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Dec 31, 2023

3M Q4 2023 Earnings Report

3M delivered strong fourth-quarter results, improved operational performance, and exceeded earnings and cash flow expectations.

Key Takeaways

3M reported a decrease in sales by 0.8 percent year-on-year, with sales of $8.0 billion. GAAP earnings per share was $1.70, and adjusted EPS was $2.42, up 11 percent year-on-year. The company's operating cash flow was $2.0 billion, up 3 percent year-on-year, and adjusted free cash flow was $2.0 billion, up 18 percent year-on-year.

GAAP earnings per share of $1.70 and operating margin of 15.5%.

Adjusted EPS of $2.42 includes pre-tax restructuring related net charges of $109 million, or negative $0.17 per share.Adjusted EPS up 11 percent year-on-year.

Adjusted operating income margin of 20.9% includes a 1.4 percentage point headwind from restructuring related net charges. Adjusted operating income margin expanded 1.8 percentage points year-on-year.

Sales of $8.0 billion, down 0.8 percent year-on-year, with organic sales decline of 1.9 percent year-on-year.

Total Revenue
$8.01B
Previous year: $8.08B
-0.8%
EPS
$2.42
Previous year: $2.28
+6.1%
Organic Revenue Growth
-1.9%
Previous year: 0.4%
-575.0%
Gross Profit
$3.34B
Previous year: $3.49B
-4.6%
Cash and Equivalents
$5.93B
Previous year: $3.66B
+62.3%
Free Cash Flow
$1.96B
Previous year: $1.42B
+38.1%
Total Assets
$50.6B
Previous year: $46.5B
+8.9%

3M

3M

3M Revenue by Segment

Forward Guidance

3M provided the following full-year 2024 expectations.

Positive Outlook

  • Adjusted total sales growth in the range of 0.25 to 2.25 percent, reflecting adjusted organic sales growth of flat to up 2 percent.
  • Adjusted EPS in the range of $9.35 to $9.75.
  • Adjusted operating cash flow of $6.5 to $7.1 billion, contributing to 95 to 105 percent adjusted free cash flow conversion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income