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One is continued execution in the supply chain with some of the restructuring that we have made, and the supply chain is definitely more agile.
We are also using a lot of data and data analytics.
We have also learned through the pandemic on how to continue to operate our supply chain.
So number one, you're starting to see the benefit of the improved yield and efficiency.
You're able to take longer runs, too, as material gets better.
Secondly, the team has been very thoughtful in proactive cost management. To the extent where they saw there were places they could invest, they have. To the extent where we had lower volumes, we have managed to control cost.
Third is we have had a relentless focus on working capital with inventory. And you're seeing that from a cash conversion basis.
So I would just say it's continued, good, strong operating performance that you're starting to see.
And then as you add on the benefits that you get from the restructuring and once the cost goes away, which we have said this program will take approximately 2 years to complete out, you can see the overall, long-term benefits from the margin rate that you're going to get from better operating performance as well as better restructuring benefit
underlying margin expansion
Transcript
2023 Q3
24 Oct 23
And then when it comes to price, I would tell you, we came into the quarter -- into the year, we said low single digits price increase. That's what we are -- as of right now, we are on track with pretty much the same range. And Joe, as you know, you've followed 3M longer than I have, this is not a formula-based pricing.
We are very thoughtful about it. We look at it market-by-market, product-by-product, and we make sure that the price that we are charging our customers is a representation of the value that we -- that our customers get.
pricing colour
Transcript
2023 Q3
24 Oct 23
And so I think part of the answer to your question is we took those decisions to lean out the center of the company, simplify our supply chain, streamline our go-to-market models.
productivoty actions
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2023 Q3
24 Oct 23
Consumer business
consumer v bad and mgn not good too
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2023 Q3
24 Oct 23
Health Care
health care, oral care and med solutions
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2023 Q3
24 Oct 23
Adjusted operating margins were 26.3%, up 460 basis points year-on-year and up 650 basis points sequentially. T
t & e op mgn v up 460bp
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2023 Q3
24 Oct 23
We are starting to see signs of stabilization in consumer electronics end market
signs stabiizarion in cons electronics
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2023 Q3
24 Oct 23
Transportation and Electronics
t and e
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2023 Q3
24 Oct 23
Adjusted operating income was $708 million or up 5% versus last year. Adjusted operating margins were 25.7%, up 250 basis points year-on-year and up 350 basis points sequentially. The year-on-year improvement in margins was mainly driven by ongoing productivity actions, restructuring benefits, strong spending discipline and price. Partially offsetting these benefits were headwinds from lower sales volume and restructuring costs.
s ad i -- ;lower volume , but good procing and productivity
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2023 Q3
24 Oct 23
Safety and Industrial
saftery amd industrial
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2023 Q3
24 Oct 23
This year-on-year improvement was driven by our ongoing focus on working capital management, especially inventory. Inventory was down over $200 million sequentially and $550 million year-on-year as we benefit from the power of daily management and data and data analytics to speed up inventory ter
wc improvement notanly cash flow
Transcript
2023 Q3
24 Oct 23
Pretax restructuring and related charges in the quarter were $68 million or a negative impact to margins of 80 basis points and $0.10 to earnings. This charge was lower than our anticipated range of $125 million to $175 million in Q3 due to factors that impacted the timing of actions that are being pushed into Q4.
chareges lower than expected
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2023 Q3
24 Oct 23
This softness was partially offset by strength in our automotive OEM business.
auto oem stromg
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2023 Q3
24 Oct 23
Consumer and electronics end markets continue to be soft.
consumer and electrooinics soft
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2023 Q3
24 Oct 23
As we make progress and deliver improved financial results, we are increasing our full year adjusted earnings per share guidance to $8.95 to $9.15, up from a previous range of $8.60 to $9.10, and our adjusted free cash flow conversion range to 100% to 110%, up from 90% to 100% previously.
increasing guidance
Transcript
2023 Q3
24 Oct 23
Yes. Okay. And can you just give us an idea of the range of the absolute margin? I mean we could probably do a lot of backing into it but what you now expect for the year from just a range on an absolute margin basis?
Monish Patolawala
Between 19.5% to 20%, Steve, versus the 19% that we had told you coming into the year.
mgn guidance
Transcript
2023 Q2
28 Jul 23
And then specifically, I know that Apple is considering rolling out like an all-OLED iPad next year. And I know when we went through that transition a few years ago on smartphones. That was a hot topic for your company. Any thoughts just around that specifically and how that impacts your business?
Mike Roman
Yes, Joe, I'll go back to my earlier comments. The decline that we've seen in the first half has really been driven by reduced demand in smartphones, tablets, TVs, those different categories. There is an ongoing shift in the display technology from LCD to OLED. And that's something we had talked about.
As you noted, we talked about it a number of years ago, anticipating it.
We continue to innovate on the OLED platforms but we do see some impact from that shift as we see the continued movement away from LCD to OLED in a few of those categories.
So there's some impact from that. The bigger impact, again, is the demand in the end markets, smartphones, TVs, tablets and laptops, a few -- those categories.
apple oled ?
Transcript
2023 Q2
28 Jul 23
So it's a mix. And the impact from China is part of that as well. We're seeing the slowdown in the markets there or the slow first half and not yet seeing an upturn in that and looking for that as we go into the second half
china weak
Transcript
2023 Q2
28 Jul 23
What we are watching also is, to answer some other of your points, raw material and energy cost inflation coming into the year was $150 million to $250 million.
We have now changed that to $150 million to $200 million.
raw material and energy betteer rthan expected
Transcript
2023 Q2
28 Jul 23
Secondly, when we came into the year, we had said OI or operating margin will be somewhere in that 18.5% to 19% range. Sitting right now with a lower revenue number with a higher EPS number, we believe that we'll be somewhere in that 19.5% to 20% range which includes all the charges and all the benefits
margin better than expected iitiallty for thr year
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2023 Q2
28 Jul 23