ST. PAUL, Minn., Jan. 24, 2023 /PRNewswire/ — 3M (NYSE: MMM) today reported fourth-quarter and full-year 2022 results and provided its 2023 financial outlook.
“3M continues to focus on delivering for customers and shareholders in a challenging economic environment,” said 3M chairman and CEO Mike Roman. “We posted organic growth of 0.4 percent — versus our expectation of 1 to 3 percent — adjusted margins of 19.1 percent, and adjusted earnings of $2.28 per share. The slower-than-expected growth was due to rapid declines in consumer-facing markets – a dynamic that accelerated in December – along with significant slowing in China due to COVID-related disruptions. As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels.
“In a year impacted by inflation, global conflicts, and economic softening, our team took actions to position 3M for future success,” said Roman. “We managed our portfolio – including the divestiture of our Food Safety business, planned spin-off of our Health Care business, and commitment to exit PFAS manufacturing by the end of 2025 – while continuing to work towards a mediated resolution for Combat Arms litigation. We invested in growth and productivity, while following through on sustainability commitments.
“We expect macroeconomic challenges to persist in 2023,” Roman continued. “Our focus is executing the actions we initiated in 2022 and delivering the best performance for customers and shareholders. Based on what we see in our end markets, we will reduce approximately 2,500 global manufacturing roles – a necessary decision to align with adjusted production volumes.”