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CLAIM #42506 · 3M Company (MMM) · 2024Q3 earnings call · Oct 22, 2024 · due Dec 31, 2025

It gives us confidence to expand operating margins next year while driving top line growth, and we will give more specific details this year.

Anurag Maheshwari · CFO

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versus commitment · official band 5 percent
Committed
expand operating margins next year while driving top line growth, and we will give more specific details this year
Reported
we are updating our margin expansion expectations to 180 to 200 basis points for the year

In context

urag Maheshwari: Yes. And just to add, right, we have grown three quarters consistently 1%. As Bill said, we will give more color as time goes by over there. To Steve’s question earlier, we said we can grow operating margin at a pretty healthy clip given all the levers we have. As we go into next year, as you are aware, we do certain headwinds from higher pension expense, lower interest income. Of course, we mitigate that through share repurchase, but that’s a $0.30 headwind that we see from below the line items. But if I kind of look at what’s we have driving in terms of all the discussion we just had around the factory, the supply chain, looking at the indirect cost and all the productivity along with that, along with the tailwind, we can see with the reduction in restructuring charges. It gives us confidence to expand operating margins next year while driving top line growth, and we will give more specific details this year. Chris Snyder: Appreciate that. And then if I could just follow-up on maybe some of the portfolio pruning. Is it fair to assume that whatever business the company decides to leave, they will get paid for it? Not – no more organic exit or at least nothing very sizable in terms of organic exit? I understand maybe certain SKUs or product lines can come and go. Bill Brown: Yes. Look, I think there is going to be, over time, natural portfolio pruning in terms of SKUs. As you bring new products on, it may obsolete other things that need to go out. That churn, that part of – that’s a normal part of business, and that should all be sort of absorbed within your normal organic growth contributions that we should be growing at the market for. So, that is – as you just pointed out, Chris, a distinct f

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