![Results of operations and financial condition - form 8-k](https://www.moneycontroller.it/upload/aziende/3m-company_20210802123908.png)
Q4 2023
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Q4 2022
|
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GAAP earnings per share
|
$ | 1.70 | $ | 0.98 |
Special items: | ||||
Net costs for significant litigation
|
0.36 | 0.07 | ||
Other special items, net
|
0.36 | 1.13 | ||
Adjusted earnings per share (EPS)
|
$ | 2.42 | $ | 2.18 |
Memo: | ||||
GAAP operating income margin
|
15.5 | % | 7.8 | % |
Adjusted operating income margin1
|
20.9 | % | 19.1 | % |
1Above adjusted operating income margin for Q4 2023 includes a 1.4 percentage point headwind from restructuring related net charges.
|
GAAP | Adjusted (Non-GAAP) | |
Net sales (Millions) | $8,013 | $7,693 |
Sales change
|
||
Total sales | (0.8)% | (0.3)% |
Components of sales change: | ||
Organic sales2
|
(1.9)% | (1.4)% |
Acquisitions/divestitures
|
0.2% | 0.2% |
Translation
|
0.9% | 0.9% |
Adjusted sales excludes manufactured PFAS products. | ||
2Above adjusted organic sales decline includes a 60 basis point headwind from the decline in disposable respirator demand.
|
Full Year 2023
|
Full Year 2022
|
|||
GAAP earnings (loss) per share | $ | (12.63) | $ | 10.18 |
Special items: | ||||
Impact of Combat Arms Earplug (CAE) settlement
|
5.94 | - | ||
Impact of public water systems (PWS) settlement
|
14.45 | - | ||
Other net costs for significant litigation
|
0.61 | 3.20 | ||
Other special items, net
|
0.87 | (3.50) | ||
Adjusted earnings per share (EPS)
|
$ | 9.24 | $ | 9.88 |
Memo: | ||||
GAAP operating income (loss) margin | (27.9) | % | 19.1 | % |
Adjusted operating income margin1
|
20.3 | % | 21.1 | % |
1Above adjusted operating income margin for full year 2023 includes a 1.4 percentage point headwind from restructuring related net charges.
|
GAAP | Adjusted (Non-GAAP) | |
Net sales (Millions) | $32,681 | $31,392 |
Sales change
|
||
Total sales | (4.5)% | (4.5)% |
Components of sales change: | ||
Organic sales2
|
(3.2)% | (3.2)% |
Acquisitions/divestitures
|
(0.7)% | (0.8)% |
Translation
|
(0.6)% | (0.5)% |
Adjusted sales excludes manufactured PFAS products. | ||
2Above adjusted organic sales decline includes a 1.9 percentage point headwind from the decline in disposable respirator demand, along with the 2022 exit of Russia.
|
Three months ended December 31, |
Year ended December 31, |
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2023 | 2022 | 2023 | 2022 | |||||
Net sales | $ | 8,013 | $ | 8,079 | $ | 32,681 | $ | 34,229 |
Operating expenses | ||||||||
Cost of sales | 4,678 | 4,585 | 18,477 | 19,232 | ||||
Selling, general and administrative expenses | 1,625 | 2,146 | 21,526 | 9,049 | ||||
Research, development and related expenses | 467 | 445 | 1,842 | 1,862 | ||||
(Gain) loss on business divestitures | - | - | (36) | (2,724) | ||||
Goodwill impairment expense | - | 271 | - | 271 | ||||
Total operating expenses | 6,770 | 7,447 | 41,809 | 27,690 | ||||
Operating income (loss) | 1,243 | 632 | (9,128) | 6,539 | ||||
Other expense (income), net | 243 | 35 | 560 | 147 | ||||
Income (loss) before income taxes | 1,000 | 597 | (9,688) | 6,392 | ||||
Provision (benefit) for income taxes | 64 | 62 | (2,691) | 612 | ||||
Income (loss) of consolidated group | 936 | 535 | (6,997) | 5,780 | ||||
Income (loss) from unconsolidated subsidiaries, net of taxes | 11 | 8 | 18 | 11 | ||||
Net income (loss) including noncontrolling interest | 947 | 543 | (6,979) | 5,791 | ||||
Less: Net income (loss) attributable to noncontrolling interest | 2 | 2 | 16 | 14 | ||||
Net income (loss) attributable to 3M | $ | 945 | $ | 541 | $ | (6,995) | $ | 5,777 |
Weighted average 3M common shares outstanding - basic | 554.7 | 551.9 | 553.9 | 566.0 | ||||
Earnings (loss) per share attributable to 3M common shareholders - basic | $ | 1.70 | $ | 0.98 | $ | (12.63) | $ | 10.21 |
Weighted average 3M common shares outstanding - diluted | 555.4 | 552.9 | 553.9 | 567.6 | ||||
Earnings (loss) per share attributable to 3M common shareholders - diluted | $ | 1.70 | $ | 0.98 | $ | (12.63) | $ | 10.18 |
December 31, 2023 |
December 31, 2022 |
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ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ | 5,933 | $ | 3,655 |
Marketable securities - current | 53 | 238 | ||
Accounts receivable - net | 4,750 | 4,532 | ||
Inventories | 4,822 | 5,372 | ||
Prepaids | 485 | 435 | ||
Other current assets | 336 | 456 | ||
Total current assets | 16,379 | 14,688 | ||
Property, plant and equipment - net | 9,159 | 9,178 | ||
Operating lease right of use assets | 759 | 829 | ||
Goodwill and intangible assets - net | 17,153 | 17,489 | ||
Other assets | 7,130 | 4,271 | ||
Total assets | $ | 50,580 | $ | 46,455 |
LIABILITIES AND EQUITY | ||||
Current liabilities | ||||
Short-term borrowings and current portion of long-term debt | $ | 2,947 | $ | 1,938 |
Accounts payable | 3,245 | 3,183 | ||
Accrued payroll | 904 | 692 | ||
Accrued income taxes | 365 | 259 | ||
Operating lease liabilities - current | 225 | 261 | ||
Other current liabilities | 7,611 | 3,190 | ||
Total current liabilities | 15,297 | 9,523 | ||
Long-term debt | 13,088 | 14,001 | ||
Other liabilities | 17,327 | 8,161 | ||
Total liabilities | 45,712 | 31,685 | ||
Total equity | 4,868 | 14,770 | ||
Shares outstanding | ||||
December 31, 2023: 552,581,136
|
||||
December 31, 2022: 549,245,105
|
||||
Total liabilities and equity | $ | 50,580 | $ | 46,455 |
Year ended December 31,
|
||||
2023 | 2022 | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 6,680 | $ | 5,591 |
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (1,615) | (1,749) | ||
Purchases and proceeds from sale or maturities of marketable securities and investments - net | 194 | 11 | ||
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 | 154 | 201 | ||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (1,207) | (1,046) | ||
Cash flows from financing activities: | ||||
Change in debt | (46) | (838) | ||
Purchases of treasury stock | (33) | (1,464) | ||
Proceeds from issuances of treasury stock pursuant to stock option and benefit plans | 264 | 381 | ||
Dividends paid to shareholders | (3,311) | (3,369) | ||
Other financing activities | (21) | (60) | ||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (3,147) | (5,350) | ||
Effect of exchange rate changes on cash and cash equivalents | (48) | (104) | ||
Net increase (decrease) in cash and cash equivalents | 2,278 | (909) | ||
Cash and cash equivalents at beginning of year | 3,655 | 4,564 | ||
Cash and cash equivalents at end of period | $ | 5,933 | $ | 3,655 |
Three months ended December 31, 2023 | ||||||||
Sales Change Analysis By Geographic Area | Americas | Asia Pacific | Europe, Middle East and Africa | Worldwide | ||||
Organic sales | 0.2 | % | (5.5) | % | (2.9) | % | (1.9) | % |
Acquisitions | 0.4 | 0.1 | 0.1 | 0.3 | ||||
Divestitures | 0.3 | (0.4) | (0.7) | (0.1) | ||||
Translation | 0.4 | (0.9) | 5.0 | 0.9 | ||||
Total sales change | 1.3 | % | (6.7) | % | 1.5 | % | (0.8) | % |
Year ended December 31, 2023 | ||||||||
Sales Change Analysis By Geographic Area | Americas | Asia Pacific | Europe, Middle East and Africa | Worldwide | ||||
Organic sales | 0.4 | % | (10.5) | % | (2.2) | % | (3.2) | % |
Acquisitions | 0.3 | 0.1 | - | 0.2 | ||||
Divestitures | (0.9) | (0.9) | (0.9) | (0.9) | ||||
Translation | 0.1 | (3.2) | 1.7 | (0.6) | ||||
Total sales change | (0.1) | % | (14.5) | % | (1.4) | % | (4.5) | % |
Three months ended December 31, 2023 | ||||||||||
Worldwide Sales Change By Business Segment | Organic sales | Acquisitions | Divestitures | Translation |
Total sales change |
|||||
Safety and Industrial | (3.9) | % | - | % | - | % | 1.2 | % | (2.7) | % |
Transportation and Electronics | - | 1.1 | - | 0.5 | 1.6 | |||||
Health Care | (1.0) | - | (0.4) | 1.1 | (0.3) | |||||
Consumer | (2.2) | - | - | 0.6 | (1.6) | |||||
Total Company | (1.9) | 0.3 | (0.1) | 0.9 | (0.8) | |||||
Year ended December 31, 2023 | ||||||||||
Worldwide Sales Change By Business Segment | Organic sales | Acquisitions | Divestitures | Translation |
Total sales change |
|||||
Safety and Industrial | (5.1) | % | - | % | - | % | (0.5) | % | (5.6) | % |
Transportation and Electronics | (3.5) | 0.7 | (0.7) | (1.0) | (4.5) | |||||
Health Care | 0.7 | - | (3.1) | (0.4) | (2.8) | |||||
Consumer | (4.7) | - | (0.1) | (0.2) | (5.0) | |||||
Total Company | (3.2) | 0.2 | (0.9) | (0.6) | (4.5) |
BUSINESS SEGMENT INFORMATION |
Three months ended December 31, |
Year ended December 31, |
||||||
NET SALES | ||||||||
(Millions) | 2023 | 2022 | 2023 | 2022 | ||||
Safety and Industrial | $ | 2,661 | $ | 2,735 | $ | 10,956 | $ | 11,604 |
Transportation and Electronics | 2,089 | 2,055 | 8,501 | 8,902 | ||||
Health Care | 2,037 | 2,044 | 8,195 | 8,427 | ||||
Consumer | 1,226 | 1,244 | 5,026 | 5,292 | ||||
Corporate and Unallocated | - | 1 | 3 | 4 | ||||
Total Company | $ | 8,013 | $ | 8,079 | $ | 32,681 | $ | 34,229 |
BUSINESS SEGMENT INFORMATION |
Three months ended December 31, |
Year ended December 31, |
||||||
OPERATING INCOME (LOSS) | ||||||||
(Millions) | 2023 | 2022 | 2023 | 2022 | ||||
Safety and Industrial | $ | 523 | $ | 563 | $ | 2,324 | $ | 1,135 |
Transportation and Electronics | 219 | (441) | 1,312 | 973 | ||||
Health Care | 372 | 412 | 1,603 | 1,799 | ||||
Consumer | 221 | 212 | 904 | 978 | ||||
Total business segment operating income (loss) | 1,335 | 746 | 6,143 | 4,885 | ||||
Corporate and Unallocated | ||||||||
Corporate special items: | ||||||||
Net costs for significant litigation | (76) | (65) | (14,785) | (877) | ||||
Divestiture costs | (137) | (54) | (496) | (60) | ||||
Gain on business divestitures
|
- | - | 36 | 2,724 | ||||
Divestiture-related restructuring actions
|
- | - | - | (41) | ||||
Russia exit (charges) benefits
|
- | - | 18 | (109) | ||||
Total corporate special items | (213) | (119) | (15,227) | 1,637 | ||||
Other corporate (expense) income - net
|
121 | 5 | (44) | 17 | ||||
Total Corporate and Unallocated | (92) | (114) | (15,271) | 1,654 | ||||
Total Company operating income (loss) | 1,243 | 632 | (9,128) | 6,539 | ||||
Other expense/(income), net | 243 | 35 | 560 | 147 | ||||
Income (loss) before income taxes | $ | 1,000 | $ | 597 | $ | (9,688) | $ | 6,392 |
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)
|
Considered, in addition to segment operating performance, in evaluating and managing operations; useful in understanding underlying business performance, provides additional transparency to special items
|
•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)
|
|
•Earnings (loss) per share
|
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
|
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
|
Considered in evaluating and managing operations; meaningful in analyses of ongoing underlying operating trends |
•Net debt
|
Meaningful as indicator of liquidity and measure of capital structure strategy |
Three months ended December 31, 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 | $ | 563 | 20.6 | % | ||||||||||||
Adjustments for special items: | ||||||||||||||||
Net costs for significant litigation | (7) | |||||||||||||||
Total special items | (7) | |||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 556 | 20.4 | % | ||||||||||||
Transportation and Electronics | ||||||||||||||||
GAAP amounts | $ | 2,055 | $ | (441) | (21.4) | % | ||||||||||
Adjustments for special items: | ||||||||||||||||
Manufactured PFAS products | (363) | 732 | ||||||||||||||
Total special items | (363) | 732 | ||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 1,692 | $ | 291 | 17.1 | % | ||||||||||
Total Company | ||||||||||||||||
GAAP amounts | $ | 8,079 | $ | 632 | 7.8 | % | $ | 597 | $ | 62 | 10.5 | % | $ | 541 | $ | 0.98 |
Adjustments for special items: | ||||||||||||||||
Net costs for significant litigation | - | 58 | 58 | 20 | 38 | 0.07 | ||||||||||
Manufactured PFAS products | (363) | 732 | 732 | 147 | 585 | 1.05 | ||||||||||
Divestiture costs | - | 54 | 54 | 11 | 43 | 0.08 | ||||||||||
Total special items | (363) | 844 | 844 | 178 | 666 | 1.20 | ||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 7,716 | $ | 1,476 | 19.1 | % | $ | 1,441 | $ | 240 | 16.6 | % | $ | 1,207 | $ | 2.18 |
Three months ended December 31, 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 | $ | 523 | 19.6 | % | ||||||||||||||||
Adjustments for special items: | ||||||||||||||||||||
Net costs for significant litigation | 1 | |||||||||||||||||||
Total special items | 1 | |||||||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 524 | 19.7 | % | ||||||||||||||||
Transportation and Electronics | ||||||||||||||||||||
GAAP amounts | $ | 2,089 | 1.6 | % | $ | 219 | 10.5 | % | ||||||||||||
Adjustments for special items: | ||||||||||||||||||||
Manufactured PFAS products | (320) | 151 | ||||||||||||||||||
Total special items | (320) | 151 | ||||||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 1,769 | 4.5 | % | $ | 370 | 20.9 | % | ||||||||||||
Total Company | ||||||||||||||||||||
GAAP amounts | $ | 8,013 | (0.8) | % | $ | 1,243 | 15.5 | % | $ | 1,000 | $ | 64 | 6.4 | % | $ | 945 | $ | 1.70 | 74% | |
Adjustments for special items: | ||||||||||||||||||||
Net costs for significant litigation6
|
- | 77 | 284 | 83 | 201 | 0.36 | ||||||||||||||
Manufactured PFAS products | (320) | 151 | 151 | 38 | 113 | 0.20 | ||||||||||||||
Gain on business divestitures | - | - | - | - | - | - | ||||||||||||||
Divestiture costs | - | 137 | 137 | 52 | 85 | 0.16 | ||||||||||||||
Total special items | (320) | 365 | 572 | 173 | 399 | 0.72 | ||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 7,693 | (0.3) | % | $ | 1,608 | 20.9 | % | $ | 1,572 | $ | 237 | 14.9 | % | $ | 1,344 | $ | 2.42 | 11 | % |
Year ended December 31, 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 | $ | 1,135 | 9.8 | % | ||||||||||||
Adjustments for special items: | ||||||||||||||||
Net costs for significant litigation | 1,414 | |||||||||||||||
Total special items | 1,414 | |||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 2,549 | 22.0 | % | ||||||||||||
Transportation and Electronics | ||||||||||||||||
GAAP amounts | $ | 8,902 | $ | 973 | 10.9 | % | ||||||||||
Adjustments for special items: | ||||||||||||||||
Manufactured PFAS products | (1,351) | 631 | ||||||||||||||
Total special items | (1,351) | 631 | ||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 7,551 | $ | 1,604 | 21.2 | % | ||||||||||
Total Company | ||||||||||||||||
GAAP amounts | $ | 34,229 | $ | 6,539 | 19.1 | % | $ | 6,392 | $ | 612 | 9.6 | % | $ | 5,777 | $ | 10.18 |
Adjustments for special items: | ||||||||||||||||
Net costs for significant litigation | - | 2,291 | 2,291 | 476 | 1,815 | 3.20 | ||||||||||
Manufactured PFAS products | (1,351) | 631 | 631 | 121 | 510 | 0.90 | ||||||||||
Gain on business divestitures | - | (2,724) | (2,724) | (39) | (2,685) | (4.73) | ||||||||||
Russia exit charges (benefits) | - | 109 | 109 | (2) | 111 | 0.20 | ||||||||||
Divestiture-related restructuring actions | - | 41 | 41 | 9 | 32 | 0.05 | ||||||||||
Divestiture costs | - | 60 | 60 | 13 | 47 | 0.08 | ||||||||||
Total special items | (1,351) | 408 | 408 | 578 | (170) | (0.30) | ||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 32,878 | $ | 6,947 | 21.1 | % | $ | 6,800 | $ | 1,190 | 17.5 | % | $ | 5,607 | $ | 9.88 |
Year ended December 31, 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 | $ | 2,324 | 21.2 | % | ||||||||||||||||
Adjustments for special items: | ||||||||||||||||||||
Net costs for significant litigation | 84 | |||||||||||||||||||
Total special items | 84 | |||||||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 2,408 | 22.0 | % | ||||||||||||||||
Transportation and Electronics | ||||||||||||||||||||
GAAP amounts | $ | 8,501 | (4.5) | % | $ | 1,312 | 15.4 | % | ||||||||||||
Adjustments for special items: | ||||||||||||||||||||
Manufactured PFAS products | (1,289) | 205 | ||||||||||||||||||
Total special items | (1,289) | 205 | ||||||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 7,212 | (4.5) | % | $ | 1,517 | 21.0 | % | ||||||||||||
Total Company | ||||||||||||||||||||
GAAP amounts | $ | 32,681 | (4.5) | % | $ | (9,128) | (27.9) | % | $ | (9,688) | $ | (2,691) | 27.8 | % | $ | (6,995) | $ | (12.63) | N/M | |
Adjustments for special items: | ||||||||||||||||||||
Net costs for significant litigation6
|
- | 14,869 | 15,245 | 3,615 | 11,630 | 21.00 | ||||||||||||||
Manufactured PFAS products | (1,289) | 205 | 205 | 50 | 155 | 0.28 | ||||||||||||||
Gain on business divestitures | - | (36) | (36) | (11) | (25) | (0.05) | ||||||||||||||
Russia exit charges (benefits) | - | (18) | (18) | 3 | (21) | (0.04) | ||||||||||||||
Divestiture costs | - | 496 | 496 | 118 | 378 | 0.68 | ||||||||||||||
Total special items | (1,289) | 15,516 | 15,892 | 3,775 | 12,117 | 21.87 | ||||||||||||||
Adjusted amounts (non-GAAP measures)5
|
$ | 31,392 | (4.5) | % | $ | 6,388 | 20.3 | % | $ | 6,204 | $ | 1,084 | 17.5 | % | $ | 5,122 | $ | 9.24 | (6) | % |
Q1 2024 forecast
|
2024 forecast
|
|
2024 adjusted earnings per share (non-GAAP measure)5,7
|
$2.00 to $2.15
|
$9.35 to $9.75
|
2024 adjusted effective tax rate (non-GAAP measure)5,7
|
18.5% to 19.5%
|
Three months ended December 31, 2023 | ||||||||||
Sales Change4
|
Organic sales | Acquisitions | Divestitures | Translation | Total sales change | |||||
Total Company | (1.9) | % | 0.3 | % | (0.1) | % | 0.9 | % | (0.8) | % |
Remove manufactured PFAS products special item impact | 0.5 | - | - | - | 0.5 | |||||
Adjusted total Company (non-GAAP measures)5
|
(1.4) | % | 0.3 | % | (0.1) | % | 0.9 | % | (0.3) | % |
Transportation and Electronics | - | % | 1.1 | % | - | % | 0.5 | % | 1.6 | % |
Remove manufactured PFAS products special item impact | 2.7 | 0.2 | - | - | 2.9 | |||||
Adjusted Transportation and Electronics (non-GAAP measures)5
|
2.7 | % | 1.3 | % | - | % | 0.5 | % | 4.5 | % |
By Geographic Area | ||||||||||
Americas | 0.2 | % | 0.4 | % | 0.3 | % | 0.4 | % | 1.3 | % |
Remove manufactured PFAS products special item impact | 0.1 | - | - | 0.1 | 0.2 | |||||
Adjusted Americas (non-GAAP measures)5
|
0.3 | % | 0.4 | % | 0.3 | % | 0.5 | % | 1.5 | % |
Asia Pacific | (5.5) | % | 0.1 | % | (0.4) | % | (0.9) | % | (6.7) | % |
Remove manufactured PFAS products special item impact | (0.3) | - | - | - | (0.3) | |||||
Adjusted Asia Pacific (non-GAAP measures)5
|
(5.8) | % | 0.1 | % | (0.4) | % | (0.9) | % | (7.0) | % |
Europe, Middle East & Africa | (2.9) | % | 0.1 | % | (0.7) | % | 5.0 | % | 1.5 | % |
Remove manufactured PFAS products special item impact | 2.3 | - | - | 0.1 | 2.4 | |||||
Adjusted Europe, Middle East & Africa (non-GAAP measures)5
|
(0.6) | % | 0.1 | % | (0.7) | % | 5.1 | % | 3.9 | % |
Year ended December 31, 2023 | ||||||||||
Sales Change4
|
Organic sales | Acquisitions | Divestitures | Translation | Total sales change | |||||
Total Company | (3.2) | % | 0.2 | % | (0.9) | % | (0.6) | % | (4.5) | % |
Remove manufactured PFAS products special item impact | - | - | (0.1) | 0.1 | - | |||||
Adjusted total Company (non-GAAP measures) | (3.2) | % | 0.2 | % | (1.0) | % | (0.5) | % | (4.5) | % |
Transportation and Electronics | (3.5) | % | 0.7 | % | (0.7) | % | (1.0) | % | (4.5) | % |
Remove manufactured PFAS products special item impact | - | 0.2 | (0.2) | - | - | |||||
Adjusted Transportation and Electronics (non-GAAP measures) | (3.5) | % | 0.9 | % | (0.9) | % | (1.0) | % | (4.5) | % |
By Geographic Area | ||||||||||
Americas | 0.4 | % | 0.3 | % | (0.9) | % | 0.1 | % | (0.1) | % |
Remove manufactured PFAS products special item impact | (0.1) | - | (0.1) | - | (0.2) | |||||
Adjusted Americas (non-GAAP measures)5
|
0.3 | % | 0.3 | % | (1.0) | % | 0.1 | % | (0.3) | % |
Asia Pacific | (10.5) | % | 0.1 | % | (0.9) | % | (3.2) | % | (14.5) | % |
Remove manufactured PFAS products special item impact | (0.4) | - | - | (0.1) | (0.5) | |||||
Adjusted Asia Pacific (non-GAAP measures)5
|
(10.9) | % | 0.1 | % | (0.9) | % | (3.3) | % | (15.0) | % |
Europe, Middle East & Africa | (2.2) | % | - | % | (0.9) | % | 1.7 | % | (1.4) | % |
Remove manufactured PFAS products special item impact | 0.6 | - | (0.1) | 0.1 | 0.6 | |||||
Adjusted Europe, Middle East & Africa (non-GAAP measures)5
|
(1.6) | % | - | % | (1.0) | % | 1.8 | % | (0.8) | % |
Full-Year 2024 Forecast | ||||||||||
Sales Change4
|
Organic sales | Acquisitions | Divestitures | Translation | Total sales change | |||||
Total Company7
|
flat to 2% | - | % | - | % | 0.25 | % |
0.25 to 2.25%
|
||
Remove manufactured PFAS products impact7
|
- | % | - | % | - | % | - | % | - | % |
Adjusted total Company (non-GAAP measures)5,7
|
flat to 2% | - | % | - | % | 0.25 | % | 0.25 to 2.25% |
Three months ended December 31, |
Year ended December 31, |
|||||||
Major GAAP Cash Flow Categories (dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||
Net cash provided by (used in) operating activities | $ | 1,986 | $ | 1,922 | $ | 6,680 | $ | 5,591 |
Net cash provided by (used in) investing activities | (301) | (388) | (1,207) | (1,046) | ||||
Net cash provided by (used in) financing activities | (924) | (1,315) | (3,147) | (5,350) |
Three months ended December 31, |
Year ended December 31, |
|||||||
Adjusted Free Cash Flow (non-GAAP measure) (dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||
Net cash provided by (used in) operating activities | $ | 1,986 | $ | 1,922 | $ | 6,680 | $ | 5,591 |
Adjustments for special items: | ||||||||
Net costs for significant litigation after-tax payment impacts | 281 | 178 | 769 | 716 | ||||
Divestiture costs after-tax payment impacts | 96 | 6 | 313 | 8 | ||||
Divestiture gains - closing cost after tax payment impacts | - | 27 | - | 27 | ||||
Divestiture-related restructuring after-tax payment impacts | 4 | 24 | 11 | 28 | ||||
Russia exit charges after-tax payment impacts | - | - | - | 2 | ||||
TCJA transition tax payment | - | - | 126 | 68 | ||||
Manufactured PFAS products impact | (104) | (44) | (157) | (36) | ||||
Total adjustments for special items | 277 | 191 | 1,062 | 813 | ||||
Adjusted net cash provided by (used in) operating activities (non-GAAP measure)8
|
$ | 2,263 | $ | 2,113 | $ | 7,742 | $ | 6,404 |
Purchases of property, plant and equipment (PPE) | (358) | (506) | (1,615) | (1,749) | ||||
Manufactured PFAS products impact - removing related purchases of PPE | 50 | 52 | 167 | 175 | ||||
Adjusted purchases of PPE (non-GAAP measure)8
|
$ | (308) | $ | (454) | $ | (1,448) | $ | (1,574) |
Adjusted free cash flow (non-GAAP measure)8
|
$ | 1,955 | $ | 1,659 | $ | 6,294 | $ | 4,830 |
Adjusted net income (loss) attributable to 3M (non-GAAP measure)5
|
$ | 1,344 | $ | 1,207 | $ | 5,122 | $ | 5,607 |
Adjusted free cash flow conversion (non-GAAP measure)8
|
145 | % | 137 | % | 123 | % | 86 | % |
(Dollars in billions) |
Full year 2024 forecast
|
Net cash provided by (used in) operating activities7
|
$6.5 to $7.1
|
Adjustments for special items7
|
- |
Adjusted net cash provided by (used in) operating activities |
$6.5 to $7.1
|
Purchase of property, plant and equipment (PPE) |
($1.5 to $1.7)
|
Manufactured PFAS products impact - removing related purchases of PPE |
~$0.1
|
Adjusted purchases of PPE (non-GAAP measure)8
|
($1.4 to $1.6)
|
Adjusted free cash flow7,8
|
$4.9to $5.7
|
Net income (loss) attributable to 3M7
|
$5.2 to $5.4
|
Adjustments for special items7
|
- |
Adjusted net income (loss) attributable to 3M5,7
|
$5.2 to $5.4 |
Adjusted free cash flow conversion7,8
|
95% to 105%
|
Adjusted EBITDA (non-GAAP measure)9
|
Adjusted EBITDA margin (non-GAAP measure)9
|
||||||||||||||
Three months ended December 31, |
Year ended December 31, |
Three months ended December 31, |
Year ended December 31, |
||||||||||||
(Dollars in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||
Safety and Industrial | $ | 670 | $ | 697 | $ | 2,938 | $ | 3,115 | 25.2% | 25.5% | 26.8% | 26.8% | |||
Transportation and Electronics | 449 | 380 | 1,826 | 1,946 | 25.4% | 22.4% | 25.3% | 25.7% | |||||||
Health Care | 520 | 574 | 2,200 | 2,422 | 25.5% | 28.1% | 26.8% | 28.8% | |||||||
Consumer | 258 | 249 | 1,064 | 1,126 | 21.1% | 20.0% | 21.2% | 21.3% | |||||||
Corporate and Unallocated | 149 | 17 | 119 | 101 | |||||||||||
Total Company | $ | 2,046 | $ | 1,917 | $ | 8,147 | $ | 8,710 | 26.6% | 24.8 | % | 26.0 | % | 26.5 | % |
Three months ended December 31, |
Year ended December 31, |
|||||||
Adjusted EBITDA (non-GAAP measure) (dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||
Adjusted net sales (non-GAAP measure)5
|
$ | 7,693 | $ | 7,716 | $ | 31,392 | $ | 32,878 |
Net income (loss) attributable to 3M | 945 | 541 | (6,995) | 5,777 | ||||
Add/(subtract): | ||||||||
Net income/(loss) attributable to noncontrolling interest | 2 | 2 | 16 | 14 | ||||
(Income)/loss from unconsolidated subsidiaries, net of taxes | (11) | (8) | (18) | (11) | ||||
Provision for income taxes | 64 | 62 | (2,691) | 612 | ||||
Other expense/(income): | ||||||||
Interest (Income)/expense | 279 | 84 | 689 | 395 | ||||
Pension & OPEB non-service cost (benefit) | (36) | (49) | (129) | (248) | ||||
Depreciation and amortization (DA) expense | 537 | 460 | 1,987 | 1,831 | ||||
Adjustments for special items: | ||||||||
Net costs for significant litigation | 77 | 58 | 14,869 | 2,291 | ||||
Manufactured PFAS products impact: | ||||||||
Remove manufactured PFAS products operating (income) loss | 151 | 732 | 205 | 631 | ||||
Subtract PFAS-related amount included in DA above | (99) | (19) | (228) | (68) | ||||
Gain on business divestitures
|
- | - | (36) | (2,724) | ||||
Divestiture-related restructuring actions
|
- | - | - | 41 | ||||
Russia exit charges (benefits)
|
- | - | (18) | 109 | ||||
Divestiture costs | 137 | 54 | 496 | 60 | ||||
Total special items | 266 | 825 | 15,288 | 340 | ||||
Adjusted EBITDA (non-GAAP measure)9
|
$ | 2,046 | $ | 1,917 | $ | 8,147 | $ | 8,710 |
Adjusted EBITDA margin (non-GAAP measure)9
|
26.6 | % | 24.8 | % | 26.0 | % | 26.5 | % |
Adjusted EBITDA (non-GAAP measure)
Three months ended December 31, 2023 (dollars in millions) |
Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Total Company | ||||||
Adjusted net sales (non-GAAP measure)5
|
$ | 2,661 | $ | 1,769 | $ | 2,037 | $ | 1,226 | $ | - | $ | 7,693 |
Business segment operating income (loss) (measure of segment operating performance), adjusted for special items (non-GAAP measure)5
|
$ | 524 | $ | 370 | $ | 372 | $ | 221 | $ | 121 | $ | 1,608 |
Add/(subtract): | ||||||||||||
Add depreciation and amortization (DA) expense | 146 | 178 | 148 | 37 | 28 | 537 | ||||||
Subtract PFAS-related amount included in DA above | - | (99) | - | - | - | (99) | ||||||
Adjusted EBITDA (non-GAAP measure)9
|
$ | 670 | $ | 449 | $ | 520 | $ | 258 | $ | 149 | $ | 2,046 |
Adjusted EBITDA margin (non-GAAP measure)9
|
25.2 | % | 25.4 | % | 25.5 | % | 21.1 | % | 26.6 | % | ||
Adjusted EBITDA (non-GAAP measure)
Three months ended December 31, 2022 (dollars in millions) |
Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Total Company | ||||||
Adjusted net sales (non-GAAP measure)5
|
$ | 2,735 | $ | 1,692 | $ | 2,044 | $ | 1,244 | $ | 1 | $ | 7,716 |
Business segment operating income (loss) (measure of segment operating performance), adjusted for special items (non-GAAP measure)5
|
$ | 556 | $ | 291 | $ | 412 | $ | 212 | $ | 5 | $ | 1,476 |
Add/(subtract): | ||||||||||||
Add depreciation and amortization (DA) expense | 141 | 108 | 162 | 37 | 12 | 460 | ||||||
Subtract PFAS-related amount included in DA above | - | (19) | - | - | - | (19) | ||||||
Adjusted EBITDA (non-GAAP measure)9
|
$ | 697 | $ | 380 | $ | 574 | $ | 249 | $ | 17 | $ | 1,917 |
Adjusted EBITDA margin (non-GAAP measure)9
|
25.5 | % | 22.4 | % | 28.1 | % | 20.0 | % | 24.8 | % |
Adjusted EBITDA (non-GAAP measure)
Year ended December 31, 2023 (dollars in millions) |
Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Total Company | ||||||
Adjusted net sales (non-GAAP measure)5
|
$ | 10,956 | $ | 7,212 | $ | 8,195 | $ | 5,026 | $ | 3 | $ | 31,392 |
Business segment operating income (loss) (measure of segment operating performance), adjusted for special items (non-GAAP measure)5
|
$ | 2,408 | $ | 1,517 | $ | 1,603 | $ | 904 | $ | (44) | $ | 6,388 |
Add/(subtract): | ||||||||||||
Add depreciation and amortization (DA) expense | 530 | 537 | 597 | 160 | 163 | 1,987 | ||||||
Subtract PFAS-related amount included in DA above | - | (228) | - | - | - | (228) | ||||||
Adjusted EBITDA (non-GAAP measure)9
|
$ | 2,938 | $ | 1,826 | $ | 2,200 | $ | 1,064 | $ | 119 | $ | 8,147 |
Adjusted EBITDA margin (non-GAAP measure)9
|
26.8 | % | 25.3 | % | 26.8 | % | 21.2 | % | 26.0 | % | ||
Adjusted EBITDA (non-GAAP measure)
Year ended December 31, 2022 (dollars in millions) |
Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Total Company | ||||||
Adjusted net sales (non-GAAP measure)5
|
$ | 11,604 | $ | 7,551 | $ | 8,427 | $ | 5,292 | $ | 4 | $ | 32,878 |
Business segment operating income (measure of segment operating performance), adjusted for special items (non-GAAP measure)5
|
$ | 2,549 | $ | 1,604 | $ | 1,799 | $ | 978 | $ | 17 | $ | 6,947 |
Add/(subtract): | ||||||||||||
Add depreciation and amortization (DA) expense | 566 | 410 | 623 | 148 | 84 | 1,831 | ||||||
Subtract PFAS-related amount included in DA above | - | (68) | - | - | - | (68) | ||||||
Adjusted EBITDA (non-GAAP measure)9
|
$ | 3,115 | $ | 1,946 | $ | 2,422 | $ | 1,126 | $ | 101 | $ | 8,710 |
Adjusted EBITDA margin (non-GAAP measure)9
|
26.8 | % | 25.7 | % | 28.8 | % | 21.3 | % | 26.5 | % |
Net Debt (non-GAAP measure) | December 31, 2023 | December 31, 2022 | ||
Total debt | $ | 16,035 | $ | 15,939 |
Less: Cash, cash equivalents and marketable securities | 6,006 | 3,916 | ||
Net debt (non-GAAP measure)10
|
$ | 10,029 | $ | 12,023 |
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3M Company published this content on 23 January 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 January 2024 11:38:09 UTC.