3M delivers strong Q4 results
3M reported fourth quarter sales of $8.0 billion, down 0.8% year-on-year, with organic sales decline of 1.9% year-on-year.
Adjusted sales were $7.7 billion, down 0.3% year-on-year with adjusted organic sales decline of 1.4 percent year-on-year. Operating cash flow was $2.0 billion, up 3% year-on-year; and adjusted free cash flow was $2.0 billion, up 18% year-on-year.
3M returned $828 million to shareholders via dividends.
"The fourth quarter capped a strong year for 3M," said 3M Chairman and CEO Mike Roman. "Throughout 2023, we executed our priorities and delivered on our commitments – including expanding underlying operating margins and cash flow. We initiated actions to restructure our organization and simplify our supply chain, while progressing our Health Care spin and addressing legal matters."
"Our team remains focused on further improving our operational performance, optimizing our portfolio, and reducing risk," Roman continued. "We will continue to invest in high-growth markets where 3M's unique capabilities can make a difference, including automotive electrification, climate technology, and industrial automation. I am confident we will deliver a successful 2024."
For the full year, the company reported the following:
- GAAP loss per share of $12.63 and operating margin of minus 27.9% includes the previously announced settlements for CAE and PWS in the United States regarding PFAS, resulting in a pre-tax charges of $4.3 billion and $10.5 billion, respectively, negatively impacting EPS by a total of $20.39.
- Adjusted EPS of $9.24 includes pre-tax restructuring related net charges of $441 million, or negative $0.65 per share.
- Adjusted operating income margin of 20.3% includes a 1.4 percentage point headwind from restructuring related net charges.
- Well-positioned to continue improving performance, including continued expansion of adjusted operating margins3 in 2024
- Health Care spin remains on track for first half of 2024
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
