3M’s first-quarter 2024 results are reported inclusive of the Health Care business segment, on the same basis on which 3M provided its first-quarter guidance. GAAP earnings per share were $1.67, down from $1.76 year-on-year. The GAAP operating income margin increased to 18.8%, from 15.4% Q1 2023. The adjusted operating income margin increased to 21.9% from 17.9% year-on-year. Adjusted EPS increased 21% to $2.39.

Reported sales were $8.0 billion, down 0.3% percent year-on-year, with organic sales flat. Reported adjusted sales of $7.7 billion, up 0.5% with adjusted organic sales increase of 0.8% year-on-year. 3M returned $835 million to shareholders via dividends.

On April 1, 2024, 3M completed the planned spin-off of its health care business, which formally launched Solventum Corporation as an independent corporation. 3M retained 19.9% of the outstanding shares of Solventum common stock, which will be monetized within five years following the spin-off.

"We delivered results that were better than our expectations as we returned to organic growth and achieved double digit adjusted earnings growth. We improved performance in our businesses through strong operational execution, completed the spin-off of Solventum, and finalized two major legal settlements," said 3M Chairman and CEO Mike Roman. "The progress we have made in executing our strategic priorities, positions the company for long-term shareholder value creation as Bill Brown assumes the role of 3M CEO."

On March 29, 2024, the company's previously announced settlement agreement with U.S. public water suppliers received final approval from the U.S. District Court in Charleston, South Carolina. The agreement includes a pre-tax present value commitment of up to $10.3 billion payable over thirteen years, for which the company has previously recorded reserves.

On March 26, 2024, 3M announced that, as of the final registration date for the Combat Arms Earplug settlement agreement, more than 99% of claimants are participating in the settlement. Under the terms of the agreement, 3M will pay a total amount of up to $6.0 billion, between 2023 and 2029, to resolve the litigation, provided all participation thresholds are met. This represents a total pre-tax present value of $5.3 billion, for which the company has previously recorded reserves.

In addition, following the spin of Solventum, 3M's dividend payout ratio is expected to be approximately 40% of adjusted free cash flow. The second-quarter dividend is expected to be declared in May 2024, and is subject to board approval.

To learn more, visit www.3m.com.