24,668 | (5.7) | % | $ | (10,371) | (42.0) | % | $ | (10,688) | $ | (2,755) | 25.8 | % | $ | (7,940) | $ | (14.34) | N/M | |
Adjustments for special items: | ||||||||||||||||||||
Net costs for significant litigation5
|
- | 14,792 | 14,961 | 3,532 | 11,429 | 20.64 | ||||||||||||||
Manufactured PFAS products | (969) | 54 | 54 | 12 | 42 | 0.08 | ||||||||||||||
Gain on business divestitures | - | (36) | (36) | (11) | (25) | (0.05) | ||||||||||||||
Russia exit charges (benefits) | - | (18) | (18) | 3 | (21) | (0.04) | ||||||||||||||
Divestiture costs | - | 359 | 359 | 66 | 293 | 0.53 | ||||||||||||||
Total special items | (969) | 15,151 | 15,320 | 3,602 | 11,718 | 21.16 | ||||||||||||||
Adjusted amounts (non-GAAP measures)4
|
$ | 23,699 | (5.8) | % | $ | 4,780 | 20.2 | % | $ | 4,632 | $ | 847 | 18.3 | % | $ | 3,778 | $ | 6.82 | (11) | % |
Full year 2023 forecast | |||
2023 adjusted earnings per share (non-GAAP measure)4,6
|
$8.95
|
to |
$9.15
|
2023 adjusted effective tax rate (non-GAAP measure)4,6
|
~ 18% |
Three months ended September 30, 2023 | ||||||||||
Sales Change3
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Organic sales | Acquisitions | Divestitures | Translation | Total sales change | |||||
Total Company | (3.7) | % | 0.4 | % | (0.9) | % | 0.6 | % | (3.6) | % |
Remove manufactured PFAS products special item impact | 0.6 | - | - | - | 0.6 | |||||
Adjusted total Company (non-GAAP measures)4
|
(3.1) | % | 0.4 | % | (0.9) | % | 0.6 | % | (3.0) | % |
Transportation and Electronics | (4.1) | % | 1.4 | % | (0.4) | % | 0.1 | % | (3.0) | % |
Remove manufactured PFAS products special item impact | 2.3 | 0.3 | (0.1) | - | 2.5 | |||||
Adjusted Transportation and Electronics (non-GAAP measures)4
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(1.8) | % | 1.7 | % | (0.5) | % | 0.1 | % | (0.5) | % |
By Geographic Area | ||||||||||
Americas | 0.2 | % | 0.6 | % | (0.7) | % | 0.5 | % | 0.6 | % |
Remove manufactured PFAS products special item impact | 0.2 | - | - | (0.1) | 0.1 | |||||
Adjusted Americas (non-GAAP measures)4
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0.4 | % | 0.6 | % | (0.7) | % | 0.4 | % | 0.7 | % |
Asia Pacific | (12.4) | % | 0.1 | % | (1.0) | % | (2.3) | % | (15.6) | % |
Remove manufactured PFAS products special item impact | 0.9 | - | (0.1) | - | 0.8 | |||||
Adjusted Asia Pacific (non-GAAP measures)4
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(11.5) | % | 0.1 | % | (1.1) | % | (2.3) | % | (14.8) | % |
Europe, Middle East & Africa | (1.6) | % | 0.1 | % | (1.2) | % | 6.6 | % | 3.9 | % |
Remove manufactured PFAS products special item impact | 0.7 | - | (0.1) | (0.1) | 0.5 | |||||
Adjusted Europe, Middle East & Africa (non-GAAP measures)4
|
(0.9) | % | 0.1 | % | (1.3) | % | 6.5 | % | 4.4 | % |
Nine months ended September 30, 2023 | ||||||||||
Sales Change3
|
Organic sales | Acquisitions | Divestitures | Translation | Total sales change | |||||
Total Company | (3.6) | % | 0.2 | % | (1.2) | % | (1.1) | % | (5.7) | % |
Remove manufactured PFAS products special item impact | (0.2) | - | - | 0.1 | (0.1) | |||||
Adjusted total Company (non-GAAP measures) | (3.8) | % | 0.2 | % | (1.2) | % | (1.0) | % | (5.8) | % |
Transportation and Electronics | (4.5) | % | 0.6 | % | (0.9) | % | (1.5) | % | (6.3) | % |
Remove manufactured PFAS products special item impact | (0.8) | 0.2 | (0.2) | - | (0.8) | |||||
Adjusted Transportation and Electronics (non-GAAP measures) | (5.3) | % | 0.8 | % | (1.1) | % | (1.5) | % | (7.1) | % |
By Geographic Area | ||||||||||
Americas | 0.5 | % | 0.3 | % | (1.3) | % | (0.1) | % | (0.6) | % |
Remove manufactured PFAS products special item impact | (0.4) | - | - | 0.1 | (0.3) | |||||
Adjusted Americas (non-GAAP measures)4
|
0.1 | % | 0.3 | % | (1.3) | % | - | % | (0.9) | % |
Asia Pacific | (11.9) | % | - | % | (1.0) | % | (3.9) | % | (16.8) | % |
Remove manufactured PFAS products special item impact | (0.4) | - | (0.1) | 0.1 | (0.4) | |||||
Adjusted Asia Pacific (non-GAAP measures)4
|
(12.3) | % | - | % | (1.1) | % | (3.8) | % | (17.2) | % |
Europe, Middle East & Africa | (2.0) | % | - | % | (1.0) | % | 0.6 | % | (2.4) | % |
Remove manufactured PFAS products special item impact | 0.1 | - | - | - | 0.1 | |||||
Adjusted Europe, Middle East & Africa (non-GAAP measures)4
|
(1.9) | % | - | % | (1.0) | % | 0.6 | % | (2.3) | % |
Full-Year 2023 Forecast | ||||||||||
Worldwide Sales Change3
|
Organic sales | Acquisitions | Divestitures | Translation | Total sales change | |||||
Total Company6
|
~ (3)% | - | % |
~ (1)%
|
~ (1)% |
~ (5)%
|
||||
Remove manufactured PFAS products impact6
|
- | % | - | % | - | % | - | % | - | % |
Adjusted total Company (non-GAAP measures)4,6
|
~ (3)% | - | % | ~ (1)% | ~ (1)% | ~ (5)% |
Three months ended September 30, |
Nine months ended September 30, |
|||||||
Major GAAP Cash Flow Categories (dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||
Net cash provided by (used in) operating activities | $ | 1,910 | $ | 1,531 | $ | 4,694 | $ | 3,669 |
Net cash provided by (used in) investing activities | (287) | 156 | (906) | (658) | ||||
Net cash provided by (used in) financing activities | (704) | (933) | (2,223) | (4,035) |
Three months ended September 30, |
Nine months ended September 30, |
|||||||
Adjusted Free Cash Flow (non-GAAP measure) (dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||
Net cash provided by (used in) operating activities | $ | 1,910 | $ | 1,531 | $ | 4,694 | $ | 3,669 |
Adjustments for special items: | ||||||||
Net costs for significant litigation after-tax payment impacts | 329 | 250 | 488 | 538 | ||||
Divestiture costs after-tax payment impacts | 100 | 2 | 217 | 2 | ||||
Divestiture-related restructuring after-tax payment impacts | - | 4 | 7 | 4 | ||||
Russia exit charges after-tax payment impacts | - | 2 | - | 2 | ||||
TCJA transition tax payment | - | - | 126 | 68 | ||||
Manufactured PFAS products impact | (42) | (6) | (53) | 8 | ||||
Total adjustments for special items | 387 | 252 | 785 | 622 | ||||
Adjusted net cash provided by (used in) operating activities (non-GAAP measure)7
|
$ | 2,297 | $ | 1,783 | 5,479 | 4,291 | ||
Purchases of property, plant and equipment (PPE) | (405) | (435) | (1,257) | (1,243) | ||||
Manufactured PFAS products impact - removing related purchases of PPE | 38 | 42 | 117 | 123 | ||||
Adjusted purchases of PPE (non-GAAP measure)7
|
$ | (367) | $ | (393) | $ | (1,140) | $ | (1,120) |
Adjusted free cash flow (non-GAAP measure)7
|
$ | 1,930 | $ | 1,390 | $ | 4,339 | $ | 3,171 |
Adjusted net income (loss) attributable to 3M (non-GAAP measure)4
|
$ | 1,487 | $ | 1,482 | $ | 3,778 | $ | 4,400 |
Adjusted free cash flow conversion (non-GAAP measure)7
|
130 | % | 94 | % | 115 | % | 72 | % |
(Dollars in billions) | Full year 2023 forecast |
Net cash provided by (used in) operating activities6
|
$6.5 to $6.9
|
Adjustments for special items6
|
- |
Adjusted net cash provided by (used in) operating activities |
$6.5 to $6.9
|
Purchase of property, plant and equipment (PPE) |
($1.5 to $1.7)
|
Manufactured PFAS products impact - removing related purchases of PPE | ~$0.2 |
Adjusted purchases of PPE (non-GAAP measure)7
|
($1.3 to $1.5)
|
Adjusted free cash flow6,7
|
$5.0to $5.6
|
Net income (loss) attributable to 3M6
|
$5.0 to $5.1
|
Adjustments for special items6
|
- |
Adjusted net income (loss) attributable to 3M4,6
|
$5.0 to $5.1 |
Adjusted free cash flow conversion6,7
|
100% to 110%
|
Adjusted EBITDA (non-GAAP measure)8
|
Adjusted EBITDA margin (non-GAAP measure)8
|
||||||||||||||
Three months ended September 30, |
Nine months ended September 30, |
Three months ended September 30, |
Nine months ended September 30, |
||||||||||||
(Dollars in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||
Safety and Industrial | $ | 826 | $ | 810 | $ | 2,268 | $ | 2,418 | 30.0% | 28.0% | 27.3% | 27.3% | |||
Transportation and Electronics | 570 | 492 | 1,377 | 1,566 | 30.3% | 26.1% | 25.3% | 26.7% | |||||||
Health Care | 609 | 601 | 1,680 | 1,848 | 29.4% | 29.0% | 27.3% | 29.0% | |||||||
Consumer | 316 | 336 | 806 | 877 | 24.0% | 23.8% | 21.2% | 21.7% | |||||||
Corporate and Unallocated | 4 | (16) | (30) | 84 | |||||||||||
Total Company | $ | 2,325 | $ | 2,223 | $ | 6,101 | $ | 6,793 | 29.0% | 26.9 | % | 25.7 | % | 27.0 | % |
Three months ended September 30, |
Nine months ended September 30, |
|||||||
Adjusted EBITDA (non-GAAP measure) (dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||
Adjusted net sales (non-GAAP measure)4
|
$ | 8,020 | $ | 8,269 | $ | 23,699 | $ | 25,162 |
Net income (loss) attributable to 3M | (2,075) | 3,859 | (7,940) | 5,236 | ||||
Add/(subtract): | ||||||||
Net income/(loss) attributable to noncontrolling interest | 4 | 4 | 14 | 12 | ||||
(Income)/loss from unconsolidated subsidiaries, net of taxes | (2) | (2) | (7) | (3) | ||||
Provision for income taxes | (781) | 271 | (2,755) | 550 | ||||
Other expense/(income): | ||||||||
Interest (Income)/expense | 231 | 89 | 410 | 311 | ||||
Pension & OPEB non-service cost (benefit) | (31) | (65) | (93) | (199) | ||||
Depreciation and amortization (DA) expense | 535 | 450 | 1,450 | 1,371 | ||||
Adjustments for special items: | ||||||||
Net costs for significant litigation | 4,312 | 267 | 14,792 | 2,233 | ||||
Manufactured PFAS products impact: | ||||||||
Remove manufactured PFAS products operating (income) loss | 105 | (65) | 54 | (101) | ||||
Subtract PFAS-related amount included in DA above | (69) | (17) | (129) | (49) | ||||
Gain on business divestitures
|
(36) | (2,724) | (36) | (2,724) | ||||
Divestiture-related restructuring actions
|
- | 41 | - | 41 | ||||
Russia exit charges (benefits)
|
- | 109 | (18) | 109 | ||||
Divestiture costs | 132 | 6 | 359 | 6 | ||||
Total special items | 4,444 | (2,383) | 15,022 | (485) | ||||
Adjusted EBITDA (non-GAAP measure)8
|
$ | 2,325 | $ | 2,223 | $ | 6,101 | $ | 6,793 |
Adjusted EBITDA margin (non-GAAP measure)8
|
29.0 | % | 26.9 | % | 25.7 | % | 27.0 | % |
Adjusted EBITDA (non-GAAP measure)
Three months ended September 30, 2023 (dollars in millions) |
Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Total Company | ||||||
Adjusted net sales (non-GAAP measure)4
|
$ | 2,751 | $ | 1,879 | $ | 2,073 | $ | 1,315 | $ | 2 | $ | 8,020 |
Business segment operating income (loss) (measure of segment operating performance), adjusted for special items (non-GAAP measure)4
|
$ | 708 | $ | 494 | $ | 460 | $ | 269 | $ | (72) | $ | 1,859 |
Add/(subtract): | ||||||||||||
Add depreciation and amortization (DA) expense | 118 | 145 | 149 | 47 | 76 | 535 | ||||||
Subtract PFAS-related amount included in DA above | - | (69) | - | - | - | (69) | ||||||
Adjusted EBITDA (non-GAAP measure)8
|
$ | 826 | $ | 570 | $ | 609 | $ | 316 | $ | 4 | $ | 2,325 |
Adjusted EBITDA margin (non-GAAP measure)8
|
30.0 | % | 30.3 | % | 29.4 | % | 24.0 | % | 29.0 | % | ||
Adjusted EBITDA (non-GAAP measure)
Three months ended September 30, 2022 (dollars in millions) |
Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Total Company | ||||||
Adjusted net sales (non-GAAP measure)4
|
$ | 2,894 | $ | 1,889 | $ | 2,076 | $ | 1,409 | $ | 1 | $ | 8,269 |
Business segment operating income (loss) (measure of segment operating performance), adjusted for special items (non-GAAP measure)4
|
$ | 673 | $ | 410 | $ | 450 | $ | 299 | $ | (42) | $ | 1,790 |
Add/(subtract): | ||||||||||||
Add depreciation and amortization (DA) expense | 137 | 99 | 151 | 37 | 26 | 450 | ||||||
Subtract PFAS-related amount included in DA above | - | (17) | - | - | - | (17) | ||||||
Adjusted EBITDA (non-GAAP measure)8
|
$ | 810 | $ | 492 | $ | 601 | $ | 336 | $ | (16) | $ | 2,223 |
Adjusted EBITDA margin (non-GAAP measure)8
|
28.0 | % | 26.1 | % | 29.0 | % | 23.8 | % | 26.9 | % |
Adjusted EBITDA (non-GAAP measure)
Nine months ended September 30, 2023 (dollars in millions) |
Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Total Company | ||||||
Adjusted net sales (non-GAAP measure)4
|
$ | 8,295 | $ | 5,443 | $ | 6,158 | $ | 3,800 | $ | 3 | $ | 23,699 |
Business segment operating income (loss) (measure of segment operating performance), adjusted for special items (non-GAAP measure)4
|
$ | 1,884 | $ | 1,147 | $ | 1,231 | $ | 683 | $ | (165) | $ | 4,780 |
Add/(subtract): | ||||||||||||
Add depreciation and amortization (DA) expense | 384 | 359 | 449 | 123 | 135 | 1,450 | ||||||
Subtract PFAS-related amount included in DA above | - | (129) | - | - | - | (129) | ||||||
Adjusted EBITDA (non-GAAP measure)8
|
$ | 2,268 | $ | 1,377 | $ | 1,680 | $ | 806 | $ | (30) | $ | 6,101 |
Adjusted EBITDA margin (non-GAAP measure)8
|
27.3 | % | 25.3 | % | 27.3 | % | 21.2 | % | 25.7 | % | ||
Adjusted EBITDA (non-GAAP measure)
Nine months ended September 30, 2022 (dollars in millions) |
Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Total Company | ||||||
Adjusted net sales (non-GAAP measure)4
|
$ | 8,869 | $ | 5,859 | $ | 6,383 | $ | 4,048 | $ | 3 | $ | 25,162 |
Business segment operating income (measure of segment operating performance), adjusted for special items (non-GAAP measure)4
|
$ | 1,993 | $ | 1,313 | $ | 1,387 | $ | 766 | $ | 12 | $ | 5,471 |
Add/(subtract): | ||||||||||||
Add depreciation and amortization (DA) expense | 425 | 302 | 461 | 111 | 72 | 1,371 | ||||||
Subtract PFAS-related amount included in DA above | - | (49) | - | - | - | (49) | ||||||
Adjusted EBITDA (non-GAAP measure)8
|
$ | 2,418 | $ | 1,566 | $ | 1,848 | $ | 877 | $ | 84 | $ | 6,793 |
Adjusted EBITDA margin (non-GAAP measure)8
|
27.3 | % | 26.7 | % | 29.0 | % | 21.7 | % | 27.0 | % |
Net Debt (non-GAAP measure) | September 30, 2023 | December 31, 2022 | ||
Total debt | $ | 16,013 | $ | 15,939 |
Less: Cash, cash equivalents and marketable securities | 5,236 | 3,916 | ||
Net debt (non-GAAP measure)9
|
$ | 10,777 | $ | 12,023 |
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3M Company published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 10:36:52 UTC.