3M Company (MMM)

[Futurecash]

Best years are over. Next stop $97.

[Fangster]

Been waiting to buy MMM!

[DewDiligence]

Those ugly numbers are largely a result of the earplug litigation. If 3M can get limit the earplug liability, the other problems should take care of themselves in due course.

[bar1080]

3M Q dividends. My worst grower lately by miles

    Date	    Dividend 
 Mar 12, 2023   1.50 Dividend 
 Nov 17, 2022	1.49 Dividend 
 Aug 19, 2022	1.49 Dividend 
 May 19, 2022	1.49 Dividend 
 Feb 17, 2022	1.49 Dividend 
 Nov 18, 2021	1.48 Dividend 
 Aug 20, 2021	1.48 Dividend 
 May 20, 2021	1.48 Dividend 
 Feb 11, 2021	1.48 Dividend 
 Nov 19, 2020	1.47 Dividend 
 Aug 21, 2020	1.47 Dividend 
 May 21, 2020	1.47 Dividend 
 Feb 13, 2020	1.47 Dividend 
 Nov 21, 2019	1.44 Dividend 
 Aug 15, 2019	1.44 Dividend 
 May 23, 2019	1.44 Dividend 
 Feb 14, 2019	1.44 Dividend 
 Nov 21, 2018	1.36 Dividend 
 Aug 23, 2018	1.36 Dividend 
 May 17, 2018	1.36 Dividend 
 Feb 15, 2018	1.36 Dividend

[bar1080]

3M YTD -2.52%; Perf for 12 months -27.2%, my worst performer YTD and probably the last several years.

[DewDiligence]

3M increases dividend for 65th consecutive year:

https://finance.yahoo.com/news/3m-board-declares-quarterly-dividend-215700658.html

The quarterly increase was only a penny—from $1.49 to $1.50—so it’s pretty clear that the raise is mainly to keep the streak alive.

At the current share price ($116.90), the new annualized payout of $6.00 is a yield of 5.1%.

[DewDiligence]

3M 4Q22 CC transcript:

https://finance.yahoo.com/news/3m-company-nyse-mmm-q4-174248477.html

[DewDiligence]

3M 4Q22 CC slides:

https://s24.q4cdn.com/834031268/files/doc_financials/2022/q4/4Q-2022-Earnings-Presentation-vFINAL.pdf

[DewDiligence]

3M reports 4Q22 results—issues 2023 guidance:

https://s24.q4cdn.com/834031268/files/doc_financials/2022/q4/2022-Q4-Earnings-Release-vFinal.pdf

3M's full-year expectations for 2023 include the following:

• -6 to -2 percent adjusted total sales growth, reflecting the following:
o -3 percent to flat adjusted organic sales growth, includes -2 percentage point impact from disposable respirator decline and exit of Russia;
o -2 to -1 percent adjusted foreign currency translation impact;
o -1 percent adjusted divestiture impact.

• Adjusted earnings per share of $8.50 to $9.00, versus 2022 of $9.88 on a comparable basis. 2023 adjusted earnings per share include -$0.55 to -$0.80 of combined year-on-year headwinds from the decline in disposable respirator demand, exit of Russia, foreign currency translation, and divestitures

• Adjusted operating cash flow of $5.8 to $6.3 billion contributing to 90% to 100% adjusted free cash flow conversion

These expectations reflect changes in certain of 3M’s non-GAAP measures beginning in 2023 as discussed in the preceding section [see my comments below]. 3M expects to record a pre-tax restructuring charge of $75 to $100 million in the first quarter of 2023. This pre-tax charge and associated savings is included in the company’s full-year 2023 outlook.

The change in the way 3M calculates non-GAAP EPS is that PFAS manufacturing is now treated as a discontinued business (#msg-170742171) and is therefore excluded. (3M was already excluding earplug- and PFAS-related legal expenses from the non-GAAP EPS calculation.)

[DewDiligence]

3M’s lineup at CES:

https://finance.yahoo.com/news/3m-innovation-full-display-ces-141500180.html

[DewDiligence]

3M is appealing this matter to the 7th US Circuit Court (#msg-170191027), so Judge Rodgers’ statement today has no practical consequence, as far as I can tell.

[bar1080]

"Judge penalizes 3M, bars it from shifting liability in earplug litigation"

"(Reuters) - A U.S. judge on Thursday barred 3M Co from trying to avoid liability for injuries current and former U.S. military members sustained from its allegedly defective earplugs by shifting blame to a subsidiary.

U.S. District Judge M. Casey Rodgers, the Pensacola, Florida-based judge tasked with overseeing nearly 250,000 cases over the combat earplugs, said 3M deserved the "harshest penalty" for its "bad faith" attempts to transfer the liability to a bankrupt unit."

https://finance.yahoo.com/news/u-judge-penalizes-3m-bars-233244902.html

[DewDiligence]

3M—US Chamber of Commerce files amicus brief in support of 3M’s petition before the 7th US Circuit Court with respect to earplug litigation:

https://finance.yahoo.com/news/surprise-u-chamber-backs-3m-003147746.html

[DewDiligence]

3M will_cease_making PFAS products_by_end_of 2025:

https://finance.yahoo.com/news/3m-exit-pfas-manufacturing-end-113000562.html

3M’s current annual PFAS sales are $1.3B, about 4% of total corporate sales.

[DewDiligence]

When a company slashes guidance (again) and the stock is flattish (as it is this morning), it may be a hint that the share price is close to a bottom.

[DewDiligence]

3M is seeing some moderation of price inflation in the logistics area.

[DewDiligence]

3M reports 3Q22 results—lowers 2022 EPS guidance_again…

PR:
https://investors.3m.com/news/news-details/2022/3M-Reports-Third-Quarter-2022-Results/default.aspx

CC slides:
https://s24.q4cdn.com/834031268/files/doc_financials/2022/q3/3Q-2022-Earnings-Slides.pdf


2022 non-GAAP* EPS guidance has been lowered to $10.10-10.35 (vs $10.30-10.80 three months ago and $10.75-11.25 six months ago). The biggest components of the lowered guidance vs three months ago are FX and supply-chain bottlenecks.

*Excludes legal expenses for earplug and PFAS cases. The next trial in the earplug MDL will be in Feb 2023. The next trial in the PFAS MDL will be in Jun 2023.

[DewDiligence]

3M—Federal Appellate Court agrees to hear Aearo-bankruptcy case:

https://www.wsj.com/articles/3m-earns-appellate-review-of-earplug-units-bankruptcy-shield-11665682266

The Seventh U.S. Circuit Court of Appeals in Chicago on Wednesday granted Aearo’s petition requesting a direct review of the bankruptcy-court ruling, bypassing a federal-district court and putting the appeal on a faster track to resolution.

Aearo is the 3M wholly-owned subsidiary that made the earplugs in question and that recently filed for bankruptcy protection.

Please see #msg-169803125 for related info. The 30-40% probability I gave in that post (from 8/26/22) that 3M will ultimately prevail on this matter may be a little too low insofar as the Appellate Court’s willingness to allow 3M to bypass the Federal District Court is an encouraging sign.

3M is +5% as I’m typing.

[Futurecash]

Employees paying for mismanagement. 3M cuts jobs.

[Banjo50]

Maybe they have the ability to look into the future.

[procqw2]

Google had a funny glitch this morning:

[Enterprising Investor]

I tend to look at investments differently sometimes.

In this case, I was buying NEOG at a discount.

Although imperfect not knowing the final ratio, an odd-lot investor could have shorted six shares of NEOG.

I know someone who bought 99 shares of MMM on Monday for $126.25 and shorted 670 NEOG locking in $1,500 of profit.

Normally, I would have done “long, short and wait.” It’s what I should have done.

[DewDiligence]

If my arithmetic is correct, you expect to make about $900 on this arbitrage play—assuming that you are able to sell the NEOG shares right away.

Do you have an opinion on #msg-169803130 (bottom)? TIA

[Enterprising Investor]

Holders of 99 shares or less will not be subject to proration.

Please see my post from 8/05/22.

I purchased 99 shares.

It pays to seek out the fine print. Most tender/exchange offers have such a clause. It’s a great way to make a little “beer money”.

Normally, I would have shorted the other company. In this case, I was simply trying to buy SpinCo at a 7 percent discount.

[DewDiligence]

In other words, the exchange offer is very likely oversubscribed and hence shares tendered will likely be filled on a low pro rata basis.

The adverse bankruptcy ruling last week makes the above even more likely.

[DewDiligence]

The exchange offer includes only 2.8% of 3M's shares outstanding.+

[Enterprising Investor]

3M Sets Final Exchange Ratio in Split-Off Exchange Offer in Connection with Neogen Transaction (8/29/22)

ST. PAUL, Minn., Aug. 29, 2022 /PRNewswire/ -- 3M (NYSE: MMM) announced today the final exchange ratio of 6.7713 for its split-off exchange offer to 3M stockholders to exchange their shares of 3M common stock for shares of common stock of Garden SpinCo Corporation ("SpinCo"). The exchange offer is being conducted in connection with the previously announced pending separation of 3M's food safety business and the subsequent merger of SpinCo, a subsidiary of 3M formed to hold the food safety business, with a subsidiary of Neogen Corporation ("Neogen").

For each share of 3M common stock that is validly tendered and accepted for exchange, 3M will deliver approximately 6.7713 shares of SpinCo common stock. Upon completion of the merger, each share of SpinCo common stock will be converted into the right to receive one share of Neogen common stock. As a result, 3M stockholders who tender shares of 3M common stock in the exchange offer will receive approximately 6.7713 shares of Neogen common stock (subject to the receipt of cash in lieu of fractional shares) for each share of 3M common stock accepted for exchange. Because the final exchange ratio is less than the upper limit, the upper limit is not in effect.

The exchange offer is scheduled to expire at 11:59 p.m., New York City time, on August 31, 2022, unless terminated or extended, and the closing of the merger is expected to occur promptly following the consummation of the exchange offer. 3M stockholders may tender or withdraw their shares of 3M common stock until the expiration of the exchange offer by following the procedures described in the exchange offer materials. The closing of the exchange offer and the merger remain subject to the satisfaction or waiver of customary closing conditions, as described in the exchange offer materials.

Based on the final exchange ratio, 3M currently expects to accept for exchange approximately 15,989,536 shares of 3M common stock if the exchange offer is fully subscribed. Because the exchange offer will be subject to proration if the exchange offer is oversubscribed, the number of shares of 3M common stock that 3M accepts in the exchange offer may be less than the number of shares validly tendered by 3M stockholders. If the exchange offer is consummated but not fully subscribed, 3M will distribute the remaining shares of SpinCo common stock on a pro rata basis to 3M stockholders as of 5:00 p.m. Eastern time on August 31, 2022 whose shares of 3M common stock remain outstanding after the completion of the exchange offer. Any 3M stockholder who validly tenders their shares and whose shares are accepted in the exchange offer will have waived and forfeited all of their rights to receive any shares of SpinCo common stock in that pro rata distribution.

For more information about the exchange offer, please contact the information agent, Georgeson LLC, at 1290 Avenue of the Americas, 9th Floor, New York, NY 10104 or at the telephone number 888-607-6511 (toll-free in the United States).

About 3M

At 3M, we apply science in collaborative ways to improve lives daily as our employees connect with customers all around the world. Learn more about 3M's creative solutions to the world's problems at www.3M.com or on Twitter @3M or @3MNews.

https://www.prnewswire.com/news-releases/3m-sets-final-exchange-ratio-in-split-off-exchange-offer-in-connection-with-neogen-transaction-301614127.html

[DewDiligence]

I'm a long-retired lawyer and I never understood the theory of 3M's maneuvering against the earplug litigation. That gambit certainly wouldn't have worked years ago.

A similar approach worked for Georgia Pacific, and the “Texas two-step” may end up working for JNJ. 3M would’ve been derelict if it had not tried to fence-ring the earplug liabilities, IMO.

p.s. I, too, lucked out on my Monsanto holding.

[bar1080]

I'm a long-retired lawyer and I never understood the theory of 3M's maneuvering against the earplug litigation. That gambit certainly wouldn't have worked years ago. Recently I dodged a similar situation when my kids' Monsanto holding was barely able to foist its incessant Roundup weed killer litigation onto Bayer of Germany. Thankfully Monsanto Corporation retained considerable value, but the company's brand (and balance sheet) was diminished by years in court. Monsanto, I believe, no long exists anywhere as a product nameplate.

With a market cap of $73 billion, 3M has considerable resources to carry on, but I'm guessing the company is precarious for growth. Several months ago my son asked my opinion of him buying 3M shares and I advised him to never invest based primarily on a showy payout [4.2%]. Since then, MMM is down another 15%, somewhat worse than the broad stock market. I'm holding 3M stock, but not adding

A recent article on 3M problems.
https://seekingalpha.com/article/4537364-3m-company-the-old-adage-of-not-buying-into-lawsuits

[DewDiligence]

3M still_has_some shots-on-goal in_the earplug litigation…

As far as I know, 3M’s next step is to appeal the bankruptcy court’s decision in the Federal Circuit Court, where the case is heard by a 3-judge panel. I.e., 3M needs to convince 2 of the 3 Circuit Court judges to overturn the lower-court ruling.

If 3M fails to obtain a reversal of the lower-court ruling in the Circuit Court hearing, the company will presumably request an en banc rehearing of the case, where all 9 judges from the (regional) Federal Circuit Court hear the case. It takes 4 of the 9 judges to grant the request for an en banc rehearing and 5 of the 9 judges to prevail on the merits and overturn the lower-court ruling.

If 3M is unsuccessful in the Federal Circuit Court, the next step is to appeal to the USSC. At the USSC, it takes 4 of the 9 justices to grant certiorari and 5 of the 9 justices to prevail on the merits.

All told, I think 3M’s chances of overturning the lower-court ruling are 30-40%. The fact that there is a precedent for using the bankruptcy court to do what 3M is trying to do is helpful.

[DewDiligence]

3M—(-9%)—fails to persuade Bankruptcy Court to accept earplug litigation:

https://finance.yahoo.com/news/3m-t-bankruptcy-halt-lawsuits-190012322.html

3M says it will appeal the ruling.

[bar1080]

"3M Unit Defends Request to Shield Parent From Mass Earplug Lawsuits"

"Lawyers representing 3M Co. ’s bankrupt Aearo Technologies LLC subsidiary defended its request to a bankruptcy judge to extend a litigation stay to the parent company to resolve mass earplug lawsuits, saying such a move would be in line with other court rulings.

Aearo Technologies lawyer Chad Husnick on Wednesday said before Judge Jeffrey Graham of the U.S. Bankruptcy Court in Indianapolis that even though 3M itself didn’t file for bankruptcy, it also should be shielded from the 230,000 pending lawsuits that alleged 3M’s military earplugs were defective. Without the protection, Mr. Husnick said, mass lawsuits would continue against 3M in the U.S. District Court in Pensacola, Fla., and would complicate earplug unit Aearo’s restructuring."

https://www.wsj.com/articles/3m-unit-defends-request-to-shield-parent-from-mass-earplug-lawsuits-11660835021?siteid=yhoof2

[DewDiligence]

3M—Federal judge allows transfer of earplug litigation to bankruptcy court:

https://www.wsj.com/articles/judge-knocks-3m-bankruptcy-strategy-for-military-earplug-lawsuits-11660578963

The bankruptcy court itself must still approve the transfer of jurisdiction, but the decision in the link above was a major hurdle that has now been overcome.

p.s. I can read only the first few sentences of the above article b/c it the full article is available only through a WSJ Pro subscription. Still, I can see enough of the article to understand what it all means.

[Enterprising Investor]

Holders of 99 shares or less will not be subject to proration.

Beneficial holders (other than participants in the 3M 401(k) Plans) of less than 100 shares of 3M Common Stock who validly tender all of their shares may elect not to be subject to proration by checking the “Odd Lot” box in the letter of transmittal. If your odd-lot shares are held by a broker for your account, you can contact the broker and request this preferential treatment. All of your odd lot shares will be accepted for exchange without proration if 3M completes the exchange offer.

[DewDiligence]

Website dedicated to 3M-NEOG exchange offer:

https://www.envisionreports.com/3MNEOGENEXCHANGE/2022/3mneogenexchangeaug4/index.html?voting=true

[DewDiligence]

3M commences exchange offer for food-safety/NEOG spinoff:

https://finance.yahoo.com/news/3m-commences-split-off-exchange-164100919.html

3M announced today the commencement of an exchange offer to effect the separation of its food safety business (the "Food Safety Business"), in furtherance of the previously announced Reverse Morris Trust transaction with Neogen Corporation ("Neogen") (NASDAQ: NEOG) through the merger of Garden SpinCo Corporation ("SpinCo"), currently a wholly-owned subsidiary of 3M formed to hold the Food Safety Business, with a subsidiary of Neogen (the "Merger").

Key elements of the exchange offer include:

• 3M stockholders have the option to exchange some, all or none of their shares of 3M common stock for shares of common stock of SpinCo, subject to proration as described below. Shares of SpinCo common stock will convert automatically into the right to receive shares of Neogen common stock at the closing of the Merger, which is expected to occur promptly after completion of the exchange offer.

• Tendering 3M stockholders are expected to receive approximately $107.53 of Neogen common stock for every $100.00 of shares of 3M common stock tendered and accepted in the exchange offer, subject to the upper limit described below.

• 3M will determine the prices at which shares of 3M common stock and shares of SpinCo common stock (and ultimately shares of Neogen common stock) will be exchanged by reference to the simple arithmetic average of the daily volume-weighted average prices of shares of 3M common stock on the New York Stock Exchange and shares of Neogen common stock on the Nasdaq Global Select Market on each of the last three full trading days ending on and including the second full trading day prior to the expiration date of the exchange offer (which are currently expected to be August 25, August 26 and August 29, 2022).

• 3M currently expects that approximately 108.3 million shares of SpinCo common stock will be available in the exchange offer, with the final number dependent on the number of outstanding shares of Neogen common stock outstanding immediately prior to the closing of the Merger. The number of shares of 3M common stock that will be accepted in the exchange offer will depend on the final exchange ratio, the number of shares of SpinCo common stock offered and the number of shares of 3M common stock tendered. Based on recent trading prices of shares of 3M common stock and Neogen common stock, and assuming the issuance of 108.3 million shares of SpinCo common stock, if the exchange offer were fully subscribed, approximately 15.7 million shares of 3M common stock would be accepted for exchange in the exchange offer.

• The exchange offer and withdrawal rights are scheduled to expire at 11:59 p.m., New York City time, on August 31, 2022, unless the exchange offer is extended or terminated.

The 7% discount makes this (tax-free) exchange offer quite attractive. However, I consider 3M undervalued in light of the recent action on the earplug litigation (#msg-169496455), which argues against swapping. I haven’t yet decided whether to tender any, or all, of my 3M shares.

Note: The agreement to merge 3M’s food-safety business with NEOG in a Reverse Morris Trust was announced in Dec 2021 (#msg-167115003); however, the exchange offer described above was first mentioned today.

[DewDiligence]

3M reports 2Q22 results—sharply lowers 2022 guidance:

• Total sales growth: -2.5 to -0.5 percent vs. 1 to 4 percent prior

• Organic sales growth: 1.5 to 3.5 percent vs. 2 to 5 percent prior

• Foreign currency translation: -4 percent vs. -1 percent prior

• GAAP earnings per share: $7.32 to $7.82 vs. $9.89 to 10.39 prior

• Adjusted earnings per share: $10.30 to $10.80 vs. $10.75 to $11.25 prior

• Operating cash flow of $6.6 to $7.2 billion contributing to 90% to 100% adjusted free cash flow conversion

2Q22 PR:
https://investors.3m.com/news/news-details/2022/3M-Reports-Second-Quarter-2022-Results/default.aspx

CC slides:
https://s24.q4cdn.com/834031268/files/doc_financials/2022/q2/2Q-2022-Earnings-Slides.pdf

[DewDiligence]

3M to spin-off healthcare business to 3M shareholders in late 2023:

https://investors.3m.com/news/news-details/2022/3M-Announces-Plans-to-Create-Long-Term-Value-Through-Spin-Off-of-Health-Care-Business/default.aspx

The spin-off will be tax-free for US shareholders. 3M will initially retain a 19.9% equity stake in the yet-unnamed healthcare company.

Note: The planned split-off/merger of 3M’s food-safety business with NEOG remains on track for a 2022 closing.

[DewDiligence]

3M executes the “Texas two-step” to contain earplug liability:

https://investors.3m.com/news/news-details/2022/3M-Subsidiary-Aearo-Technologies-Takes-Action-to-Efficiently-and-Equitably-Resolve-Litigation-Related-to-Combat-Arms-Earplugs/default.aspx

3M today announced it is taking action to resolve litigation related to Combat Arms Earplugs Version 2 ("Combat Arms Earplugs"). Aearo Technologies and related entities ("Aearo Technologies"), all of which are wholly-owned 3M subsidiaries, have voluntarily initiated chapter 11 proceedings seeking court supervision to help establish a trust – funded by 3M – to efficiently and equitably resolve all claims determined to be entitled to compensation.

• …Aearo Technologies was acquired by 3M in 2008 and has since operated as a wholly-owned subsidiary of 3M.

• 3M has entered into a funding agreement with Aearo Technologies to establish a trust to resolve all claims determined to be entitled to compensation, and to support Aearo Technologies as it continues to operate during the chapter 11 process.

• The claims largely relate to the previous generation Combat Arms Earplugs manufactured by Aearo Technologies, as well as discontinued Aearo Technologies mask and respirator products utilized to reduce workplace exposure to asbestos, silica, coal mine dust or occupational dusts.

• Aearo Technologies has indemnified 3M for obligations related to the claims.

• 3M has committed $1 billion to fund the trust, based on the analysis of an experienced estimator of claims in chapter 11.

• 3M has also committed an additional $240 million to fund projected related case expenses.

• 3M will provide additional funding if required under the terms of the agreement.

As a result, 3M recorded a total pre-tax charge of $1.2 billion, or $1.66 per share, and reflected it as an adjustment in arriving at its results, adjusted for special items.

The $1.2B charge is a pittance, of course, compared to the exposure if 3M had continued to litigate all of the cases without the bankruptcy filing.

If this maneuver stands up to legal scrutiny, it will be a huge win for 3M shareholders and will remove a major overhang on the share price.

[bar1080]

"3M Has 64th Annual Dividend Increase Despite Headwinds And Legal Risk"

"Conclusion
Despite a not insignificant level of headwinds and the ever present legal risk, we still believe that due to the massive expanse of 3M's product portfolio and long history of delivering quality products, it is a good choice for a solid dividend yield on a blue-chip."

https://seekingalpha.com/article/4522882-3m-has-64th-annual-dividend-increase-despite-headwinds-and-legal-risk

[DewDiligence]

3M settles with Belgium—will take $360M charge to 2Q22 earnings:

https://www.sec.gov/ix?doc=/Archives/edgar/data/0000066740/000006674022000056/mmm-20220706.htm

https://www.sec.gov/Archives/edgar/data/0000066740/000006674022000056/a76228kex-991.htm

[DewDiligence]

3M updates Belgian manufacturing status and environmental-remediation program:

https://www.sec.gov/ix?doc=/Archives/edgar/data/0000066740/000006674022000052/mmm-20220610.htm

As previously disclosed in the Company’s SEC filings, 3M Belgium has been working through certain environmental matters with relevant Belgian government agencies in connection with operations at 3M Belgium’s Zwijndrecht facility, including those related to a wastewater discharge permit modification and air emissions. Actions by the Belgian government resulted in the idling of certain manufacturing processes at the facility.

As an update, 3M Belgium has received approval to begin the process toward restarting its manufacturing operations at the Zwijndrecht facility, following the Company’s previously announced investment in new and additional technologies to significantly reduce PFAS discharges and emissions from the facility. 3M Belgium expects the process for restarting previously-idled operations at the facility to take at least several weeks. Belgian government authorities continue to maintain oversight of 3M Belgium’s operations and compliance with applicable requirements at the Zwijndrecht facility.

As also previously disclosed, the Company has been working with Belgian government agencies to address remediation related to legacy manufacturing of PFAS (PFOA/PFOS) at the Zwijndrecht facility. In addition to the investments the Company previously announced to advance remedial actions for the Zwijndrecht community to address such legacy manufacturing at the facility, the Company is in discussions with the Belgian government authorities regarding additional investments to fund further remediation actions related to PFAS (PFOA/PFOS) previously produced at the Zwijndrecht facility.

In other words, good news and bad news but mostly good (IMO).

[DewDiligence]

3M expects $300M revenue_hit_in_2Q22_from China’s COVID lockdowns:

https://finance.yahoo.com/news/3m-expects-300-million-revenue-152459655.html

3M is unusual among multinational firms in that almost all of what 3M sells in China it manufactures in China. The COVID lockdowns forced the temporary closure of some of 3M’s manufacturing sites in China.

This was stated on today’s Bernstein webcast.

[DewDiligence]

3M’s earplug-litigation scorecard for “bellwether” cases—(updated):

• 6 wins by jury verdict
• 8 wins by summary dismissal
• 10 losses by jury verdict
• zero cases settled

[DewDiligence]

3M ordered to pay $77.5M in earplug case—largest_award_ yet:

https://finance.yahoo.com/news/1-3m-ordered-pay-77-173614314.html

[DewDiligence]

Oops! I was only off by one log, LOL.

[bar1080]

No "Plastic bubble is a $175 million market in the U.S. and the vast majority of the product is not recycled. "

[DewDiligence]

Cushion Lock—another innovative product from 3M:

https://finance.yahoo.com/news/scotch-brand-cushion-lock-protective-171000963.html

…Cushion Lock [is] a sustainable solution made from 100% recycled paper that protects products well, is easy to use and is easy to recycle. [It]…expands by 60 times its original volume when slight tension is applied as the paper is unrolled. The Japanese art of kirigami inspired this design innovation that turns a flat sheet of paper into a three-dimensional product. Combining the art with precisely engineered cuts and folds, Cushion Lock replicates the protective and cushioning qualities of plastic bubble while eliminating the need for plastic -- filling packing boxes with less material and without the additional packing supplies typically required to secure and stabilize contents. The wrap tears by hand and its advanced self-locking technology readily fastens to itself, no scissors or tape needed to cut and secure.

Plastic bubble wrap is a $1.75B market in the US alone.

[DewDiligence]

3M’s earplug-litigation scorecard for “bellwether” cases:

• 6 wins by jury verdict
• 8 wins by summary dismissal
• 8 losses by jury verdict
• zero cases settled

Two more bellwether cases are going to trial in May 2022. (Source: Today’s 1Q22 CC.)

[DewDiligence]

1Q22 CC transcript of prepared remarks:

https://s24.q4cdn.com/834031268/files/doc_financials/2022/q1/Q1-2022-Transcript.pdf