3M Q1 Highlights: 9% Sales Decline, Earnings Beat, Additional Jobs Cuts, Savings & More - 3M (NYSE:MMM)

3M Co MMM reported Q1 sales of $8.03 billion, down 9.0% Y/Y, beating the consensus of $7.49 billion.
Organic sales fell 4.9% Y/Y, which included headwinds of 1.3% from divestitures and 2.8% from foreign currency translations.
Adjusted sales were down 9.7% Y/Y on an organic sales decline of 5.6% Y/Y, with a 3.4% headwind from the lower disposable respirator demand and the 2022 exit from Russia.
Adjusted EPS of $1.97 beat the consensus of $1.58.
Adjusted operating margin fell by 410 bps to 17.9%.
Adjusted free cash flow grew 24% Y/Y to $0.9 billion.
Restructuring Action: 3M announced restructuring actions which will impact around 6,000 positions globally, along with a reduction of 2,500 global manufacturing roles announced in January 2023.
The company expects total pre-tax charges of $700 million to $900 million (including previously announced actions in January 2023), with around half of these charges projected in 2023 ($175 million-$250 million in Q2 2023).
3M expects annual pre-tax savings of $700 million-$900 million post-completion of restructuring actions
FY23 Outlook Reaffirmed: 3M continues to expect -6% to -2% adjusted total sales growth and -3% to flat adjusted organic sales growth.
The company still expects adjusted EPS of $8.50 - $9.00 vs the consensus of $8.60.
Price Action: MMM shares are trading higher by 1.37% at $106.50 in the premarket on the last check Tuesday.