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Mar 31, 2023

3M Q1 2023 Earnings Report

Reported first quarter results and announced restructuring actions to strengthen the company.

Key Takeaways

3M reported a decrease in sales and earnings per share for the first quarter of 2023, but operating cash flow increased. The company announced restructuring actions expected to yield $700 to $900 million in annual pre-tax savings.

GAAP earnings per share of $1.76.

Adjusted earnings per share of $1.97, excluding the impact of special items.

Sales of $8.0 billion, down 9.0 percent year-on-year, with organic sales decline of 4.9 percent year-on-year.

Operating cash flow was $1.3 billion, up 26 percent year-on-year, while adjusted free cash flow was $0.9 billion, up 24 percent year-on-year.

Total Revenue
$8.03B
Previous year: $8.83B
-9.0%
EPS
$1.97
Previous year: $2.65
-25.7%
Organic Revenue Growth
-4.9%
Previous year: 0.02%
-24600.0%
Gross Profit
$3.42B
Previous year: $4B
-14.6%
Cash and Equivalents
$3.82B
Previous year: $3.25B
+17.8%
Free Cash Flow
$946M
Previous year: $587M
+61.2%
Total Assets
$46.9B
Previous year: $45.9B
+2.2%

3M

3M

3M Revenue by Segment

Forward Guidance

3M affirms its full-year expectations for 2023.

Positive Outlook

  • Adjusted earnings per share of $8.50 to $9.00
  • Adjusted operating cash flow of $5.8 to $6.3 billion
  • Adjusted free cash flow conversion of 90% to 100%

Challenges Ahead

  • Adjusted total sales growth of -6 to -2 percent
  • Adjusted organic sales growth of -3 percent to flat

Revenue & Expenses

Visualization of income flow from segment revenue to net income