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And specifically, you guys no longer disclose pricing, but just trying to understand how are you thinking about the pricing mechanism at 3M? And how are you adapting to what’s happening and do you think we are going to get into a less inflationary environment or from what you are seeing inflation is pretty sticky into next year?
pricing/ ost inflation?
Transcript
2022 Q3
27 Oct 22
First, from an end market perspective, GDP and IPI continue to moderate with current Q4 estimates of 1.4% and 2.2%, respectively
gdp/ipi estimates -- similar to mmm org growtg rate !
Transcript
2022 Q3
27 Oct 22
Auto build rates are currently estimated to be up 2% year-on-year, while consumer electronics demand is expected to remain soft. Healthcare elective procedure and oral care volumes are expected to be in the range of 90% to 95% of pre-COVID levels. And lastly, we anticipate continued inflationary impacts on consumer spending, along with the inventory reduction actions at retailers. Therefore, looking at the fourth quarter, we expect total sales to be in the range of $7.9 billion to $8.2 billion. This includes organic growth in the range of 1% to 3%, which includes a 2% headwind or $150 million to $200 million from the continued decline in disposable respirator demand, and the exit of Russia, which will create a year-on-year headwind of approximately 80 basis points or approximately $70 million.
guidance factor details, auto/cons soft
Transcript
2022 Q3
27 Oct 22
Consumer
consumer
Transcript
2022 Q3
27 Oct 22
Third quarter elective medical procedure volumes were approximately 90% of pre-COVID levels as we saw activity dip in July and ramp back up as we went through the quarter. Fourth quarter procedure volumes are currently projected to be 90% to 95% of pre-COVID levels as labor shortages continue to impact the pace of recovery. Oral care was down mid-single digits against low double-digit growth from a year ago.
We are also seeing softening due to the ongoing inflationary pressures impacting consumer spending on discretionary oral care and orthodontic procedures. Healthcare’s third quarter operating income was $452 million, down 11% year-on-yea
oralcare weakness, ekective medicsal prodceduresw still only at 90%
Transcript
2022 Q3
27 Oct 22
Healthcare business,
heakthcare
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2022 Q3
27 Oct 22
Overall growth was benefited by COVID-related backlog recovery in the Greater China region, which was partially offset by increased weakness in consumer electronics demand, along with the continued constraints in the semiconductor supply chain.
semiC colour
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2022 Q3
27 Oct 22
ransportation and Electronic
t & e
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2022 Q3
27 Oct 22
Safety and Industrial business,
s & I
Transcript
2022 Q3
27 Oct 22
Our full year raw materials and logistics inflation estimate of $750 million to $850 million remains unchanged. And as we have said before, we continue to expect to offset this through pricing actions.
raw materials and logistics costs
Transcript
2022 Q3
27 Oct 22
hese actions helped to more than offset a number of headwinds in the quarter, including the decline in disposable respirator sales, which negatively impacted Q3 operating margins by 30 basis points and earnings by $0.07 a share; incremental end market softness particularly in consumer electronics, along with oral care and consumer retail in the U.S. as persistent inflationary pressures are slowing consumer spending; ongoing global supply chain challenges and raw material constraints; and finally, geopolitical impacts, particularly Russia, which was a year-on-year headwind of $50 million to revenue and $0.03 to earnings per share.
headwinds
Transcript
2022 Q3
27 Oct 22
With some puts and takes, as consumer and consumer electronics demand declined as the quarter progressed, while industrial end markets demand remained steady.
consumer weakened, industrial steady
Transcript
2022 Q3
27 Oct 22
For organic growth, we are lowering the high end of our range to 1.5% to 2%, against the prior range of 1.5% to 3.5%. We anticipate adjusted EPS of $10.10 to $10.35, against the previous expectation of $10.30 to $10.80.
We are also updating our range for adjusted free cash flow conversion to 85% to 95% from 90% to 100% previously.
updared guidance
Transcript
2022 Q3
27 Oct 22
Transportation and Electronics posted 3% organic growth, with Safety and Industrial, Consumer and Healthcare, each growing 2%. All business groups delivered margins above 21%, with notable margin expansion in Safety and Industrial, and Transportation and Electronics.
segment groewth details
Transcript
2022 Q3
27 Oct 22