3M First-Quarter Results

Highlights :

• Company delivers strong first quarter results:
  • Sales of $8.0 billion, down 0.3% YoY; adjusted sales of $7.7 billion with organic growth up ~1% YoY
  • GAAP earnings per share of $1.67, down 5% YoY; adjusted earnings of $2.39, up double digits YoY
• Successfully completed the spin of Solventum on April 1st
• Named William "Bill" Brown as CEO effective May 1st; Mike Roman will become Executive Chairman

3M has reported first-quarter results and initiated its 2024 financial earnings outlook reflecting Solventum as a discontinued operation for the full-year, including Q1.

"We delivered results that were better than our expectations as we returned to organic growth and achieved double digit adjusted earnings growth. We improved performance in our businesses through strong operational execution, completed the spin-off of Solventum, and finalised two major legal settlements," said 3M chairman and CEO Mike Roman. "The progress we have made in executing our strategic priorities, positions the company for long-term shareholder value creation as Bill Brown assumes the role of 3M CEO."

First-Quarter:

• Q1 2024 results are reported inclusive of the Health Care business segment, on the same basis on which 3M provided its first-quarter guidance.

• GAAP earnings per share of $1.67 and operating margin of 18.8%.
• Adjusted EPS of $2.39, up 21 percent year-on-year.
• Adjusted operating income margin of 21.9%, an increase of 4.0 percentage points year-on-year.

• Sales of $8.0 billion, down 0.3 percent year-on-year, with organic sales flat year-on-year.
• Adjusted sales of $7.7 billion, up 0.5 percent year-on-year with adjusted organic sales increase of 0.8 percent year-on-year.
• Operating cash flow of $0.8 billion; adjusted free cash flow of $0.8 billion.
• 3M returned $835 million to shareholders via dividends.

3M Completes Spin-off of Solventum

On April 1, 3M completed the planned spin-off of its health care business, which formally launched Solventum Corporation as an independent company. Solventum is listed on the New York Stock Exchange as SOLV. 3M retained 19.9% of the outstanding shares of Solventum common stock, which will be monetized within five years following the spin-off.

Solventum Corporation's financial reporting will differ from the basis of presentation used by 3M for the Health Care segment.