3M has reported first-quarter 2022 results.

“In a challenging global environment, 3M delivered a strong start to 2022 with solid growth, operating margins, and robust cash generation,” said 3M chairman and chief executive officer Mike Roman. “In response to feedback from our shareholders and to provide additional clarity on the strength of our underlying business performance, starting in the first quarter we are reporting adjusted earnings to exclude costs for significant litigation. These included, as we communicated on March 30th, the announced additional investment related to Zwijndrecht, which resulted in a 26-cent charge, along with costs related to other significant litigation of 13-cents in the first quarter. Excluding the Zwijndrecht investment our financial outlook for 2022 remains unchanged.

“We continue to prioritize actions to better serve our customers while managing supply chain and inflationary challenges,” Roman continued. “Our balance sheet remains strong and we continued to invest in capital expenditures and R&D to support long-term growth and advance our sustainability commitments, while also returning significant cash to shareholders. Looking ahead, our teams will continue to focus on improving our operational performance and delivering value for our customers and shareholders.”

First-Quarter Highlights

  • Sales of $8.8 billion, down 0.3% year-on-year, which included organic sales growth of 2% year-on-year.
  • GAAP earnings per share were $2.26, down 18% year-on-year. Adjusted earnings per share were $2.65, down 10% year-on-year.
  • Operating cash flow was $1.0 billion, down 40% year-on-year, while adjusted free cash flow was $0.7 billion, down 50% year-on-year.
  • 3M returned $1.6 billion to shareholders via dividends and gross share repurchases, up 49% year-on-year.

Full-Year 2022 Outlook

While the macroeconomic and geopolitical environment remains challenging and fluid, 3M continues to manage and navigate the headwinds facing its businesses. The company updated its full-year 2022 GAAP earnings outlook to incorporate the previously referenced first-quarter charge of $0.26 per share for Zwijndrecht-related PFAS environmental commitments. Excluding this Zwijndrecht investment, our full-year 2022 financial outlook remains unchanged.

3M now expects its full-year 2022 GAAP earnings per share to be in the range of $9.89 to $10.39 versus a prior expectation of $10.15 to $10.65. Full-year 2022 adjusted earnings is expected to be in the range of $10.75 to $11.25 per share, excluding estimated impacts from special items. The company’s full-year organic sales growth and free cash flow conversion ranges remain unchanged.

To view the full release, visit the 3M website. 

Source: 3M