Q4 2024 3M Co Earnings Call Transcript
Key Points
- 3M Co (MMM) achieved a strong finish to 2024 with adjusted earnings per share of $7.30, at the high end of their guidance and up 21% year over year.
- The company generated $4.9 billion in free cash flow with a conversion rate of 111%, demonstrating strong cash flow management.
- All business groups reported positive adjusted organic growth in Q4, marking the first time in nine quarters that all groups grew together.
- 3M Co (MMM) launched 169 new products in 2024, a 32% increase over the previous year, indicating a reinvigoration of their innovation engine.
- The company returned $3.8 billion to shareholders in 2024 through dividends and share repurchases, reflecting a strong commitment to shareholder returns.
- Safety & Industrial's on-time-in-full (OTIF) performance remains below expectations in the low 80s, indicating service level challenges.
- Adjusted operating margins in Q4 were 19.7%, down 20 basis points year over year, reflecting some margin pressure.
- The Transportation & Electronics business faced a mid-single-digit decline in the auto OEM segment, highlighting ongoing challenges in the automotive sector.
- 3M Co (MMM) anticipates a slowdown in growth in China for 2025, with expectations of low single-digit revenue growth.
- The company faces non-operational headwinds of approximately $0.40 per share in 2025, partly due to FX impacts and pension expenses.
Ladies and gentlemen, thank you for standing by. Welcome to the 3M fourth-quarter earnings conference call. (Operator Instructions) As a reminder, this call is being recorded, Tuesday, January 21, 2025.
I would now like to turn the call over to Chinmay Trivedi, Senior Vice President of Investor Relations and Financial Planning and Analysis at 3M.
Thank you. Good morning, everyone, and welcome to the fourth-quarter earnings conference call. With me today are Bill Brown, 3M's Chief Executive Officer; and Anurag Maheshwari, our Chief Financial Officer. Bill and Anurag will make some formal comments, then we will take your questions.
Please note that today's earnings release and slide presentation accompanying this call are posted on the homepage of our Investor Relations website at 3m.com. Please turn to slide 2 and take a moment to read the forward-looking statements.
During today's conference call, we'll be making certain
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