DewDiligence
3 months ago
3M reports 1Q24 results—issues 2024 ex-SOLV-spin guidance:
https://d1io3yog0oux5.cloudfront.net/_827c8a8b5aa9802496746200b47d1a06/3m/db/3222/30862/earnings_release/Q1+2024+Press+Release.pdf
3M spun off its healthcare segment into the new company, Solventum (Nasdaq: SOLV) on 4/1/23, so 3M’s 1Q24 results include that business segment. However, 3M’s new guidance for full-year 2024 results excludes the spun-off business and is on an apples-to-apples basis.
1Q24 sales were $8.0B, flat YoY. 1Q24 organic sales (excluding FX, acquisitions, and divestitures) were -1% YoY.
1Q24 non-GAAP EPS—which excludes the cost of the announced earplug and PFAS settlements and related legal expenses—was $2.39, up from $1.97 in 1Q23.
3M’s new ex-SOLV-spin 2024 guidance is as follows:
Non-GAAP EPS of $6.80-7.30. (The prior 2024 guidance including SOLV was $9.35-9.75; actual 2023 non-GAAP EPS was $9.24.)
Sales growth of -0.25% to +1.75%]/b].
Organic sales growth of 0-2.0%.
CC slides:
https://d1io3yog0oux5.cloudfront.net/_827c8a8b5aa9802496746200b47d1a06/3m/db/3222/30862/presentation/Q1+2024+Earnings+Presentation.pdf
Financial statements: https://d1io3yog0oux5.cloudfront.net/_827c8a8b5aa9802496746200b47d1a06/3m/db/3222/30862/financial_statement/Q1+2024+Supplemental+Financial+Schedules.pdf
eastunder
4 months ago
3M Company (MMM) recently completed the previously announced spin-off of its healthcare business into a separate public company. The spun-off entity, which is renamed Solventum Corporation, is listed on the NYSE under the ticker SOLV.
https://www.zacks.com/stock/news/2249069/3m-mmm-completes-divestiture-of-its-healthcare-business
MMM’s shares increased 6% yesterday to eventually close the trading session at $94.02.
MMM shareholders received one share of Solventum stock for every four shares of 3M stock held on the record date for the distribution, Mar 18, 2024. The distribution is proposed to be tax-free to MMM’s shareholders. It’s worth noting that 19.9% of outstanding shares of Solventum stock were retained by 3M and will be monetized within five years after completion of the spin-off.
The spin-off of 3M and its healthcare unit will facilitate each entity to flourish through better operational focus, capital allocation policies and financial flexibility. Solventum will serve a global addressable market worth about $93 billion, which is expected to grow in the range of 4-6% through 2026. The new entity will operate through four operating segments, which are Medical Surgical, Dental Solutions, Health Information Systems and Purification & Filtration.
DewDiligence
4 months ago
3M announces new CEO effective 5/1/24:
https://finance.yahoo.com/news/3m-announces-leadership-appointments-103000708.html 3M today announced that William M. "Bill" Brown is appointed chief executive officer, effective May 1, 2024. He succeeds Michael Roman, who is appointed to the role of Executive Chairman of the 3M Board of Directors, also effective May 1, 2024.
…Brown, 61, is the former Chairman of the Board and Chief Executive Officer of L3Harris Technologies, a global innovator in aerospace and defense technology solutions, where he served as chief executive officer and chairman, and then executive chair from June 2019 to June 2022. Brown previously served as chairman, president, and chief executive officer of Harris Corporation prior to its merger with L3 Technologies in 2019. He joined Harris Corporation in November 2011 as president and chief executive officer. Prior to Harris Corporation, Brown spent 14 years at United Technologies Corporation (UTC) serving in a variety of leadership roles.
Roman will continue to chair 3M's Board of Directors and provide insights from his more than 35 years with 3M to the company's strategic direction as executive chairman of the board. He has served as 3M's CEO since July 2018. Roman might not have been a bad CEO, but bad things happened to the company on his watch, so he gets the blame. The stock is +5% in PM trading.
DewDiligence
6 months ago
3M reports 4Q23 results—issues (tepid) 2024 guidance:
https://investors.3m.com/news-events/press-releases/detail/1821/3m-delivers-strong-fourth-quarter-results-improves
4Q23 non-GAAP EPS—which excludes the cost of the announced earplug and PFAS settlements and related legal expenses —was $2.42, +11% YoY.
4Q23 sales were $8.0B, -0.8% YoY.
4Q23 organic sales growth (excluding FX, acquisitions, and divestitures) was -1.9% YoY.
3M issued 2024 non-GAAP EPS guidance—which excludes the cost of the announced earplug and PFAS settlements and related legal expenses—of $9.35-9.75, +1-6% YoY vs $9.24 in 2023.
2024 guidance for sales growth is 0.25-2.25%. 2024 guidance for organic sales growth is 0-2.0%.
3M’s healthcare spin-off, Solventum, is still slated to occur during 1H24; see #msg-173243340 for related info.
CC slides:
https://d1io3yog0oux5.cloudfront.net/_b81fdcf4b61b3aa85cc07b8e46d6f76a/3m/db/3222/30800/presentation/Q4+2023+Earnings+Slides.pdf
Financial statements:
https://d1io3yog0oux5.cloudfront.net/_b81fdcf4b61b3aa85cc07b8e46d6f76a/3m/db/3222/30800/financial_statement/Q4+2023+Financial+Statement+Information.pdf
DewDiligence
11 months ago
3M close_to_inking $5.5B earplug settlement, according_to_sources:
https://www.wsj.com/business/3m-nears-settlement-for-about-5-5-billion-to-resolve-earplugs-complaints-94e9f31e 3M and plaintiffs attorneys are nearing a settlement that would resolve hundreds of thousands of claims by veterans that earplugs made by the company and a subsidiary failed to protect them from hearing loss. Under the terms being discussed, 3M would pay about $5.5 billion, people close to the discussions said.
…The earplug litigation has become the largest mass tort in U.S. history, with more than 300,000 claims. Veterans allege that 3M and Aearo Technologies, a company 3M acquired in 2008, produced faulty earplugs that failed to protect their hearing from noise damage when issued to them by the U.S. military. 3M is contesting the cases, and has said the earplugs work correctly when used with proper training.
The settlement amount being considered is substantially less than the $10 billion to $15 billion that some analysts have predicted the case would cost 3M. The possible settlement was earlier reported by Bloomberg News. This is hugely bullish for 3M if it pans out.
DewDiligence
12 months ago
3M reports 2Q23 results—raises non-GAAP EPS guidance slightly…
PR:
https://investors.3m.com/news-events/press-releases/detail/1790/3m-reports-second-quarter-2023-results-proactive
CC slides:
https://d1io3yog0oux5.cloudfront.net/_42242654f7d5954ba2f4fd7c7044914f/3m/db/3222/30683/presentation/Q2+2023+Earnings+Presentation.pdf
2Q23 non-GAAP EPS was $2.17, down from $2.45 in 2Q22; however, 2Q23 cash flow from operations was +34% YoY due, in large part, to cost-cutting initiatives (#msg-171766597), which raised operating margins by 140 basis points YoY.
2Q23 sales of $8.33B were -4% YoY, but exceeded consensus expectations.
3M raised 2023 non-GAAP EPS guidance (which excludes the $10.3B+ PFAS settlement announced in June [#msg-172192818]) to $8.60-9.10 (up $0.10 from the prior range of $8.50-$9.00).
3M’s healthcare spin-off remains on track for closing in 2023.