Replies to post #523 on 3M Company (MMM)

[DewDiligence]

1Q22 CC transcript of prepared remarks:

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

[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]

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 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