3M released its second-quarter 2022 financial results, reporting sales of $8.7 billion, down 3% year-on-year. The second-quarter sales numbers included a negative 4 percentage point impact from foreign currency translation due to the strength of U.S. dollar. The company reported organic sales growth of 1% year-on-year, which included a 4 percentage point headwind from the combined impact of China COVID-related lockdowns and decline in disposable respirator demand.
With the release of the second-quarter results, 3M updated its full-year sales and earnings expectations to reflect the impact of the strong U.S. dollar along with the current uncertain macroeconomic environment. The company now expects total sales growth of between -2.5% and -0.5% and organic sales growth of between 1.5% and 3.5%.
“In a challenging macroeconomic environment, 3M executed well and delivered solid earnings, while continuing to drive growth through investments in large, fast-growing areas," said 3M chairman and CEO Mike Roman. "Looking ahead, we updated our adjusted full-year expectations largely due to the strength of the U.S. dollar and uncertain macroeconomic environment. We remain focused on innovating for customers, driving operational improvements and advancing our environmental stewardship – while positioning 3M for the future through our plan to spin off our Health Care business and resolve Combat Arms litigation in a manner that is efficient and equitable."
In a separate press release, 3M announced it is taking steps to resolve litigation related to Combat Arms Earplugs Version 2. Aearo Technologies and related entities, all of which are wholly-owned 3M subsidiaries, have voluntarily initiated chapter 11 proceedings. 3M and all other associated businesses have not filed for chapter 11 and will continue to operate as usual. Aearo Technologies will also continue to operate in the ordinary course.
3M also announced this week that the company intends to spin off its Health Care business, resulting in two public companies that will be positioned to pursue their respective growth plans.
Learn more about 3M at www.3m.com.