3M Q3 2022 Earnings Report
Key Takeaways
3M reported Q3 2022 results with GAAP earnings per share of $6.77 and adjusted earnings per share of $2.69. Sales were $8.6 billion, down 4 percent year-on-year, impacted by divestitures and foreign currency translation. Organic sales growth was 2 percent, including a headwind from declining respirator demand. The company updated its full-year sales and earnings expectations to reflect the strengthening U.S. dollar and the uncertain macroeconomic environment.
GAAP earnings per share were $6.77, and adjusted earnings per share was $2.69.
Sales reached $8.6 billion, a 4% decrease year-over-year due to divestitures and currency translation.
Organic sales grew by 2%, but were impacted by a decline in disposable respirator demand.
3M updated its full-year sales and earnings expectations to reflect the strengthening U.S. dollar and uncertain macroeconomic conditions.
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3M Revenue by Segment
Forward Guidance
3M updated its full-year sales and earnings expectations to reflect the continued strengthening of the U.S. dollar and the uncertain macroeconomic environment.
Positive Outlook
- Focus on investments for growth, productivity, and sustainability.
- Active portfolio management, including the divestiture of the food safety business.
- Plans to spin off the Health Care business into a separate public company.
- Expects operating cash flow of $6.8 to $7.4 billion.
- Anticipates adjusted free cash flow conversion of 85% to 95%.
Challenges Ahead
- Total sales growth is expected to be -3.5% to -3.0%.
- Organic sales growth is projected to be 1.5% to 2.0%.
- Acquisition and divestiture sales growth is estimated at -0.5%.
- Foreign currency translation impact on sales is expected to be -4.5%.
- Adjusted earnings per share are forecasted to be $10.10 to $10.35.
Revenue & Expenses
Visualization of income flow from segment revenue to net income