3M Sales Down 4% in Latest Quarter

The conglomerate noted the effects of the strong dollar and a decline in disposable respirator sales.

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ST. PAUL, Minn. — 3M on Tuesday reported financial results for the third quarter of 2022.

"We continue to execute our strategies and deliver for our customers in a highly uncertain environment," said 3M chairman and CEO Mike Roman. "Excluding the impact of the decline in disposable respirator sales, our team posted over 3% organic growth. We delivered sequential and year-over-year margin expansion, amidst macroeconomic challenges and the strengthening U.S. dollar."

Third quarter highlights:

  • Company reports GAAP earnings per share of $6.77.
  • Adjusted earnings per share of $2.69, excluding the impact of special items.
  • Sales of $8.6 billion, down 4% year-on-year, which included impacts of -1% from divestitures and -5% percent from foreign currency translation due to the strength of the U.S. dollar.
  • Organic sales growth of 2% year-on-year which included a 1.4 percentage-point headwind from the decline in disposable respirator demand.
  • Operating cash flow was $1.5 billion, down 18% year-on-year, while adjusted free cash flow was $1.4 billion, down 16% year-on-year.
  • 3M returned $1 billion to shareholders via dividends and gross share repurchases.
  • Received approximately $1 billion in consideration and reduced outstanding shares by 16 million via exchange offer due to its Food Safety divestiture.

"We continue to position 3M for the future through investments for growth, productivity and sustainability, along with active portfolio management," Roman said. "This quarter we divested our food safety business and began executing the work-streams to successfully spin our Health Care business, resulting in two world-class, public companies."

3M updated its full-year sales and earnings expectations to reflect the continued strengthening of the U.S. dollar and the uncertain macroeconomic environment.

  • Total sales growth: -3.5 to -3.0 percent vs. -2.5 to -0.5 percent prior
  • Organic sales growth: 1.5 to 2.0 percent vs. 1.5 to 3.5 percent prior
  • Acquisition and divestiture sales growth: -0.5 percent vs. 0 percent prior
  • Foreign currency translation impact on sales: -4.5 percent vs. -4.0 percent prior
  • Adjusted earnings per share^: $10.10 to $10.35 vs. $10.30 to $10.80 prior
  • Operating cash flow of $6.8 to $7.4 billion contributing to 85% to 95% adjusted free cash flow conversion
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