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:
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Q2 2024 |
Q2 2023 |
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GAAP EPS from continuing operations (GAAP EPS) |
$ 2.17 |
$ (12.94) |
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Special items: |
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Net costs for significant litigation |
0.44 |
14.43 |
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(Increase) decrease in value of Solventum ownership |
(2.00) |
— |
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Pension risk transfer charge |
1.09 |
— |
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Other special items, net |
0.23 |
(0.10) |
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Adjusted EPS from continuing operations (Adjusted EPS) |
$ 1.93 |
$ 1.39 |
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Memo: |
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GAAP operating income margin |
20.3 % |
(148.9) % |
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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.
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GAAP |
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Adjusted (Non-GAAP) |
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Net sales (Millions) |
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$6,255 |
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$6,019 |
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Sales change |
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Total sales |
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(0.5) % |
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1.1 % |
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Components of sales change: |
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Organic sales1 |
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(0.3) % |
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1.2 % |
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Acquisitions/divestitures |
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1.2 % |
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1.3 % |
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Translation |
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(1.4) % |
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(1.4) % |
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Adjusted sales excludes manufactured PFAS products. |
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1Above adjusted organic sales increase includes a 120 basis point headwind from product portfolio initiatives and exit |
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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.
