3M has reported third-quarter 2022 results. Highlights from the report are as follows:

  • Sales of $8.6 billion, down 4% year-on-year, which included impacts of negative 1% from divestitures and negative 5% from foreign currency translation due to strength of U.S. dollar.
  • Organic sales growth of 2% year-on-year which included a 1.4% 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 $1.0 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 Food Safety divestiture.
  • GAAP earnings per share of $6.77.
  • Adjusted earnings per share of $2.69, excluding the impact of special items.

“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.”

“We continue to position 3M for the future through investments for growth, productivity and sustainability, along with active portfolio management,” Roman continued. “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% vs. -2.5% to -0.5%
  • Organic sales growth: 1.5% to 2.0% vs. 1.5% to 3.5% prior
  • Acquisition and divestiture sales growth: -0.5% vs. 0% prior
  • Foreign currency translation impact on sales: -4.5% vs. -4.0% 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

Source: 3M