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.
| Q3 2022 | Q3 2021 | |||||
| GAAP EPS | $ 6.77 | $ 2.45 | ||||
| Special Items | (4.08) | 0.13 | ||||
| Adjusted EPS | $ 2.69 | $ 2.58 | ||||
| Memo: | ||||||
| GAAP operating income margin | 48.2 % | 20.0 % | ||||
| Adjusted operating income margin | 21.5 % | 21.1 % | ||||
| See the “Supplemental Financial Information Non-GAAP Measures” section for applicable information. |
- Sales of $8.6 billion, down 4 percent year-on-year, which included impacts of negative 1 percent from divestitures and negative 5 percent from foreign currency translation due to strength of U.S. dollar.
- Organic sales growth of 2 percent 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 percent year-on-year, while adjusted free cash flow was $1.4 billion, down 16 percent 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.
ST. PAUL, Minn. — 3M (NYSE: MMM) today reported third-quarter 2022 results.
“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 percent 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 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^
See the “Supplemental Financial Information Non-GAAP Measures” section for applicable information.
^ As further discussed at * therein, 3M cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP financial measures and, therefore, does not provide them on a forward-looking basis reflecting these items.
