Published on: Friday, August 2, 2024

3M Delivers Strong Second-Quarter Results

Sales of $6.3 billion, down 0.5% YoY
Adjusted sales of $6.0 billion with organic growth up 1.2% YoY
GAAP EPS from continuing operations of $2.17, up 117% YoY
Adjusted EPS from continuing operations of $1.93, up 39% YoY
Operating cash flow of $1.0 billion with adjusted free cash flow of $1.2 billion
Updates full-year 2024 adjusted EPS from continuing operations to $7.00 to $7.30 from $6.80 to $7.30

3M has released its second-quarter results.

"We delivered another strong quarter with adjusted earnings growth up double-digits and robust cash generation. I want to thank 3M employees for their exceptional execution, which we expect to continue in the second half of the year," said William Brown, 3M Chief Executive Officer.

"As I look ahead, I am focused on three priorities: driving sustained organic revenue growth, increasing operational performance, and effectively deploying capital. I have long admired 3M's track record of innovation and am excited to be leading this great company and by the opportunities ahead."

Second-Quarter Highlights:

	Q2 2024	Q2 2023
GAAP EPS from continuing operations (GAAP EPS)	$ 2.17	$ (12.94)
Special items:
Net costs for significant litigation	0.44	14.43
(Increase) decrease in value of Solventum ownership	(2.00)	—
Pension risk transfer charge	1.09	—
Other special items, net	0.23	(0.10)
Adjusted EPS from continuing operations (Adjusted EPS)	$ 1.93	$ 1.39

Memo:
GAAP operating income margin	20.3 %	(148.9) %
Adjusted operating income margin	21.6 %	17.2 %

GAAP EPS of $2.17 and operating margin of 20.3%.

Adjusted EPS of $1.93, up 39% year-on-year.

Adjusted operating income margin of 21.6%, an increase of 4.4 percentage points year-on-year.

	GAAP	Adjusted (Non-GAAP)
Net sales (Millions)	$6,255	$6,019
Sales change
Total sales	(0.5) %	1.1 %
Components of sales change:
Organic sales¹	(0.3) %	1.2 %
Acquisitions/divestitures	1.2 %	1.3 %
Translation	(1.4) %	(1.4) %
Adjusted sales excludes manufactured PFAS products.
¹Above adjusted organic sales increase includes a 120 basis point headwind from product portfolio initiatives and exit of certain small countries.

Sales of $6.3 billion, down 0.5% year-on-year, with organic sales down 0.3% year-on-year.

Adjusted sales of $6.0 billion, up 1.1% year-on-year with adjusted organic sales up 1.2% year-on-year.

Operating cash flow of $1.0 billion; adjusted free cash flow of $1.2 billion.

3M returned $786 million to shareholders via dividends and share repurchases.

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