Q3 2024 3M Co Earnings Call Transcript
Key Points
- 3M Co (MMM) reported strong third quarter results with non-GAAP earnings per share of $1.98, up 18% on 1% organic revenue growth.
- The company's overall margins increased by 140 basis points to 23%, and free cash flow was $1.5 billion with a conversion rate of 141%.
- 3M Co (MMM) returned $1.1 billion to shareholders during the quarter through dividends and share repurchases.
- The company raised the bottom end of its full-year earnings guidance by $0.20 to a range of $7.20 to $7.30 per share.
- 3M Co (MMM) is making progress in improving R&D effectiveness and efficiency, with new product launches expected to be up about 10% this year and further acceleration next year.
- 3M Co (MMM) is facing challenges with on-time in full (OTIF) delivery performance, which has led to lost business and fines.
- The company's forecast accuracy is running 10 to 15 points below expectations, impacting demand visibility and inventory management.
- Utilization of major assets in 3M Co (MMM)'s largest facilities is averaging around 50%, well below best-in-class companies.
- The company is experiencing ongoing market softness in certain divisions, such as automotive OEM and consumer retail discretionary spending.
- 3M Co (MMM) is dealing with headwinds from portfolio prioritization actions, which have impacted organic sales growth in the consumer business.
Ladies and gentlemen, thank you for standing by. Welcome to the 3M third quarter earnings conference call. (Operator Instructions) As a reminder, this call is being recorded Tuesday, October 22, 2024.
I would now like to turn the call over to Bruce Jermeland, Senior Vice President of Investor Relations at 3M.
Thank you, and good morning, everyone, and welcome to our third quarter earnings conference call. With me today are Bill Brown, 3M's Chief Executive Officer; and Anurag Maheshwari, our Chief Financial Officer. Bill and Anrak will make some formal comments, then we'll take your questions.
Please note that today's earnings release and slide presentation accompanying this call are posted on the homepage of our Investor Relations website at 3m.com. Please turn to slide 2. Please take a moment to read the forward-looking statement.
During today's conference call, we will be making certain predictive statements that reflect our current views about 3M's future performance and financial
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