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CLAIM #42290 · 3M Company (MMM) · 2023Q2 earnings call · Jul 25, 2023 · due Dec 31, 2023

We expect our year-on-year organic growth rates in electronics to remain negative in the second half, however, improve versus down nearly 30% in the first half as we start to lap easier comps.

Monish Patolawala · CFO

PENDING
graded after results covering Dec 31, 2023 are reported

In context

roductivity actions, strong spending discipline and price. Partially offsetting these benefits were headwinds from lower sales volume, restructuring costs and inflation impacts. Moving to Transportation and Electronics on Slide 10 which posted Q2 adjusted sales of $1.9 billion. Adjusted organic growth declined 2.4% year-on-year, largely due to the continued decline in demand for electronics. Our auto OEM business increased approximately 21% year-on-year, approximately 600 basis points higher than global car and light truck builds. Our electronics business continues to be impacted by soft end-market demand for electronics. As a result, this business experienced a year-on-year decline in adjusted organic sales of approximately 22%. Electronic end markets continue to remain highly uncertain. We expect our year-on-year organic growth rates in electronics to remain negative in the second half, however, improve versus down nearly 30% in the first half as we start to lap easier comps. Turning to the rest of Transportation and Electronics; transportation safety grew high single digits organically, while commercial [indiscernible] digits year-on-year. Transportation and Electronics delivered $369 million in adjusted operating income, down 19% year-on-year. Adjusted operating margins were 19.8%, down 3.6 percentage points year-on-year, however, increased 3.1 percentage points sequentially. Margin headwinds were driven by sales volume declines, restructuring costs and inflation impacts. These headwinds were partially offset by benefits from strong spending discipline, productivity actions and pricing. Looking at our Health Care business on Slide 11; Q2 sales were $2.1 billion with organic growth up slightly versus last year. Organic sales in oral care were up low single di

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SEC filings for MMM · Claim quote is verbatim from the 2023Q2 earnings call.