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how much pricing came through this quarter?
(No comment added)
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2023 Q1
13 May 23
The guide for the year is low-single digits.
(No comment added)
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2023 Q1
13 May 23
The average is low-single digits.
(No comment added)
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2023 Q1
13 May 23
we had anywhere between low to mid-single digits
(No comment added)
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2023 Q1
13 May 23
And I just wanted to focus on the healthcare business as that’s meant to spin out in a matter of months. The margin is down pretty heavily year-on-year again, down sequentially as well and not a lot of organic growth.
So, just trying to sort of understand how comfortable do you feel with that healthcare business kind of ahead of the spin?
healthcare weak why?
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2023 Q1
29 Apr 23
So, Joe, the $700 million to $900 million, if we just break it down to broad buckets, 40% of it is around the supply chain simplification that Mike talked about. The remaining 60%, you can split between costs at the center of the company and costs at the BGs. From a P&L perspective, a couple of items that Mike talked about, again, on the go-to-market. There will be a couple of divisions in TEBG that will be combined. And then from a consumer perspective, we will serve our customers more from an area perspective and then realign them around portfolios. And the other piece on a go-to-market cost saving is, as we look at some of the countries, the way we serve using our digital capabilities, we will look at using our partnerships that we have with our third-party distributors in those countries and use a digital/export model to serve those customers in those countries, which will also allow us to take out rooftops and fully loaded P&Ls in those countries that will also allow us to save cost.
restructiring -- 40% supplu chaij simplification, 60% costs ayt center of the company
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2023 Q1
29 Apr 23
But if you just use 2023 as a guide, as a basis, the margin expansion, excluding these charges are when these charges are done, is a 200 basis points to 300 basis points of margin expansion that you should see on an annualized steady-state basis. What I would tell you is that allows us to definitely get the better leverage that we have all been talking about.
margin expansion to come
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2023 Q1
29 Apr 23
Mike, Monish, I think you guys have had a few programs now over the last several years. And I know that they are approaching different aspects of the cost elements and different regions, etcetera. But trying to roll up to where do you see the margin entitlement for the business as we get through these programs over the next several years. Is there anything that you sort of have pencil out there that we should keep in mind, especially with a few of these programs overlapping and different mix changes, etcetera, going on within the business?
restructuring program?
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2023 Q1
29 Apr 23
r so from me is that we are prioritizing more and more where we focus that R&D investment. It’s still the first priority in our capital allocation, invest in R&D, invest in CapEx to drive that growth. We see the opportunities in those high-growth market spaces.
r & d priority
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2023 Q1
29 Apr 23
nd then there is been, perhaps the last decade, where I’d characterize growth is pretty minimal and maybe not as much support in the margin structure as you had in the past. But is part of the restructuring and the changes you are making to help drive more accountability and productivity in R&D? Is it – is there a – I mean I guess, a more polite way to ask the question is, is there any cultural or structural problems in R&D that you can address and perhaps improve that productivity going forward?
cultursal problems in r & d?
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2023 Q1
29 Apr 23
For example, Mike mentioned one of the areas where we are relooking at how we go to market in certain countries where in the past, we have had a full roof stop and a full cost structure, and now we’re going to work through our partnerships of third-party distributors, leverage our digital capabilities, leverage our export capabilities. And that also allows us to reduce cost while making sure we still continue to take care of customers in those countries.
reducing cost
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2023 Q1
29 Apr 23
s far as like the go-to-markets are concerned and how you’re changing things, what was the catalyst for this? What did you see in the business that you thought you needed to improve on from a go-to-market perspective with all these changes that you were talking about? It seems like some pretty significant initiatives from that perspective and a change in the way you guys have done business historically. What was the catalyst for that?
why the restructuring?
Transcript
2023 Q1
29 Apr 23
Including these factors, our expectations for Q2 are for total adjusted sales to be in the range of $7.7 billion to $7.9 billion versus $8.4 billion last year or down 6% to 8% year-on-year. Organic sales is expected to be down low to mid-single digits, which includes the forecasted year-on-year headwind of approximately 1.5% from disposable respirators. And finally, foreign currency translation is expected to be approximately a minus 2% headwind to sales versus last year’s Q2 and divestitures a year-on-year headwind of minus 1%.
From an EPS perspective, we estimate that second quarter adjusted earnings per share will be in the range of $1.50 to $1.75, including a pretax restructuring charge of $175 million to $250 million or $0.25 to $0.35 per share. This range also incorporates the continued softness in organic sales and expected increase in investments, higher non-op interest costs and an adjusted tax rate of 18.5% to 19.5%.
To wrap up, 2023 is a pivotal year for 3M from an execution perspective.
q2 guidance
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2023 Q1
29 Apr 23
Stationery and office grew low single digits organically year-on-year, while the home improvement, home health and auto care business declined organically. Relative to first quarter last year, consumers have shifted their spending patterns to more non-discretionary items and retailers have aggressively reduced their inventory levels.
We expect consumers to remain cautious with their discretionary spending as we move forward through the year.
weak cons discretionary
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2023 Q1
29 Apr 23
consumer business
consumer business
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2023 Q1
29 Apr 23
Healthcare
healtcare
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2023 Q1
29 Apr 23
Our electronics business saw adjusted organic sales declines in the mid-30% range. This business continues to be impacted by significant end-market weakness along with tiers and OEMs aggressively reducing inventories, particularly for smartphones, tablets and TVs.
v weak cons electronics
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2023 Q1
29 Apr 23
Our auto OEM business increased approximately 6% year-on-year, in line with global car and light truck builds.
We continue to gain penetration on new automotive platforms and expect to outperform build rates over the long run.
auto oem growth
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2023 Q1
29 Apr 23
organic growth declined high single-digits in industrial adhesives and tapes due to consumer electronic softness. And closure and masking systems was down low single digits as consumers pull back on discretionary spending, impacting e-commerce shipments. Roofing granules were down low single digits.
cons elect/ind adhesives weak --
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2023 Q1
29 Apr 23
Transportation and Electronics
transportation and electronics
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2023 Q1
29 Apr 23