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Your second piece on where are we starting to see margin, as you have seen coming into the second quarter, one of the reasons for us able to beat expectations in the second quarter was driving supply chain efficiency.
So factories started to heal better, raw materials started to flow better which allowed us to have longer runs. But at the same time, the work that the supply chain team has done under
margins ok , on supply chain ikmpfrovenment
Transcript
2023 Q2
28 Jul 23
And I would say picking up on inventory in the channel, we see destocking in a slowdown like this.
And so we expect some destocking to continue in the electronics channel.
So as we go into third quarter, that's kind of forming the view that we have.
Now what would we need to see? We would need to see a turnaround in demand in those particular build rates in those end markets. And we'll see, I think, confidence show up in the inventory in the channel as well.
CE still weak
Transcript
2023 Q2
28 Jul 23
And overall, the trends that we see make us feel that where we are right now in the first half and where we see trends going in the second half, we feel that from a revenue guide basis, we'll be at the lower end of our guide that we had given which was flat to minus 3% coming into the year.
low end of guide
Transcript
2023 Q2
28 Jul 23
headwind from disposable respirators tracking to the high end of our anticipated range or down approximately $550 million along with continued macro and end-market uncertainty.
respirators headwind to high ~(low) end of range
Transcript
2023 Q2
28 Jul 23
We continue to closely monitor end-market trends across all our businesses, particularly in electronics, consumer retail, industrial and China and have yet to see signs of improvement in trends. Therefore, we currently see organic growth tracking to the lower end of our range of flat to minus 3%
rev tracking to low end of guidance
Transcript
2023 Q2
28 Jul 23
While end markets continue to play out as expected, Q1 and Q2 revenue was slightly above our expectations.
rev \bove expectations -- but only becayse of fx?
Transcript
2023 Q2
28 Jul 23
Consumer
consumer
Transcript
2023 Q2
28 Jul 23
Separation and purification and Health Information Systems declined mid-single digits and low single digits, respectively. These businesses continue to be impacted by lower post-COVID-related biopharma demand and ongoing stress on hospital budgets.
As procedure volumes continue to improve, hospital budgets stabilize and we work through post-COVID-related impacts, we are confident in the long-term outlook of this business.
still covid impacted
Transcript
2023 Q2
28 Jul 23
Health Care
health care
Transcript
2023 Q2
28 Jul 23
largely due to the continued decline in demand for electronics.
Our auto OEM business increased approximately 21% year-on-year, approximately 600 basis points higher than global car and light truck builds.
Our electronics business continues to be impacted by soft end-market demand for electronics.
weak electronics, good auto
Transcript
2023 Q2
28 Jul 23
Transportation and Electronic
t & e
Transcript
2023 Q2
28 Jul 23
Safety and Industrial business
s & i
Transcript
2023 Q2
28 Jul 23
Second quarter total adjusted sales were $8 billion or down 4.7% year-on-year. This result was a little better than forecasted as we experienced a smaller-than-anticipated headwind from foreign currency translation of minus 0.9% versus a forecast of minus 2%. On an adjusted basis, organic sales declined 2.5% versus last year
sales top end of guidance but only due to fx better than expected
Transcript
2023 Q2
28 Jul 23
We are taking a proactive approach to managing PFAS by establishing a more certain path forward for public water systems, communities and 3M.
Subject to court approval, 3M has agreed to support PFAS remediation for public water systems that detect PFAS at any level and our agreement addresses all PFAS, not just those compounds that have been the primary focus of litigation to date.
Our agreement also provides funding for eligible public water systems that may detect PFAS into the future and we have agreed to fund additional testing by public water systems as well.
As Mike shared, the agreement terms entail a present value commitment of $10.3 billion paid over 13 years.
pfas colour
Transcript
2023 Q2
28 Jul 23
We've also made progress in advancing our go-to-market models to bring our innovation closer to customers. In support of these changes, to date, we have initiated the transition to a new export model in 24 countries. I am pleased with how these changes are helping drive performance.
progress in restructuring changes
Transcript
2023 Q2
28 Jul 23
Looking at our markets, trends played out as expected. We saw strength in automotive, both OEM and aftermarket, as well as highway infrastructure and personal safety, excluding disposable respirators. Health Care which was up slightly, continues to be impacted by lower post-COVID-related demand, notably in our Biopharma, Health Information and Medical Solutions businesses.
We also saw continued weakness in electronics, consumer retail and China.
market trends -- auto good but easy compare, healthcare weak, chins weak, as is cE
Transcript
2023 Q2
28 Jul 23
Excluding these charges, we increased operating margin year-over-year. We delivered adjusted earnings per share of $2.17 and adjusted free cash flow of $1.5 billion driven by continued improvements in inventory management.
Today, we are updating our full year earnings per share guidance to $8.60 to $9.10, up from a previous range of $8.50 to $9.
earnings guidance hike , rev unchsnged
Transcript
2023 Q2
28 Jul 23
Also, during the quarter, we initiated a large part of our restructuring program to simplify and streamline the organization.
We are aggressively reducing management layers and rooftops while also streamlining our go-to-market models and supply chain, bringing us closer to our customers.
restructuring actioins
Transcript
2023 Q2
28 Jul 23
our full year guidance, as I have talked about, assumes overall recovery in all economies in the second half, including China.
china built into guidance
Transcript
2023 Q1
5 Jun 23
Effectively immediately, Mike Vale is appointed Group President and Chief Business and Country Officer, a new role on the company’s corporate operations committee reporting to me. In this new role, he will have responsibility for three of the company’s four business groups: Safety and Industrial; Transportation and Electronics and Consumer; and also Country Governance. Jeff Lavers, who is leading our Consumer and Healthcare business, will now lead our healthcare business and support the company’s progress towards a spin-off and the transition to a new CEO and management team. Jeff continues to report to me. Karina Chavez will become Group President, Consumer. Chris Goralski will become Group President, Safety and Industrial.
Ashish Khandpur will continue as Group President, Transportation and Electronics. All three are experienced leaders at 3M and well-positioned to help drive the actions we announced today to improve our performance. Karina, Chris and Ashish will report to Mike Vale. In total, today’s actions will make 3M more streamlined and competitive.
management changes including Vale
Transcript
2023 Q1
18 May 23