CLAIM #42436 · 3M Company (MMM) · 2024Q1 earnings call · Apr 30, 2024 · due Dec 31, 2025
“So there's a little bit of drag next year, but I -- it's not big. I would just say the first half of this year will be slightly heavier than the second.”
Monish Patolawala · CFO
In context
“or Combat Arms. And in fact, for Combat Arms, we have -- we are working on an arbitration to recover that. So as you know, these things take some time to work through, and that's what the teams are working on. And we'll keep you posted as soon as we come to know on what that number could look like. Operator: We go next now to Brett Linzey of Mizuho. Brett Linzey: Congrats to Mike. Michael Roman: Thanks, Brett. Brett Linzey: Yes. I want to come back to the portfolio and the geographic prioritization. So you called out the 100 basis points headwind in '24. Should we think of the first quarter as the starting point and just simply anniversary that headwind for the balance of the year and it's complete? Or is this more of a multiyear initiative with some top line drag? Monish Patolawala: So there's a little bit of drag next year, but I -- it's not big. I would just say the first half of this year will be slightly heavier than the second. But directionally, I would say, yes, you can use the first quarter as the math that gets you across the 4 quarters. Brett Linzey: Okay. Great. I guess the follow-up, you called out some contribution from those initiatives in each of the segments. Are you able to size what that benefit is? And I would imagine it's sort of structural, but any color would be great. Monish Patolawala: Yes. I would just say when we look at it in total is why are we doing these portfolio moves or geographic moves. It comes down to it allows us to do better focus, better prioritization. So at the end of the day, you're going to see it in multiple places. You're going to see better sales growth in other products because we're exiting these and the teams can focus, whether it's ad, merch, et cetera. You will se”
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SEC filings for MMM ↗ · Claim quote is verbatim from the 2024Q1 earnings call.