3M has released its financial results for the third quarter of 2022. The company reported sales of $8.6 billion, down 4% year-on-year, which included impacts of -1% from divestitures and -5% from foreign currency translation due to strength of U.S. dollar. 3M saw organic sales growth of 2% year-on-year, which included a 1.4 percentage-point headwind from the decline in disposable respirator demand.
3M updated its full-year sales and earnings expectations to reflect the continued strengthening of the U.S. dollar and the uncertain macroeconomic environment. It now predicts total sales growth of -3.5% to -3.0% versus its previous prediction of -2.5% to -0.5%. The company now expects organic sales growth of 1.5% to 2.0% compared to its previous estimate of 1.5% to 3.5%. Acquisition and divestiture sales growth is expected to be -0.5% versus a prior estimate of 0%. The company expects the impact of foreign currency translation on sales to be -4.5% compared to a previous estimate of -4.0%. Adjusted earnings per share is now anticipated to be $10.10 to $10.35.
"We continue to execute our strategies and deliver for our customers in a highly uncertain environment," said 3M chairman and CEO Mike Roman. "Excluding the impact of the decline in disposable respirator sales, our team posted over 3% organic growth. We delivered sequential and year-over-year margin expansion, amidst macroeconomic challenges and the strengthening U.S. dollar."
"We continue to position 3M for the future through investments for growth, productivity and sustainability, along with active portfolio management," Roman continued. "This quarter we divested our food safety business, and began executing the work-streams to successfully spin our health care business, resulting in two world-class, public companies."
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