CLAIM #42268 · 3M Company (MMM) · 2023Q1 earnings call · Apr 25, 2023 · due Dec 31, 2023
“But with that said, just for the year, again, we are maintaining guidance, which includes the restructuring charge of $700 million to $900 million for the program. We expect half of that will be incurred in 2023.”
Monish Patolawala · CFO
In context
“then translates to an EPS of $1.50 to $1.75. Included in that, Andy, in that $1.50 to $1.75 is a restructuring charge for the actions that we’ve announced today of $0.25 to $0.35. So if you exclude that for a moment, then on an apples-to-apples basis, you’re looking at $1.85 to $2. And the delta, if your question is about 1Q versus 2Q is the items you correctly said, which is some more investments as we think – as we look at the second quarter and the second half and the future, investments that we believe we want to take advantage of the markets as they get better in the second half, continuing to – but we will still continue to remain prudent with our investments depending on how the market evolves. And then it’s the tax rate and some of the non-op that just sequentially looks tighter. But with that said, just for the year, again, we are maintaining guidance, which includes the restructuring charge of $700 million to $900 million for the program. We expect half of that will be incurred in 2023. And the benefits from that program are also $700 million to $900 million. And we expect the benefits – half of those benefits also to show up in 2023. Just for you to know and for others, we’ve announced a significant announcement today. Some of them are organizational changes and business combinations or division combinations. We will be working through all of the reporting – our reporting on the new division basis. We plan to do that from 1Q 2024 onwards.. Hopefully, that answers your question, Andy. Andrew Kaplowitz: Yes, Monish. That’s helpful. And then, Mike, I wanted to ask you, $700 million to $900 million cost takeout, obviously, a relatively large program. How do you avoid business disruption and/or lower growth given all the changes you’re going to make here? And then assuming t”
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SEC filings for MMM ↗ · Claim quote is verbatim from the 2023Q1 earnings call.