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Mar 31, 2024
3M Q1 2024 Earnings Report
Reported strong first quarter results driven by operational performance and the completion of Solventum spin-off.
Key Takeaways
3M delivered better-than-expected results in Q1 2024, returning to organic growth and achieving double-digit adjusted earnings growth. The company completed the spin-off of Solventum and finalized major legal settlements, positioning it for long-term shareholder value creation.
Sales of $8.0 billion, down 0.3% year-over-year; adjusted sales of $7.7 billion with organic growth up approximately 1% year-over-year.
GAAP earnings per share of $1.67, down 5% year-over-year; adjusted earnings of $2.39, up double digits year-over-year.
Successfully completed the spin of Solventum on April 1st.
Initiated full-year 2024 guidance reflecting completion of Solventum spin.
3M
3M
Forward Guidance
3M initiated full-year 2024 expectations, reflecting Solventum as a discontinued operation. Adjusted total sales growth is expected to be between -0.25% and +1.75%, with adjusted organic sales growth flat to +2%. Adjusted earnings per share are projected to be between $6.80 and $7.30.
Positive Outlook
- Adjusted total sales growth between -0.25% and +1.75%
- Adjusted organic sales growth flat to +2%
- Adjusted earnings per share between $6.80 and $7.30
- Dividend payout ratio is expected to be approximately 40% of adjusted free cash flow
- Second-quarter dividend is expected to be declared in May 2024
Challenges Ahead
- Cannot forecast certain items required to develop meaningful comparable GAAP financial measures without unreasonable effort.
- Limitations in predictability of timing, ultimate outcome and numerous conditions outside of 3M’s control
- Does not include the impact of potentially-divested or acquired businesses on expected operations in forecasted outlook guidance it provides until close of a transaction.
- Worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company's control, including inflation, recession, military conflicts, and natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers
- Tax-related external conditions, including changes in tax rates, laws or regulations