Yahoo Finance 3M Company (NYSE:MMM) Q1 2024 Earnings Call Transcript
3M Company (NYSE:MMM) Q1 2024 Earnings Call Transcript April 30, 2024
3M Company misses on earnings expectations. Reported EPS is $1.67 EPS, expectations were $2.08. 3M Company isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Ladies and gentlemen, thank you for standing by. Welcome to the 3M First Quarter Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded Tuesday, April, 2024. I would now like to turn the call over to Bruce Jermeland, Senior Vice President of Investor Relations at 3M.
Bruce Jermeland: Thank you, and good morning, everyone. And welcome to our first quarter earnings conference call. With me today are Mike Roman, 3M’s Chairman and Chief Executive Officer; and Monish Patolawala, our President and Chief Financial Officer. Mike and Monish will make some formal comments then we will take your questions. Please note that today’s earnings release and slide presentation accompanying this call are posted on the home page 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 results.
These statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Item 1A of our most recent Form 10-K lists some of the most important risk factors that could cause actual results to differ from our predictions. Please note, throughout today’s presentation we will be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in the attachments to today’s press release. Please turn to Slide 3. During today’s presentation Mike and Monish will discuss our total company Q1 2024 results which are inclusive of the Health Care business and are on the same basis on which 3M provided first quarter guidance back in January. As we have mentioned, it is important to note that Solventum Corporation’s separate financial reporting will differ from the basis of presentation used by 3M for the Health Care segment.
3M’s full year 2024 earnings guidance initiated today is on a continuing operations basis, reflecting Solventum as discontinued operations for the full year, including the first quarter of 2024. In addition, we will be treating changes in the value of our 19.9% equity interest in Solventum as a special item in arriving at non-GAAP results, adjusted for special items. And finally, we are providing additional financial information this quarter in our press release and slide presentation given the impact of the Solventum spin. We hope that you find the information useful in understanding our Q1 performance and outlook for 2024. We also plan on filing additional information on a continuing operations basis including in late July or early August Form 8-Ks with recast 2023 Form 10-K and Q1 2024 Form 10-Q information.
Slide 4 for a summary of our updated post-spin financial reporting framework. Beginning with the second-quarter, Safety and Industrial, Transportation and Electronics, and Consumer business segment operating income will include the impact of the dis-synergies or stranded costs, previously associated with Solventum. In addition, we have added a new operating category named Other for Solventum Transition Service Agreement costs which 3M will be reimbursed for beginning here in April. Finally, Corporate and Unallocated will incorporate the commercial agreements between 3M and Solventum that started on April 1st. One final comment, in the appendix on Slide 27 you will find information on our Public Water Suppliers and Combat Arms legal settlements, including the pre-tax payment schedule by year, and total combined pre-tax present value and after-tax estimates.
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To continue reading the Q&A session, please click here.
