3M reports sales decline
In its October 24 third quarter reporting, 3M said sales of $8.3 billion represented a 3.6% decline year-on-year, with organic sales declining 3.7% year-on-year.
"We are building momentum through strong operational executionm," said 3M Chairman and CEO Mike Roman. "In the third quarter 3M again delivered for our customers in an uncertain environment, positioning us for a solid close to 2023. Our actions led to underlying earnings ahead of our expectations, as well as better than expected margins and cash flow.
"Our results reflect continued execution of our priorities -- driving operational performance, spinning off Health Care, and reducing risk and uncertainty. Our strengths in material science innovation align with global trends in high-growth markets and sustainability, enabling us to develop indispensable products in attractive areas such as automotive electrification, climate technology, and industrial automation."
Highlights:
- GAAP loss per share of $3.74 and operating margin of minus 31.9% include the previously announced settlement for Combat Arms, resulting in a pre-tax charge of $4.2 billion, negatively impacting EPS by $5.80.
- Adjusted EPS of $2.68 includes pre-tax restructuring related charges of $68 million, or negative $0.10 per share; restructuring program on track including forecasted full-year 2023 pre-tax restructuring charges and associated benefits.
- Adjusted EPS up 3 percent year-on-year.
- Adjusted operating income margin of 23.2% includes a 0.8 percentage point headwind from pre-tax restructuring related charges.
- Adjusted operating income margin expanded 1.6 percentage points year-on-year.
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