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3M Co. (NYSE: MMM) has reported robust second-quarter results for 2024, with several key metrics showing significant improvement.

The company’s sales reached $6.3 billion, a slight decline of 0.5% year-over-year. Adjusted sales, which exclude manufactured PFAS products, were $6.0 billion, reflecting an organic growth of 1.2% year-over-year. This performance indicates a modest but positive growth trajectory amidst challenging market conditions.

The company’s earnings per share (EPS) from continuing operations saw a substantial increase. GAAP EPS rose to $2.17, marking a 117% year-over-year increase, while adjusted EPS climbed to $1.93, up 39% from the previous year. Operating cash flow was reported at $1.0 billion, with adjusted free cash flow at $1.2 billion. These figures underscore 3M’s strong cash generation capabilities and efficient operational execution.

CEO William Brown expressed his gratitude towards 3M employees for their exceptional performance, emphasizing the company’s focus on driving sustained organic revenue growth, enhancing operational performance, and effectively deploying capital. Brown’s optimism about the future is rooted in 3M’s long-standing track record of innovation and the promising opportunities ahead.
 

3M Beats EPS and Revenue Forecasts in Q2

When comparing 3M’s current performance against market expectations, the company has exceeded projections. Analysts had anticipated an EPS of $1.67, but 3M delivered an adjusted EPS of $1.93, surpassing expectations by a significant margin. This 39% year-over-year increase in adjusted EPS highlights 3M’s ability to outperform even in a competitive and volatile market environment.

Revenue expectations were set at $5.87 billion, but 3M reported actual sales of $6.3 billion, again exceeding forecasts. Even after adjusting for certain items, the adjusted sales figure of $6.0 billion still surpasses the expected revenue.

The company’s GAAP operating income margin also improved significantly, standing at 20.3% compared to a negative margin in the previous year. The adjusted operating income margin increased by 4.4 percentage points year-over-year to 21.6%. These improvements in profitability metrics reflect 3M’s successful cost management and operational efficiency strategies.
 

3M Ups Guidance for Full Year 2024

3M has updated its full-year 2024 earnings guidance based on the strong operational execution observed in the first half of the year. The company now expects adjusted EPS from continuing operations to be in the range of $7.00 to $7.30, up from the previous forecast of $6.80 to $7.30. This revision indicates 3M’s confidence in its ability to sustain its growth momentum and deliver strong financial performance.

The company maintained its adjusted total sales growth forecast at a range of -0.25% to +1.75% and its adjusted organic sales growth outlook at flat to +2%. These stable projections suggest that 3M anticipates continued steady performance despite potential market fluctuations and economic challenges. The company’s strategic focus on innovation and operational excellence is expected to drive these results.

3M’s commitment to returning value to shareholders remains evident, as the company returned $786 million to shareholders through dividends and share repurchases in the second quarter.

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