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CLAIM #42498 · 3M Company (MMM) · 2024Q3 earnings call · Oct 22, 2024 · due Dec 31, 2026

That will start to bear fruit into next year, maybe the end of next year and into ‘26.

William Brown · CEO

PENDING
graded after results covering Dec 31, 2026 are reported

How to check this claim

Look at: Company revenue growth rate relative to end market growth rate (organic sales growth vs. market GDP/end-market growth proxy)

It came true if: Company organic sales growth rate exceeds cited end-market growth rate (~2.5-2.7% GDP proxy) by end of 2026

Where: management commentary and reported organic revenue growth in quarterly earnings releases/10-K

In context

. It’s 1.2% for the year, steps up a little bit going into next year. GDP in the 2.5%, 2.7% range. Again, that’s kind of in the same line next year. So it’s low single-digits. And I think overall, we are performing kind of in line with that, including auto build, semis, electronics, all this consumer, all that together, trending in line. I look at NPI, and as that matures, early good signals were up 10% on numbers of launches this year over last. We see that rate accelerating 25%. But stepping back, we’re still in order of magnitude less than we were at the peak days in terms of how many products we’ve launched in the marketplace. So we’ve got to get that R&D engine moving again. That is going to be essential to improving on our growth rate and starting to hit and then outgrow the market. That will start to bear fruit into next year, maybe the end of next year and into ‘26. And that’s why it took a lot of care last time and earlier to say we have got to get better at selling what we have on the market today, which means we got to work our sales force and all those pieces of it. Do we have gaps in our sales force coverage? Do we have the right incentive structures, the right training, the right people in the field, the right distributors? Are we pricing correctly? Do we have cross-sell opportunities? All of these things will drive growth. And I think we’ve got to pull all those levers. And it’s why I came back earlier on in this conversation, it really doubled down on OTIF, because we are losing business if we are not delivering it on-time in-full to customers. We know it. We see it every single day. So that is the nearest term lever we can pull is getting be

Verify independently

SEC filings for MMM · Claim quote is verbatim from the 2024Q3 earnings call.