3M (MMM) 2020 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the 3M second quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded Tuesday, July 28, 2020.

女士們，先生們，謝謝你們的支持。歡迎參加 3M 第二季度財報電話會議。 （操作員說明）提醒一下，本次會議將於 2020 年 7 月 28 日星期二錄製。

I would now like to turn the call over to Bruce Jermeland, Vice President of Investor Relations at 3M.

我現在想將電話轉給 3M 投資者關係副總裁 Bruce Jermeland。

Thank you, and good morning, everyone. Welcome to our second quarter 2020 business review. With me today are Mike Roman, 3M's Chief Executive Officer; along with Nick Gangestad and Monish Patolawala, our Chief Financial Officers. As you may know, Nick will be retiring at the end of July. Monish joined the 3M team on July 1, succeeding Nick as CFO. Mike, Nick and Monish will make some formal comments, and then we'll take your questions.

謝謝大家，大家早上好。歡迎來到我們的 2020 年第二季度業務回顧。今天和我在一起的是 3M 的首席執行官 Mike Roman；以及我們的首席財務官 Nick Gangestad 和 Monish Patolawala。如您所知，尼克將於 7 月底退休。 Monish 於 7 月 1 日加入 3M 團隊，接替 Nick 擔任首席財務官。 Mike、Nick 和 Monish 將發表一些正式評論，然後我們會回答您的問題。

Please note that today's earnings release and slide presentation accompanying this call are posted on our Investor Relations website at 3M.com under the heading Quarterly Earnings. Please turn to Slide 2.

請注意，本次電話會議隨附的今天的收益發布和幻燈片演示已發佈在我們的投資者關係網站 3M.com 的“季度收益”標題下。請轉到幻燈片 2。

Let me remind you to mark your calendars for our third quarter earnings call, which will take place on Tuesday, October 27. Please take a moment to read the forward-looking statement on Slide 3. During today's conference call, we'll make certain predictive statements that reflect our current views about 3M's future performance and financial results. These statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Item 1A of our most recent Form 10-Q lists some of the most important risk factors that could cause actual results to differ from our predictions.

讓我提醒您為我們將於 10 月 27 日星期二舉行的第三季度財報電話會議標記您的日曆。請花點時間閱讀幻燈片 3 上的前瞻性聲明。在今天的電話會議中，我們將確定反映我們當前對 3M 未來業績和財務業績的看法的預測性陳述。這些陳述基於對受風險和不確定性影響的未來事件的某些假設和預期。我們最近的 10-Q 表的第 1A 項列出了一些可能導致實際結果與我們的預測不同的最重要的風險因素。

Finally, throughout today's presentation, we will be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in the attachment to today's press release. Please note we have provided segment and total company adjusted EBITDA reconciliations for reference in today's press release attachments as part of our non-GAAP measures.

最後，在今天的演講中，我們將提及某些非公認會計準則財務指標。可以在今天的新聞稿附件中找到對非公認會計原則措施的調節。請注意，作為我們非公認會計原則措施的一部分，我們在今天的新聞稿附件中提供了部門和公司調整後的 EBITDA 對賬供參考。

Please turn to Slide 4, and I'll hand it off to Mike. Mike?

請翻到幻燈片 4，我會把它交給邁克。麥克風？

Thank you, Bruce. Good morning, everyone. I hope you and your families are staying safe and healthy, and I thank you for joining us. We continue to fight the pandemic from all angles to ensure the safety of our employees, health care workers, first responders and the public.

謝謝你，布魯斯。大家，早安。我希望您和您的家人保持安全和健康，感謝您加入我們。我們繼續從各個角度抗擊疫情，以確保我們的員工、醫護人員、急救人員和公眾的安全。

In a highly uncertain environment, where economic activity was restricted by global lockdowns, we executed well and delivered another strong operational performance in the second quarter. We posted solid margins and robust cash flow while strengthening our balance sheet, innovating for our customers, investing in the future and continuing our transformation. Our value model is strong, and we are taking action on a number of fronts to lead through this crisis and emerge even stronger.

在高度不確定的環境中，經濟活動受到全球封鎖的限制，我們執行良好，並在第二季度再次取得強勁的運營業績。我們公佈了穩健的利潤率和強勁的現金流，同時加強了我們的資產負債表，為我們的客戶進行創新，投資於未來並繼續我們的轉型。我們的價值模型很強大，我們正在多條戰線上採取行動，以引領這場危機並變得更加強大。

While there remains a great deal of economic uncertainty, we are seeing an improvement in sales trends in July across all businesses and geographies as we start the third quarter. And Monish will provide additional comments later in the call.

儘管仍然存在很大的經濟不確定性，但隨著第三季度的開始，我們看到 7 月份所有業務和地區的銷售趨勢都有所改善。 Monish 將在稍後的電話會議中提供其他評論。

I am proud of how our team is leading through these unprecedented times, and I thank all 3Mers for their tireless efforts to serve those who count on us. Please turn to Slide 5.

我為我們的團隊如何在這些前所未有的時期發揮領導作用感到自豪，我感謝所有 3Mers 為服務那些依賴我們的人所做的不懈努力。請轉到幻燈片 5。

Our COVID-19 response starts with a steadfast commitment to the health of our employees. We have robust safety protocols in our manufacturing plants and distribution sites, enabling us to effectively protect our people while maintaining supply chain operations.

我們的 COVID-19 響應始於對員工健康的堅定承諾。我們的製造工廠和配送場所擁有強大的安全協議，使我們能夠在維持供應鏈運營的同時有效保護員工。

For remote employees, we have developed a phased approach for their return to the workplace with enhanced safety measures and emphasis on flexibility for individuals. We have had our colleagues returned to the workplace in 2 dozen countries, mainly in Asia and EMEA, along with our global R&D community. And we are adjusting based on government guidelines and the evolution of the pandemic across the world. As we protect employees, we work around the clock to protect the safety of all people, including health care workers and first responders. 3M is making and distributing more respirators than ever before, though demand continues to far outpace what the entire industry can supply.

對於遠程員工，我們制定了一種分階段的方法讓他們返回工作場所，加強安全措施並強調個人的靈活性。我們已經讓我們的同事回到了 20 個國家的工作場所，主要是在亞洲和歐洲、中東和非洲地區，以及我們的全球研發社區。我們正在根據政府的指導方針和全球大流行的演變進行調整。在保護員工的同時，我們夜以繼日地工作以保護所有人的安全，包括醫護人員和急救人員。 3M 製造和分銷的呼吸器比以往任何時候都多，儘管需求繼續遠遠超過整個行業的供應量。

In the first half of the year, 3M manufactured 800 million respirators globally, with half distributed in the U.S., primarily to Health Care and FEMA. For the full year, we expect to produce 2 billion respirators globally, more than a threefold increase versus 2019. We continue to make investments and partner with the U.S. Department of Defense and other governments to bring additional global capacity online.

今年上半年，3M 在全球生產了 8 億個呼吸器，其中一半分佈在美國，主要用於醫療保健和 FEMA。全年，我們預計全球將生產 20 億個呼吸器，比 2019 年增長三倍以上。我們將繼續投資並與美國國防部和其他政府合作，以增加全球產能。

We are also working with federal, state and local governments to deliver respirators where the need is greatest. At the same time, we remain vigilant in fighting fraud and price gouging. To date, 3M has filed 18 lawsuits and removed over 7,000 counterfeit websites, protecting people from bad actors.

我們還與聯邦、州和地方政府合作，在最需要的地方提供呼吸器。同時，我們在打擊欺詐和價格欺詐方面保持警惕。迄今為止，3M 已提起 18 起訴訟，並刪除了 7,000 多個假冒網站，保護人們免受不良行為者的侵害。

Beyond personal protective equipment, 3M Science is fighting COVID-19 in other areas as well. Our membrane technologies help improve blood oxygenation procedures and our biopharma solutions support the development of needed vaccines and therapeutics.

除了個人防護設備外，3M Science 還在其他領域與 COVID-19 作鬥爭。我們的膜技術有助於改善血液氧合程序，我們的生物製藥解決方案支持開發所需的疫苗和療法。

Earlier this month, we announced a collaboration with MIT on a diagnostic COVID-19 test that aspires to make testing faster, more broadly available and less expensive. The project has received approval from the National Institutes of Health, and we are working as fast as we can to develop a low-cost, highly accurate device that can be mass produced.

本月早些時候，我們宣布與麻省理工學院合作開展 COVID-19 診斷測試，旨在使測試更快、更廣泛、更便宜。該項目已獲得美國國立衛生研究院的批准，我們正在盡快開發一種可大規模生產的低成本、高精度設備。

I will now turn to our second quarter results on Slide 6. The financial impact of the pandemic remained mixed across 3M during Q2. We continue to see strong demand in personal safety, along with other areas such as home improvement, general cleaning and biopharma filtration. At the same time, we experienced steep but expected declines in other end markets, including medical and dental elective procedures, automotive OEM and aftermarket and general industrial.

我現在將轉向幻燈片 6 上的第二季度業績。在第二季度，大流行對 3M 的財務影響仍然喜憂參半。我們繼續看到對人身安全的強勁需求，以及家居裝修、一般清潔和生物製藥過濾等其他領域。與此同時，我們在其他終端市場經歷了急劇但預期的下降，包括醫療和牙科選擇性手術、汽車 OEM 和售後市場以及一般工業。

Geographically, while organic sales in Asia Pacific declined 8%, we saw year-over-year improvement in China, up 3% in the quarter versus down 11% in Q1. Organic trends in EMEA and the Americas remained consistent throughout the quarter, both declining in the mid-teens each month. All in, organic sales company-wide was minus 13%, with adjusted earnings of $1.78 per share. While growth conditions were challenging, our operational execution was strong.

從地域上看，雖然亞太地區的有機銷售額下降了 8%，但我們看到中國的銷售額同比有所改善，本季度增長 3%，而第一季度則下降 11%。 EMEA 和美洲的有機趨勢在整個季度保持一致，每個月都在十幾歲左右下降。總而言之，全公司的有機銷售額為負 13%，調整後每股收益為 1.78 美元。雖然增長條件充滿挑戰，但我們的運營執行力很強。

We expanded adjusted EBITDA margins to 26.5%, up 110 basis points year-on-year. In the second quarter, we delivered $400 million in cost savings versus last year as we aggressively managed expenses to offset COVID-19 impacts and associated restructuring. This cost discipline, along with effective capital allocation, enabled us to increase our adjusted free cash flow to $1.5 billion in the second quarter. And Nick will walk you through the details. Please turn to Slide 7.

我們將調整後的 EBITDA 利潤率擴大至 26.5%，同比上升 110 個基點。在第二季度，我們與去年相比節省了 4 億美元的成本，因為我們積極管理費用以抵消 COVID-19 的影響和相關的重組。這種成本紀律以及有效的資本分配使我們能夠在第二季度將調整後的自由現金流增加到 15 億美元。尼克將帶您了解詳細信息。請轉到幻燈片 7。

Importantly, while we manage near-term uncertainty, we continue to advance our 4 strategic priorities: portfolio, transformation, innovation and people and culture to deliver value for our customers and shareholders. We finalized the sale of our drug delivery business in May, enabling us to focus more on our core Health Care portfolio. We are encouraged that the benefits we are seeing from the new global operating model we implemented this year, a significant step in our transformation. This includes our new enterprise operations team, which is enabling us to reduce cycle times and improve the customer experience. Nearly all of our plants and distribution centers are operational, and we have worked with our partners to ensure consistency of supply.

重要的是，在我們管理近期不確定性的同時，我們繼續推進我們的 4 個戰略重點：投資組合、轉型、創新以及人員和文化，以為我們的客戶和股東創造價值。我們在 5 月完成了藥物輸送業務的出售，使我們能夠更加專注於我們的核心醫療保健產品組合。我們感到鼓舞的是，我們從今年實施的新全球運營模式中看到了好處，這是我們轉型的重要一步。這包括我們新的企業運營團隊，這使我們能夠減少週期時間並改善客戶體驗。我們幾乎所有的工廠和配送中心都在運作，我們與合作夥伴合作以確保供應的一致性。

Our new structure streamlines decision-making and allows us to adjust faster than ever to the external environment, all of which help our customers. As just one example, one of our U.S. plants recently pivoted to manufacturing hand sanitizer almost overnight, moving from formulation to production in less than 72 hours. In addition, we're accelerating our efforts on automation and robotics and introducing new digital capabilities such as virtual selling tools to deliver on our promises to customers.

我們的新結構簡化了決策過程，使我們能夠比以往更快地適應外部環境，所有這些都有助於我們的客戶。舉個例子，我們的一家美國工廠最近幾乎在一夜之間轉向生產洗手液，在不到 72 小時內從配方轉向生產。此外，我們正在加快自動化和機器人技術的努力，並引入新的數字功能，例如虛擬銷售工具，以兌現我們對客戶的承諾。

At the heart of 3M is innovation and our ability to apply science to solve critical customer needs. We continue to invest in R&D and drive innovations to solve big challenges like air quality, automotive electrification and food safety. Just a few of our priority growth platforms, which are outperforming in the markets they serve. For example, our air quality platform grew double digits in the quarter, as we introduce new indoor air quality solutions through our innovation and increased investments in capital.

3M 的核心是創新和我們運用科學解決關鍵客戶需求的能力。我們繼續投資研發並推動創新，以解決空氣質量、汽車電氣化和食品安全等重大挑戰。我們的少數優先增長平台在其服務的市場中表現出色。例如，我們的空氣質量平台在本季度實現了兩位數的增長，因為我們通過創新和增加資本投資引入了新的室內空氣質量解決方案。

We are also finding new ways to engage our people, strengthen our culture and advance our core values. We continue to step up our leadership in sustainability, and our annual sustainability report released in May includes a comprehensive look at our progress. As part of this commitment, we are proactively managing PFAS, guided by the principles of sound science, corporate responsibility and transparency. For example, in March, we launched a clearinghouse to share research on testing, measurement and remediation. A commitment we made at our congressional testimony last fall. You can find this clearinghouse and all the latest information on PFAS on our website at 3M.com. In addition, we provide regular updates in our 10-Q filings.

我們還在尋找新的方式來吸引我們的員工、加強我們的文化並提升我們的核心價值觀。我們繼續加強我們在可持續發展方面的領導地位，我們在 5 月發布的年度可持續發展報告全面審視了我們的進展。作為這一承諾的一部分，我們以健全的科學、企業責任和透明度為指導，積極管理 PFAS。例如，在 3 月份，我們啟動了一個信息交換所，以分享有關測試、測量和補救的研究。我們去年秋天在國會作證時做出的承諾。您可以在我們的網站 3M.com 上找到該票據交換所以及有關 PFAS 的所有最新信息。此外，我們在 10-Q 文件中提供定期更新。

We are also fulfilling our commitment to comprehensive reviews of all 3M manufacturing operations to ensure adherence to environmental requirements, company policies and our values. As we shared previously, we continue to work with communities where we manufacture, along with government officials and regulators, including the EPA, to advance our environmental stewardship.

我們還履行了對所有 3M 製造業務進行全面審查的承諾，以確保遵守環境要求、公司政策和我們的價值觀。正如我們之前所分享的，我們將繼續與我們生產的社區以及政府官員和監管機構（包括 EPA）合作，以推進我們的環境管理。

Last week, we announced an agreement with the Alabama Department of Environmental Management to resolve matters related to previously disclosed PFAS discharges at our Decatur facility. This is part of our commitment to address contamination at sites where we manufactured or disposed of PFAS. With respect to PFAS litigation, we anticipate the earliest trial date will now be in 2021.

上週，我們宣布與阿拉巴馬州環境管理部達成協議，以解決與我們迪凱特工廠先前披露的 PFAS 排放有關的問題。這是我們致力於解決我們製造或處置 PFAS 的場所污染問題的一部分。關於 PFAS 訴訟，我們預計最早的審判日期現在將在 2021 年。

Beyond our environmental responsibility, we know we and others must do more to address injustice and inequality. The death of George Floyd here in Minnesota was jarring for all 3Mers, especially our African-American employees. At 3M, we stand for equity, fairness and social justice, and we will be part of the solution by listening, understanding and then acting.

除了我們的環境責任，我們知道我們和其他人必須採取更多措施來解決不公正和不平等問題。喬治·弗洛伊德 (George Floyd) 在明尼蘇達州的死亡讓所有 3Mers 公司，尤其是我們的非裔美國員工感到震驚。在 3M，我們代表公平、公平和社會正義，我們將通過傾聽、理解和行動成為解決方案的一部分。

Based on insights from our employees and communities, we have 2 focus areas: first, we are identifying the most impactful actions to accelerate inclusion and diversity within 3M. While we've made good progress in recent years, we have much more to do. At the same time, we are working with other companies on actions that will make a difference here in Minnesota and we've made initial investments as part of these efforts. We are also working with stakeholders to develop a long-term plan to support economic opportunities and development in communities of color, address the education gap and advance social justice.

根據我們員工和社區的見解，我們有兩個重點領域：首先，我們正在確定最有影響力的行動，以加速 3M 內部的包容性和多樣性。儘管近年來我們取得了良好進展，但我們還有很多工作要做。與此同時，我們正在與其他公司合作，採取行動，在明尼蘇達州有所作為，我們已經進行了初步投資，作為這些努力的一部分。我們還與利益相關者合作制定長期計劃，以支持有色人種社區的經濟機會和發展，解決教育差距並促進社會正義。

It is vital that companies step up to lead change to really make a difference this time. I am personally leading these initiatives, and we will provide you with updates as we move forward. Please turn to Slide 8.

至關重要的是，公司要加緊引領變革，這一次才能真正發揮作用。我親自領導這些舉措，我們將在前進的過程中為您提供最新信息。請轉到幻燈片 8。

Before turning the call to Nick, I would like to make a few comments about our CFO transition. First, I want to thank Nick for his many contributions throughout 35 years at 3M. He has been an outstanding leader and a great colleague and has created tremendous value for our company and our shareholders. In 6 years as CFO, Nick's guidance has been especially valuable as he helped lead our transformation and our work to optimize our portfolio and position 3M for the future. I wish Nick and his family all the best in the future.

在將電話轉給尼克之前，我想對我們的首席財務官過渡發表一些評論。首先，我要感謝尼克在 3M 的 35 年中做出的許多貢獻。他是一位傑出的領導者和一位偉大的同事，為我們公司和我們的股東創造了巨大的價值。在擔任首席財務官的 6 年中，尼克的指導特別有價值，因為他幫助領導了我們的轉型以及我們優化我們的投資組合和為未來定位 3M 的工作。我希望尼克和他的家人在未來一切順利。

I'm also excited to welcome Monish to our leadership team. Most recently, Monish was CFO at GE Healthcare, a $17 billion business. His experience leading health care and industrial businesses, along with driving operational transformation, is already making an immediate impact for 3M. Monish is an ideal fit for our enterprise and for our culture. And later in the call, he will make a few comments about our perspective on the third quarter.

我也很高興歡迎 Monish 加入我們的領導團隊。最近，Monish 擔任了價值 170 億美元的 GE Healthcare 的首席財務官。他領導醫療保健和工業業務以及推動運營轉型的經驗已經對 3M 產生了直接影響。 Monish 非常適合我們的企業和我們的文化。稍後在電話會議中，他將對我們對第三季度的看法發表一些評論。

I will now turn the call over to Nick for the details on Q2. Nick?

我現在將把電話轉給 Nick，以了解 Q2 的詳細信息。缺口？

Thank you, Mike, and good morning, everyone. Please turn to Slide 9. Company-wide second quarter sales were $7.2 billion, with adjusted operating income of $1.4 billion and adjusted operating margins of 19.6%. On the right-hand side of the slide, you see the components of our margin performance in the second quarter. The impact of the pandemic was varied and numerous across the business and operations. The biggest factor negatively affecting Q2 operating margins was the impact of the pandemic on global customer demand, which resulted in nearly a 14% year-on-year decline in organic sales volumes.

謝謝你，邁克，大家早上好。請轉到幻燈片 9。公司範圍內的第二季度銷售額為 72 億美元，調整後的營業收入為 14 億美元，調整後的營業利潤率為 19.6%。在幻燈片的右側，您可以看到我們第二季度的利潤率表現的組成部分。大流行對整個業務和運營的影響是多種多樣的。對第二季度營業利潤率產生負面影響的最大因素是大流行對全球客戶需求的影響，導致有機銷售額同比下降近 14%。

In addition, during the quarter, we undertook restructuring actions, resulting in a Q2 charge of $58 million due to the impact of the pandemic. These headwinds were partially offset by aggressive cost management during the quarter, which reduced costs by approximately $400 million year-on-year. Also providing a year-on-year benefit to operating margins is a restructuring charge in last year's second quarter. All in, these benefits were more than offset by the decline in organic sales volume and restructuring actions resulting in a 100 basis point reduction to second quarter margins versus last year.

此外，在本季度，我們採取了重組行動，由於大流行的影響，導致第二季度的費用為 5800 萬美元。這些不利因素部分被本季度積極的成本管理所抵消，成本同比減少了約 4 億美元。去年第二季度的重組費用也為營業利潤率提供了同比收益。總而言之，這些收益被有機銷售額的下降和重組行動所抵消，導致第二季度的利潤率比去年下降了 100 個基點。

Acquisitions and divestitures reduced margins by 80 basis points due to Acelity purchase accounting impacts. Higher selling prices, along with lower raw material costs, contributed 70 basis points to second quarter margins. And finally, foreign currency, net of hedging impacts, reduced margins by 10 basis points. Overall, we effectively managed cost throughout the quarter in a very dynamic and challenging global economy. And as Mike mentioned, we expanded EBITDA margins by 110 basis points year-on-year to 26.5%. Let's now turn to Slide 10 for a closer look at earnings per share.

由於 Acelity 購買會計的影響，收購和資產剝離使利潤率降低了 80 個基點。較高的售價以及較低的原材料成本為第二季度的利潤率貢獻了 70 個基點。最後，扣除對沖影響後，外幣的利潤率降低了 10 個基點。總體而言，在充滿活力和挑戰的全球經濟中，我們在整個季度有效地管理了成本。正如邁克所說，我們將 EBITDA 利潤率同比擴大了 110 個基點，達到 26.5%。現在讓我們看一下幻燈片 10，仔細看看每股收益。

Second quarter adjusted earnings were $1.78 per share, down 16.4% year-over-year. Let me now cover the items that made up our second quarter earnings performance. Similar to the operating margin discussion on the prior slide, organic sales declines, productivity and other actions, collectively reduced year-on-year per-share earnings by $0.28. Acquisitions and divestitures reduced second quarter earnings by $0.07 per share versus last year, primarily due to the Acelity acquisition. Please note that this result includes financing costs associated with the acquisition. Foreign currency, net of hedging, was a $0.05 per share headwind in the quarter. And turning to tax rate. Our second quarter adjusted tax rate was 20.7% versus 22.3% last year, adding $0.03 to earnings per share. And finally, average diluted shares outstanding declined 1% versus Q2 last year, adding $0.02 to per-share earnings.

第二季度調整後每股收益為 1.78 美元，同比下降 16.4%。現在讓我介紹一下構成我們第二季度收益表現的項目。與上一張幻燈片上的營業利潤率討論類似，有機銷售額下降、生產力和其他行動共同使每股收益同比減少了 0.28 美元。與去年相比，收購和資產剝離使第二季度每股收益減少了 0.07 美元，這主要是由於對 Acelity 的收購。請注意，此結果包括與收購相關的融資成本。扣除對沖的外幣在本季度是每股 0.05 美元的逆風。並轉向稅率。我們第二季度的調整後稅率為 20.7%，而去年為 22.3%，每股收益增加了 0.03 美元。最後，平均攤薄後流通股較去年第二季度下降 1%，每股收益增加 0.02 美元。

Please turn to Slide 11 for a discussion of our cash flow and balance sheet. As Mike noted, we delivered strong second quarter adjusted free cash flow of $1.5 billion, up 18% year-over-year. This increase was driven by effective working capital management, disciplined capital allocation, along with a $400 million benefit related to timing of income tax payments, which will be paid in the third quarter.

請轉到幻燈片 11 討論我們的現金流和資產負債表。正如邁克所說，我們在第二季度實現了強勁的 15 億美元的調整後自由現金流，同比增長 18%。這一增長是由有效的營運資本管理、嚴格的資本分配以及與所得稅支付時間相關的 4 億美元福利推動的，這些福利將在第三季度支付。

Through the first half of the year, adjusted free cash flow increased to $2.5 billion versus $2 billion last year as we continue to generate strong free cash flow, demonstrating the strength and resiliency of our business model. From a capital allocation perspective, our long-term strategy remains unchanged. Our first priority is to invest in our business; second, maintaining our dividend; and lastly, flexible deployment for M&A and share repurchases.

今年上半年，調整後的自由現金流從去年的 20 億美元增加到 25 億美元，因為我們繼續產生強勁的自由現金流，展示了我們商業模式的實力和彈性。從資本配置的角度來看，我們的長期戰略保持不變。我們的首要任務是投資我們的業務；第二，維持我們的股息；最後，靈活部署併購和股份回購。

Second quarter capital expenditures were $379 million. For the full year, we now anticipate CapEx expenses of approximately $1.4 billion versus $1.3 billion previously. This increase in our full year CapEx budget expectations is primarily due to the pace of projects picking back up as economic activity returns.

第二季度資本支出為 3.79 億美元。我們現在預計全年資本支出約為 14 億美元，而此前為 13 億美元。我們全年資本支出預算預期的增加主要是由於隨著經濟活動的回歸，項目的步伐加快了。

During the second quarter, we returned $846 million to our shareholders via dividends. Share repurchases remain suspended throughout the quarter given the continued global economic uncertainty. Our strong second quarter cash flow generation and disciplined capital allocation enabled us to strengthen our capital structure. We ended the quarter with $4.5 billion in cash and marketable securities on hand and reduced net debt by $1.7 billion or 10% in the second quarter.

在第二季度，我們通過股息向股東返還了 8.46 億美元。鑑於全球經濟持續不明朗，股票回購在整個季度仍處於暫停狀態。我們強勁的第二季度現金流產生和嚴格的資本分配使我們能夠加強我們的資本結構。本季度末，我們手頭有 45 億美元的現金和有價證券，第二季度淨債務減少了 17 億美元或 10%。

Please turn to Slide 12, where I will summarize the business group performance for Q2. I will start with our Safety and Industrial business, which declined 6% organically in the quarter. Personal safety saw strong double-digit organic growth, driven by continued unprecedented levels of demand for respirators globally in response to the pandemic. The balance of the Safety and Industrial portfolio declined significantly due to the global slowdown in industrial production activity during the quarter.

請轉到幻燈片 12，我將在其中總結第二季度的業務組業績。我將從我們的安全和工業業務開始，該業務在本季度有機下降了 6%。由於全球為應對大流行而對呼吸器的需求持續達到前所未有的水平，人身安全實現了強勁的兩位數有機增長。由於本季度全球工業生產活動放緩，安全和工業投資組合的餘額顯著下降。

Looking geographically, the Americas declined 9% organically, with the U.S. down mid-single digits. EMEA declined 1%, while Asia Pacific was down 4%. Safety and Industrial second quarter segment operating margins were 23.8%, up 180 basis points, driven by continued strong productivity, cost actions, and benefits from last year's restructuring.

從地理上看，美洲有機下降了 9%，美國下降了中個位數。歐洲、中東和非洲地區下降 1%，而亞太地區下降 4%。安全和工業部門第二季度的營業利潤率為 23.8%，上升了 180 個基點，這得益於持續強勁的生產力、成本行動以及去年重組帶來的好處。

Moving to Transportation and Electronics. Second quarter sales were down 19% organically compared to last year. Our electronics-related business was down 1%, with strong growth in semiconductor, factory automation and data center, which was offset by continued softness in consumer electronics, particularly smartphones. Our automotive OEM business was down 44% year-on-year, in line with the 45% decline in global car and light truck builds.

轉向運輸和電子行業。第二季度銷售額與去年相比有機下降了 19%。我們的電子相關業務下降了 1%，其中半導體、工廠自動化和數據中心的強勁增長被消費電子產品，尤其是智能手機的持續疲軟所抵消。我們的汽車 OEM 業務同比下降 44%，與全球汽車和輕型卡車製造量下降 45% 一致。

Commercial Solutions declined roughly 30% and while transportation safety and advanced materials were down mid and high teens, respectively. Geographically, Asia Pacific declined 8%, while the Americas declined 29% and EMEA was down 33%.

商業解決方案下降了大約 30%，而運輸安全和先進材料分別下降了中高水平。從地域上看，亞太地區下降 8%，美洲下降 29%，歐洲、中東和非洲下降 33%。

Transportation and Electronics second quarter operating margins were 19.7%, negatively impacted by the 19% decline in organic sales, which was partially offset by cost actions and benefits from last year's restructuring.

運輸和電子產品第二季度的營業利潤率為 19.7%，受到有機銷售額下降 19% 的負面影響，這部分被成本行動和去年重組帶來的收益所抵消。

Turning to Health Care, which experienced significant pandemic-related challenges and disruptions across the industry, declined 12% organically versus last year. Organic growth across much of our Health Care portfolio was negatively impacted by the effects of COVID, which resulted in delays in elective medical procedures and closed most dental offices around the world.

轉向醫療保健，該行業在整個行業都經歷了與大流行相關的重大挑戰和中斷，與去年相比有機下降了 12%。我們大部分醫療保健產品組合的有機增長都受到 COVID 的負面影響，導致選擇性醫療程序延遲，並關閉了全球大多數牙科診所。

These impacts were most prevalent in our oral care business, which was down nearly 60%, and medical solutions, which declined mid-single digits in Q2. Food safety declined mid-single digits as the business was impacted by the closure of food processing plants during the quarter due to worker safety concerns. A positive note, our separation and purification business grew mid-single digits. This business continues to experience strong demand for biopharma filtration solutions in support of the pharmaceuticals industry's research and manufacturing efforts to develop vaccines and therapeutic treatments for COVID.

這些影響在我們的口腔護理業務中最為普遍，下降了近 60%，而醫療解決方案在第二季度下降了中個位數。由於工人安全問題，本季度食品加工廠關閉影響了業務，食品安全下降了中個位數。積極的一面是，我們的分離和純化業務增長了中個位數。該業務對生物製藥過濾解決方案的需求持續強勁，以支持製藥行業為開發 COVID 疫苗和治療方法而進行的研究和製造工作。

Looking geographically, the Americas declined 14%, while EMEA and Asia Pacific each declined 10%. Health Care second quarter operating margins were 16.8% or down nearly 10 percentage points year-on-year. Approximately 2/3 of this decline was due to the significant reduction in organic sales, with the remaining 1/3 related to the Acelity acquisition. Looking ahead, we expect both organic growth and operating margins to improve as elective procedures return.

從地域上看，美洲下降了 14%，而 EMEA 和亞太地區各下降了 10%。醫療保健第二季度營業利潤率為 16.8%，同比下降近 10 個百分點。大約 2/3 的下降是由於有機銷售額的大幅下降，剩下的 1/3 與 Acelity 的收購有關。展望未來，我們預計隨著選擇性程序的回歸，有機增長和營業利潤率都會有所改善。

Lastly, second quarter organic growth for our Consumer business was down 5%. Organic sales growth within Consumer was led by our home care business, up high single digits, along with home improvement, which was up low single digits. Growth in these businesses was driven by strong customer demand for our Scotch-Brite cleaning products and solutions, Scotch Blue Painter's Tape, Filtrete air filtration products and Meguiar's car care products. Stationery and office and consumer health care both declined, impacted by the stay-at-home orders and social distancing protocols, which resulted in many offices and schools being closed across the world.

最後，我們的消費者業務第二季度的有機增長下降了 5%。消費者部門的有機銷售增長由我們的家庭護理業務引領，增長了個位數，而家居裝修業務則增長了個位數。客戶對我們的 Scotch-Brite 清潔產品和解決方案、Scotch Blue Painter's Tape、Filtrete 空氣過濾產品和美光汽車護理產品的強勁需求推動了這些業務的增長。受居家令和社交距離協議的影響，文具、辦公室和消費者醫療保健均有所下降，導致全球許多辦公室和學校關閉。

Looking at Consumer geographically, the Americas and Asia Pacific were each down mid-single digits, while EMEA declined 10%. Consumer's operating margins were 23.2%, up 250 basis points on strong cost discipline and ongoing productivity. That wraps up my review of the second quarter results.

從地理上看，美洲和亞太地區的消費者均下降了中個位數，而歐洲、中東和非洲地區下降了 10%。消費者的營業利潤率為 23.2%，由於嚴格的成本紀律和持續的生產力提高了 250 個基點。這結束了我對第二季度業績的回顧。

Before I turn it over to Monish, I'd like to take this opportunity to make a few comments, given it is my last earnings call. 35 years ago, I started my career at 3M right out of college. I'm humbled and grateful for the many opportunities and experiences I have had throughout my career. And most importantly, the many wonderful people that I have gotten to know, both professionally and personally, around the world. In the last 6 years, I've been blessed to be the CFO of this great company and to lead 3M's global finance organization. As part of my role as CFO, I have also had the opportunity to engage with many of you in the investor community.

在我把它交給莫尼什之前，我想藉此機會發表一些評論，因為這是我最後一次財報電話會議。 35 年前，我剛從大學畢業就在 3M 開始了我的職業生涯。對於我在整個職業生涯中獲得的許多機會和經歷，我感到謙卑和感激。最重要的是，我在世界各地認識了許多專業和個人的好人。在過去的 6 年中，我有幸成為這家偉大公司的首席財務官，並領導 3M 的全球財務部門。作為首席財務官的一部分，我也有機會與投資者社區中的許多人進行交流。

I have greatly enjoyed the many interactions with those of you who have covered and invested in 3M. I've appreciated your support, input and feedback and I wish you all the best in the future.

我非常享受與那些報導和投資 3M 的人的許多互動。感謝您的支持、意見和反饋，並祝您未來一切順利。

With that, please turn to Slide 13, and I will hand it over to Monish to discuss our thoughts going forward. Monish?

有了這個，請轉到幻燈片 13，我將把它交給 Monish 討論我們未來的想法。莫尼什？

Thank you, Nick, and good morning, everyone. First, I would like to recognize and thank Nick, not only for his 35 years of outstanding service to 3M, but also for his partnership, counsel and guidance over the past month in helping me learn 3M and ensure a smooth transition.

謝謝你，尼克，大家早上好。首先，我要感謝 Nick，不僅感謝他 35 年來為 3M 提供的出色服務，而且感謝他在過去一個月中的合作、建議和指導，幫助我學習 3M 並確保順利過渡。

Like Nick, I am humbled to be a part of this outstanding company. I have had great admiration of 3M and its vast scientific capabilities to positively impact the world, including and across industry, health care and consumers' lives. It's great to be a part of the leadership team and to lead the company's global finance organization.

像尼克一樣，我很榮幸成為這家傑出公司的一員。我非常欽佩 3M 及其對世界產生積極影響的巨大科學能力，包括跨行業、醫療保健和消費者生活。很高興成為領導團隊的一員並領導公司的全球財務組織。

Over the past month, I have spent time meeting with leadership, key finance members and also participated in strategic and operating reviews and discussions. While I've only been on the job for a few weeks, this past month has given me a great opportunity to personally engage with our leadership team and learn the company. I want to thank all 3Mers for their warm welcome.

在過去的一個月裡，我花時間與領導層、主要財務成員會面，還參與了戰略和運營審查和討論。雖然我只工作了幾個星期，但過去一個月給了我一個很好的機會親自與我們的領導團隊互動並了解公司。我要感謝所有 3Mers 的熱烈歡迎。

With that, let me make a few remarks regarding our thoughts on the coming quarter. As we start the third quarter, we are seeing sequential improvements in end markets, including automotive, health care and general industrial. While the strength and pace of recovery remains uncertain, we currently are expecting global economic activity to be stronger in Q3 as compared to 2Q.

有了這個，讓我就我們對下一季度的想法發表一些評論。從第三季度開始，我們看到終端市場的連續改善，包括汽車、醫療保健和一般工業。儘管復甦的力度和步伐仍不確定，但我們目前預計第三季度的全球經濟活動將比第二季度更強勁。

Turning to our business. We are seeing a broad-based pickup in growth across our businesses and geographies as we start the third quarter. With 1 week left in July, total company sales are currently up low single digits year-on-year. With respect to respirators, we anticipate continued strong demand, which we estimate will contribute approximately 300 to 350 basis points to company-wide Q3 organic growth.

轉向我們的業務。隨著我們第三季度的開始，我們看到我們的業務和地區的增長基礎廣泛。 7 月還剩 1 週，公司總銷售額目前同比增長低個位數。關於呼吸器，我們預計需求將持續強勁，我們估計這將為公司第三季度的有機增長貢獻約 300 至 350 個基點。

As we did throughout Q2, we will continue to provide monthly sales information. Therefore, we will provide an update on July sales once we have finalized results in a few weeks. From an operational standpoint, though we anticipate some pickup in cost as sales growth improves, we are maintaining our aggressive cost discipline, whilst also continuing to invest in future growth and productivity. Therefore, looking at margins, we currently anticipate our third quarter adjusted operating income margins in the range of 20% to 21%.

正如我們在整個第二季度所做的那樣，我們將繼續提供月度銷售信息。因此，一旦我們在幾週內最終確定結果，我們將提供 7 月銷售的更新。從運營的角度來看，儘管我們預計隨著銷售增長的改善，成本會有所回升，但我們將保持積極的成本紀律，同時繼續投資於未來的增長和生產力。因此，從利潤率來看，我們目前預計第三季度調整後的營業收入利潤率在 20% 至 21% 之間。

Finally, with respect to free cash flow, we will continue our efforts to drive improvements in working capital and prioritize CapEx spend. Our ongoing focus on cash flow, along with disciplined capital allocation, are central to enhancing our financial flexibility and strengthening our capital structure. While uncertainty remains, we are confident in our ability to continue to execute on our priorities, respond to changes in the marketplace and invest in future growth and productivity.

最後，關於自由現金流，我們將繼續努力推動營運資本的改善，並優先考慮資本支出。我們對現金流的持續關注以及嚴格的資本分配對於提高我們的財務靈活性和加強我們的資本結構至關重要。儘管不確定性依然存在，但我們有信心繼續執行我們的優先事項、應對市場變化並投資於未來的增長和生產力。

With that, I thank you for your attention, and we will now take your questions.

有了這個，我感謝您的關注，我們現在將回答您的問題。

(Operator Instructions) Our first question comes from the line of Scott Davis with Melius Research.

（操作員說明）我們的第一個問題來自 Scott Davis 與 Melius Research 的對話。

Congrats, Nick, on your retirement and enjoy. Well done. Manish, good luck to you.

恭喜尼克，你退休了，好好享受吧。做得好。馬尼什，祝你好運。

Thank you, Scott.

謝謝你，斯科特。

Thank you.

謝謝你。

Anyways, I -- 2 questions here. One, on the cost out, how much of the $400 million would you guys say is kind of permanent, you can hold on to, versus the more temporary fashion?

無論如何，我 - 這裡有 2 個問題。一，關於成本，你們會說4億美元中有多少是永久性的，你可以堅持下去，而不是更臨時的時尚？

Scott, I'd say the vast -- the majority of the $400 million is temporary, that much of what we were doing in second quarter was reducing expenses through disciplined holding down of expenses. There were some other things we did of restructuring actions that we think -- that we know will benefit us going forward. But the majority of this $400 million, we see as temporary spending reductions and not permanent spending reductions.

斯科特，我想說的是，4 億美元中的大部分是暫時的，我們在第二季度所做的大部分工作是通過嚴格控制開支來減少開支。我們認為，我們還對重組行動做了一些其他的事情——我們知道這將有利於我們前進。但是，這 4 億美元中的大部分，我們認為是暫時的支出減少，而不是永久性的支出減少。

Okay. And then as a follow-up, the July month-to-date, I mean, I know we're only -- we're not totally through the month yet, close. But that seems pretty positive based on the sequential -- I mean, I wouldn't have expected positive towards later in the year -- until later in the year. Is there -- can you give us a little bit of color on that? Is there any particular snapback or inventory rebuild or back discretionary health care has started up again, things like that, that perhaps is driving that growth?

好的。然後作為後續行動，7 月至今，我的意思是，我知道我們只是 - 我們還沒有完全度過這個月，結束了。但從順序來看，這似乎是相當積極的——我的意思是，我不會預計今年晚些時候會出現積極的情況——直到今年晚些時候。有沒有 - 你能給我們一點顏色嗎？是否有任何特別的回彈或庫存重建或可自由支配的醫療保健再次啟動，諸如此類的事情，也許正在推動這種增長？

Yes. Scott, maybe I'll characterize it a little, really in line with what Monish said in his remarks. It's pretty broad based across businesses and geographies. We are seeing positive growth in China coming out of Q2, and that continues. But it's really broad based. It is related to some of the things you highlighted. Elective procedures coming back. The automotive build rate sequentially getting better, still negative but getting better. So we're seeing it. I wouldn't say we're seeing the signs of a snapback in the inventory in the channel yet. But it's -- we're certainly early days benefiting from that broader improvement across -- really across businesses and geographies.

是的。斯科特，也許我會稍微描述一下，真的符合莫尼什在他的講話中所說的。它在企業和地區的基礎上非常廣泛。我們看到中國從第二季度開始出現正增長，而且這種情況還在繼續。但它的基礎非常廣泛。它與您強調的一些事情有關。選修程序回來了。汽車製造率連續好轉，仍為負數，但正在好轉。所以我們看到了。我不會說我們還沒有看到渠道庫存回升的跡象。但它——我們肯定在早期受益於這種更廣泛的改進——實際上是跨業務和跨地區的。

And our next question comes from the line of Julian Mitchell with Barclays.

我們的下一個問題來自巴克萊銀行的 Julian Mitchell。

And I'll echo the thanks to Nick, and welcome to Monish. Maybe just a question on the adjusted operating margin, first of all. So I saw the guidance of 20% to 21% for Q3. It is up slightly sequentially. But I guess year-on-year, it's still a very heavy decline, maybe heavier even than what you had seen in Q2 even with a better revenue trajectory. So I just wanted to try and understand if that's right, there's maybe a 3-point decline in the adjusted margin year-on-year. And maybe what's driving that to offset the better volume performance?

我會回應對尼克的感謝，歡迎來到莫尼什。首先，也許只是關於調整後的營業利潤率的問題。所以我看到了第三季度 20% 到 21% 的指導。依次小幅上漲。但我想與去年同期相比，它仍然是一個非常嚴重的下降，即使收入軌跡更好，甚至可能比你在第二季度看到的還要嚴重。因此，我只是想嘗試了解這是否正確，調整後的利潤率可能同比下降 3 個百分點。也許是什麼驅使它抵消了更好的音量性能？

Julian, yes, with the guide that we're putting out for third quarter margin, 20% to 21%. We've been looking at it from a sequential perspective and seeing it up 50 to 100 basis points over where we finished Q2 of this year. Now as you're doing and looking at last year, you got to remember, last year had some one-off things benefiting that. We had a gain on the sale of a building that's included in that. We also have the impact of Acelity. Year-on-year with Acelity, not in our third quarter results last year, but they're now in there. Those are the 2 biggest things impacting the year-on-year number.

朱利安，是的，根據我們發布的第三季度利潤率指南，20% 到 21%。我們一直從連續的角度看待它，發現它比今年第二季度結束時高出 50 到 100 個基點。現在，當您正在做和查看去年時，您必須記住，去年有一些一次性的事情使這一點受益。我們在出售其中包含的建築物時獲得了收益。我們也受到 Acelity 的影響。與 Acelity 相比，不是在我們去年的第三季度業績中，但他們現在在那裡。這些是影響同比數字的兩個最大因素。

That's helpful. And then maybe my second question, if we look at the Health Care business, specifically, I know the comments around improving margins in the prepared remarks. Maybe just put a finer point on it, I suppose, in Health Care. Help us understand the pace at which the elective surgery-related businesses are coming back. And did the comment mean that margins could grow even in the second half? Or is more just a much narrower decline than what you've seen in Q2?

這很有幫助。然後也許是我的第二個問題，如果我們看一下醫療保健業務，具體來說，我知道在準備好的評論中關於提高利潤率的評論。我想，也許只是在醫療保健方面做得更好。幫助我們了解擇期手術相關業務的回歸速度。評論是否意味著利潤率甚至在下半年也會增長？還是只是比您在第二季度看到的下降幅度要小得多？

Yes. Julian, I won't take the comments to say that we expect the margins to be up year-on-year in our Health Care business. My comments there were in regards to compared to where we saw margins in the second quarter, we anticipate those continuing to expand as we see elective procedures coming back and our own volumes going up. And if I use oral care as an example, each month of the second quarter, we were seeing improvement in our year-on-year growth rates in that. And we expect some -- that to continue going forward. We're also seeing improvements on the month in our Medical Solutions business. So we are seeing signs that these elective procedures are coming back, and we're seeing the start of that later in the second quarter, early into the third quarter. And as that continues, we expect that to have a positive impact on the sequential operating margins for Health Care.

是的。朱利安，我不會接受評論說我們預計我們的醫療保健業務的利潤率會同比上升。我的評論是與我們在第二季度看到的利潤率相比，我們預計隨著我們看到選擇性程序的回歸和我們自己的銷量增加，這些會繼續擴大。如果我以口腔護理為例，第二季度的每個月，我們都看到我們的同比增長率有所改善。我們期待一些 - 繼續前進。我們還看到我們的醫療解決方案業務在本月有所改善。因此，我們看到這些選擇性程序正在回歸的跡象，我們看到第二季度晚些時候，第三季度初開始。隨著這種情況的繼續，我們預計這將對醫療保健的連續營業利潤率產生積極影響。

And our next question is from the line of Andrew Obin, Bank of America.

我們的下一個問題來自美國銀行的 Andrew Obin。

Just a question. As things improve for you guys, what do you need to see? What are the goalposts? Oh, I apologize. Before I go into my question, I do want to thank Nick, and welcome, Monish. I apologize for skipping that. Nick, good luck and thank you. And Monish, welcome. Apologies for that. So just going back to capital allocation. What do you need to see in terms of things getting back to normal? To go back to share buybacks, to go back to looking at M&A, what does it take? What do they goalposts?

就一個問題。隨著你們的情況有所改善，你們需要看到什麼？什麼是球門柱？哦，我道歉。在我提出問題之前，我要感謝尼克，歡迎莫尼什。我很抱歉跳過那個。尼克，祝你好運，謝謝。還有莫尼什，歡迎。對此表示歉意。所以回到資本配置。在恢復正常方面，您需要看到什麼？回到股票回購，回到併購，需要什麼？他們的球門柱是什麼？

Thanks for the question. The way we look at it is, we have said before, it's an extremely uncertain environment. So for us to look at the, what you call stability, we'll have to figure out what our end markets look like. When you think about a big end market, whether it's health care, automotive, and personal safety. So until we see that stability, it's just going to be really hard for us. So I would call those as the goalpost. And of course, how the coronavirus cases play out in the world will be other big factor in this and how the economy start opening up. So those are just some of the macro indicators that we'll have to look at before we feel comfortable. And that's why we're taking this day by day and we're going to continue providing you monthly guidance on revenue. And then as that stabilizes, I think we'll be in a better position to have a stronger view on capital allocation.

謝謝你的問題。我們看待它的方式是，我們之前說過，這是一個極其不確定的環境。因此，對於我們來說，你所說的穩定性，我們必須弄清楚我們的終端市場是什麼樣的。當您考慮一個大型終端市場時，無論是醫療保健、汽車和人身安全。所以在我們看到這種穩定性之前，這對我們來說真的很難。所以我會把這些稱為球門柱。當然，冠狀病毒病例在世界範圍內的發展方式將是其中的另一個重要因素，也是經濟如何開始開放的另一個重要因素。因此，這些只是我們在感到舒服之前必須查看的一些宏觀指標。這就是為什麼我們每天都在處理這一點，我們將繼續為您提供每月的收入指導。然後隨著這種情況穩定下來，我認為我們將能夠更好地對資本配置有更強烈的看法。

So when you stop providing monthly guidance, I should expect buybacks? Sorry, that was a joke. And another question. You guys have some of the strongest presence in China of anybody we cover. And we've been reading about possible supply chain disruptions related to sort of Yangtze River flooding. Are you seeing any impact on your customers in China? I mean, I know where you guys are. But are you seeing any impact from flooding on your supply chain? Or are you making any contingency plans? Just trying to figure out how real that thing is.

所以當你停止提供每月指導時，我應該期待回購嗎？對不起，那是個玩笑。還有一個問題。在我們報導的任何人中，你們在中國的影響力最強。我們一直在閱讀有關可能與長江洪水有關的供應鏈中斷的信息。您是否看到對您在中國的客戶的影響？我的意思是，我知道你們在哪裡。但是，您是否看到洪水對您的供應鏈有任何影響？或者您是否正在製定任何應急計劃？只是想弄清楚那東西有多真實。

Yes. And Andrew, through the entire COVID experience, we really have validated the model that we've had around the world. And as you know, we manufacture in China a majority of what we sell in China. So we really are closely connected with the supply chains there. I would say, at this point, we don't see an impact from the flooding. I mean, we're watching it closely. We're staying connected to our customers as they see interruptions as if it worsens or their businesses are interrupted, we will. We will certainly adjust in the supply chain, but at this point we don't see a material impact on the China results. We're seeing fairly broad-based improvements really across electronics and industrial and transportation markets leading the way. Like the U.S., the elective procedures in health care are a little slower to recover, but it's fairly broad-based in that growth that we saw in Q2. So not at this time, but we'll stay close to it and update as we go.

是的。安德魯，通過整個 COVID 體驗，我們確實驗證了我們在世界各地擁有的模型。如您所知，我們在中國生產的大部分產品在中國銷售。因此，我們確實與那裡的供應鏈緊密相連。我想說，在這一點上，我們沒有看到洪水的影響。我的意思是，我們正在密切關注它。我們會與客戶保持聯繫，因為他們會看到中斷，好像情況會惡化或他們的業務被中斷，我們會的。我們肯定會在供應鏈上進行調整，但目前我們認為不會對中國的業績產生重大影響。我們在電子、工業和運輸市場中看到了相當廣泛的改進，引領潮流。與美國一樣，醫療保健的選擇性程序恢復速度稍慢，但在我們在第二季度看到的增長中，它的基礎相當廣泛。所以不是現在，但我們會密切關注它並隨時更新。

And our next question is from the line of Steve Tusa with JPMorgan.

我們的下一個問題來自摩根大通的史蒂夫圖薩。

Can you just discuss where you stand on some of the cost actions for second half? I know you said you've got $400 million out in second quarter, but maybe just discuss what you're getting in second half. And then how that temporary versus structural kind of plays into next year, just assuming flat sales, for example, even though they probably won't be flat. Just what you see kind of as temporary and structural now, just an update there.

你能談談你對下半年的一些成本行動的立場嗎？我知道你說你在第二季度有 4 億美元，但也許只是討論你在下半年得到了什麼。然後，假設銷售持平，例如，即使它們可能不會持平，這種臨時性與結構性的關係如何在明年發揮作用。你現在看到的只是暫時的和結構性的，只是那裡的更新。

Sure, Steve. So as Nick mentioned in his prepared remarks and the prior question, most of the actions that were taken in the second quarter were temporary in nature. We have taken some structural actions through a restructuring charge but -- as most of them were temporary in nature. I would say we're going to continue our strong cost discipline that we're doing. But at the same time, as the economic recovery starts coming back up, we are going to see investments in both growth and productivity as well as some of the timing items in 2Q will play back out in Q3 and Q4. So that's our current view right now. And as I said, uncertain environment, but depending on which way the world plays out, we are ready to act whether in both investing in growth and productivity at the same time.

當然，史蒂夫。所以正如尼克在他準備好的評論和前面的問題中提到的那樣，第二季度採取的大部分行動都是暫時的。我們已經通過重組費用採取了一些結構性行動，但是因為其中大多數是臨時性的。我想說我們將繼續我們正在做的強有力的成本紀律。但與此同時，隨著經濟復甦開始復蘇，我們將看到對增長和生產力的投資，以及第二季度的一些時機項目將在第三季度和第四季度發揮作用。這就是我們現在的看法。正如我所說，不確定的環境，但取決於世界的發展方式，我們準備採取行動，是否同時投資於增長和生產力。

So I guess that sounds like for -- I guess, that sounds just pretty -- performance next year will be pretty consistent to kind of normal incremental margins on growth with maybe just the 2Q temporary actions as kind of the key item to call out.

所以我猜這聽起來像是——我猜，這聽起來很漂亮——明年的表現將與正常的增長利潤率相當一致，也許只是第二季度的臨時行動是需要關注的關鍵項目。

So as of right now, I would say that, Steve. But again, as I said, let's see how the world plays out and we'll act both on growth and productivity as required. But for Q3, again, looking at the cost actions, just to reiterate, we are looking at -- as sequential revenue goes up, margin rate is going to go up to 20% to 21%, which is 50 to 150 bps better than Q2.

所以到目前為止，我會這麼說，史蒂夫。但是，正如我所說，讓我們看看世界如何發展，我們將根據需要對增長和生產力採取行動。但對於第三季度，再次關注成本行動，重申一下，我們正在關注——隨著連續收入的增長，保證金率將上升至 20% 至 21%，比 50 至 150 個基點好Q2。

Our next question is from the line of Nigel Coe, Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Nigel Coe。

Nick, good luck, and Monish, good luck with your new role as well. I just wanted to just to touch quickly on July versus June. I mean, I wasn't on the whole prepared remarks, but what caused the big snap in -- it looks like mid-ish teens declines in June on a daily basis and then strapping into positive growth in July. And is that positive growth, is that inclusive of acquisitions? Or was that purely organic? Just wondering what changed between the 2 months.

尼克，祝你好運，莫尼什，也祝你的新角色好運。我只是想在 7 月與 6 月快速接觸。我的意思是，我並沒有完全準備好評論，但是是什麼導致了大爆發——看起來中等青少年在 6 月份每天都在下降，然後在 7 月份開始出現正增長。那是正增長嗎，包括收購嗎？還是那純粹是有機的？只是想知道這兩個月之間發生了什麼變化。

Yes. So the growth was all in sales, Nigel. So it's both acquisitions and organic. We are -- I would say we're -- that broad-based view of businesses and geographies. It's adding up everywhere a little bit. That's what's making the difference. And we're seeing that -- we're seeing demand come back. There's a lot of, I think, a lot of optimism that we were seeing economic recovery at the end of second quarter. And we saw pretty consistent organic growth across the months in the quarter. We're seeing it come through now in July. So it's just -- I would say the timing of it and that broad-based across businesses and geographies is adding up to improving trends. I'm encouraged by what I see. It's still early days in the third quarter, but we're off to a good start, and I think it's a start of a trend in those markets is the cause of it.

是的。所以增長全部來自銷售，奈傑爾。所以它既是收購又是有機的。我們是——我會說我們是——對企業和地域的廣泛看法。它到處都加起來一點點。這就是與眾不同的地方。我們看到了——我們看到需求回來了。我認為，很多人對我們在第二季度末看到經濟復甦感到非常樂觀。我們在本季度的幾個月中看到了相當一致的有機增長。我們現在看到它在 7 月實現。所以它只是 - 我會說它的時機以及跨業務和地域的廣泛基礎正在增加趨勢的改善。我對我所看到的感到鼓舞。第三季度仍處於初期階段，但我們有了一個良好的開端，我認為這是這些市場趨勢的開端。

Yes. I'd be curious if there's any channel impact that's causing that. But my follow-on question is really on Health Care margins. And we saw -- I mean, I think the best way to think about this is on an EBITDA basis, and we saw sequentially EBITDA margins declining from 20% down to 24.1%. And I mean, obviously, volume took a big step down in 1Q versus 2Q. So is that just purely a volume impact that we're seeing there? Or are there some mix impacts that we need to figure in as well?

是的。我很好奇是否有任何渠道影響導致了這種情況。但我的後續問題實際上是關於醫療保健的利潤。我們看到 - 我的意思是，我認為考慮這個問題的最佳方法是基於 EBITDA，我們看到 EBITDA 利潤率從 20% 下降到 24.1%。我的意思是，顯然，第一季度的交易量與第二季度相比大幅下降。那麼這僅僅是我們在那裡看到的純粹的體積影響嗎？還是我們還需要考慮一些混合影響？

Nigel, before I give it to Nick, maybe just a comment about the channel at the end there. We did see some strong point-of-sale as we came through second quarter. So there was expectation that sell-in would follow. That's probably contributing some of it, but we aren't seeing a big, as I said earlier, a big snap back in the channel, but there is -- has been stronger point of sale, so that's also contributing.

奈傑爾，在我把它給尼克之前，也許只是對最後頻道的評論。當我們進入第二季度時，我們確實看到了一些強大的銷售點。因此，人們預計會出現拋售。這可能是其中的一部分，但正如我之前所說，我們並沒有看到渠道中有很大的反彈，但是有 - 更強大的銷售點，所以這也是有貢獻的。

And Nigel, to your question on the EBITDA margins for health care. And yes, we're seeing that down and your presumption is correct. What we are seeing there is almost all volume related when we look at it on an EBITDA basis because then we're pulling out the impact of the Acelity purchase accounting impact. It's almost all volume related. And then, again, as we see volumes coming back up, we expect that to abate and come back to more normal operating margins for our Health Care business.

還有奈傑爾，關於您關於醫療保健 EBITDA 利潤率的問題。是的，我們看到了這一點，你的假設是正確的。當我們在 EBITDA 的基礎上查看它時，我們所看到的幾乎所有數量都相關，因為那時我們正在消除 Acelity 採購會計影響的影響。這幾乎與音量有關。然後，再次，隨著我們看到銷量回升，我們預計這種情況會減弱並恢復到我們的醫療保健業務更正常的營業利潤率。

Our next question is from the line of John Walsh, Crédit Suisse.

我們的下一個問題來自瑞士信貸的 John Walsh。

Thank you to Nick, and welcome to Monish.

謝謝尼克，歡迎來到莫尼什。

Thank you, John.

謝謝你，約翰。

Wanted to go back to the Q3 margin guidance. I was trying to calculate the year-on-year decline if I make adjustments for the flame detection gain last year, the property gain, which you kind of sized in the prepared remarks last year, and it seems like the year-on-year delta actually gets worse in Q3 versus Q2. So I wanted to know, one, if that math was right and if -- or if we missed something there.

想要回到第三季度的利潤率指導。如果我對去年的火焰探測增益、財產增益進行調整，我試圖計算同比下降，你在去年準備好的評論中對它進行了調整，看起來像同比下降與 Q2 相比，Q3 的 delta 實際上變得更糟。所以我想知道，一個，如果那個數學是正確的，如果 - 或者我們是否錯過了一些東西。

So the way I look at it, John, I think the reason we went to incremental quarter-over-quarter sequential is because it's so hard to do the math year-on-year. There were some gains last time as well as we've got the impact of the Acelity acquisition this year. And that's why I would just request that focus on the sequential, and that's where we are showing margin improvement of 50 to 150 basis points as we go forward as volume starts getting better.

所以我看待它的方式，約翰，我認為我們採用逐季遞增的原因是因為逐年進行數學計算非常困難。上次有一些收益，今年我們也受到了收購 Acelity 的影響。這就是為什麼我只要求將重點放在順序上，這就是我們顯示利潤率提高 50 到 150 個基點的地方，因為我們隨著交易量開始變得更好。

Okay. And then maybe just a follow-up, thinking about price raws for the back half year, price ticked up. I was just curious where you're actually seeing an acceleration in getting price maybe by the segment units because we already have it by the geography.

好的。然後可能只是後續行動，考慮到後半年的原始價格，價格上漲了。我只是好奇您實際上在哪裡看到了細分單位的價格加速，因為我們已經按地理位置獲得了它。

Yes. So we're at 50 basis points of price growth in the second quarter. And we don't foresee that having a material change in the second half of the year. What we've been experiencing for price growth both for the first and the second quarter, we think, is a pretty indicative of where we'll be for the total year. So John, there's really not any big trend change going on there that -- to highlight. It's been a very stable number, and we think it will remain stable.

是的。因此，我們在第二季度的價格增長了 50 個基點。而且我們預計下半年不會發生重大變化。我們認為，我們在第一季度和第二季度所經歷的價格增長很好地表明了我們全年的狀況。所以約翰，那裡真的沒有任何大的趨勢變化——要強調。這是一個非常穩定的數字，我們認為它將保持穩定。

And the next question is from Joe Ritchie, Goldman Sachs.

下一個問題來自高盛的喬·里奇。

And I will echo all the comments. We'll miss Nick, and we look forward to working with you, Monish.

我會回應所有的評論。我們會想念尼克，我們期待與您合作，莫尼什。

Same here, Joe.

在這裡也一樣，喬。

So maybe just my first question, maybe following up on Nigel's question on health care margins. So if we were to take out the Acelity acquisition from 2Q, what were the core decrementals in 2Q in Health Care?

所以也許只是我的第一個問題，也許是跟進奈傑爾關於醫療保健利潤率的問題。那麼，如果我們要從第二季度中剔除對 Acelity 的收購，那麼第二季度醫療保健領域的核心遞減是什麼？

Yes. Joe, the core decrementals in Health Care, once I pull out Acelity, then we're in 60% or a little higher than 60%, which is not unusual given the makeup of our cost structure in Health Care. So once I pull out Acelity, that's -- then we're in that range.

是的。 Joe，醫療保健的核心遞減，一旦我退出 Acelity，我們就會達到 60% 或略高於 60%，考慮到我們醫療保健成本結構的構成，這並不罕見。所以一旦我拿出 Acelity，那就是 - 然後我們就在那個範圍內。

That's helpful. And then just, Nick, just following up on a comment you made earlier. So none of that is mix related, like the elective procedures isn't exacerbating that decremental. It's just basically volume oriented, and that's it?

這很有幫助。然後，尼克，只是跟進你之前發表的評論。因此，這些都與混合無關，例如選修程序並沒有加劇這種遞減。它基本上是面向體積的，就這樣嗎？

Yes. When we look at a mix impact, we have pluses and minuses. It really nets out to very little change on our overall Health Care margin.

是的。當我們查看混合影響時，我們有優點和缺點。它確實對我們的整體醫療保健利潤率幾乎沒有變化。

Okay. All right. And then maybe one follow-on question. Just going back to the comments around capital deployment and when you could potentially get more aggressive with a buyback or M&A. The question I have is like, how are you thinking about your balance sheet and your leverage going forward? There are a lot of moving pieces, clearly, from a PFAS perspective. And so I'm just wondering whether you're thinking about your leverage in a different way when we start thinking about you getting a little bit more aggressive in the future.

好的。好的。然後可能是一個後續問題。回到關於資本部署的評論，以及當你可能通過回購或併購變得更加積極時。我的問題是，您如何看待您的資產負債表和您的槓桿率？顯然，從 PFAS 的角度來看，有很多動人的部分。所以我只是想知道當我們開始考慮你在未來變得更加激進時，你是否正在以不同的方式考慮你的槓桿作用。

Sure. So I would just start by saying the hallmark of 3M has been its strong capital structure, and our plan is to continue doing that. Deleveraging has been a priority for 3M, and we're going to continue that journey. I think the pace of deleveraging will depend on how economic activity recovers. And also our ability to continue driving strong cash flow and control our working capital. So that's what I would just say for the time being is our current view. And to reiterate capital allocation, our first priority has always been to invest in the business. It's R&D, organic growth, best return right there. Dividend is our second, which has been a big hallmark of 3M. That's our second priority. And then M&A is third, and then share buyback would be our last priority. So that's the way we are looking at it right now.

當然。所以我首先要說 3M 的標誌是其強大的資本結構，我們的計劃是繼續這樣做。去槓桿一直是 3M 的首要任務，我們將繼續這一旅程。我認為去槓桿化的步伐將取決於經濟活動如何復蘇。還有我們繼續推動強勁現金流和控制營運資金的能力。所以這就是我暫時要說的是我們目前的觀點。重申資本配置，我們的首要任務始終是投資業務。這是研發，有機增長，最好的回報。股息是我們的第二個，這一直是 3M 的一大標誌。這是我們的第二要務。然後併購是第三，然後股票回購將是我們的最後一個優先事項。這就是我們現在看待它的方式。

Next question is from the line of Jeff Sprague, Vertical Research Partners.

下一個問題來自垂直研究合作夥伴 Jeff Sprague。

Nick, 35 years, you look so young. I thought maybe you started out of middle school, but best of luck to you.

尼克，35 歲，你看起來很年輕。我想也許你從中學開始，但祝你好運。

Jeff, you're kind. Thank you.

傑夫，你很善良。謝謝你。

Yes. Just 2 business-related questions for me, if I could. First, on electronics, can you just provide a little more color on what you saw there? It sounds like kind of a tale of 2 markets, right, consumer electronic versus the other buckets. If you can give a little more color on what you saw in the quarter in those pieces and what the trajectory looks like into the third quarter?

是的。如果可以的話，對我來說只有 2 個與業務相關的問題。首先，在電子產品上，您能否為您在那裡看到的內容提供更多顏色？這聽起來像是兩個市場的故事，對，消費電子與其他市場。如果您可以對您在本季度中看到的這些部分以及第三季度的軌跡是什麼樣的提供更多顏色？

Yes. Jeff, electronics for us was down 1%. And as you said, it was kind of a mix of different stories. There was strength in semiconductor data centers, factory automation. Those were all up double digits for us. Those have been part of our focus on where we invest for growth in electronics. It was offset by softness in consumer electronics. The broader transportation electronics was impacted more heavily by automotive, and I would say, our commercial solution business. But in electronics, the strength were in those categories. We see those trends continuing. Semiconductor fabrication continues robust growth. Consumer electronics still soft as we start third quarter. But the benefit of being in those higher growth segments has -- gave us some strength in electronics in the quarter.

是的。傑夫，我們的電子產品下降了 1%。正如你所說，這是一種不同故事的混合。半導體數據中心、工廠自動化方面有實力。這些對我們來說都是兩位數。這些一直是我們關注電子產品增長投資領域的一部分。它被消費電子產品的疲軟所抵消。更廣泛的運輸電子產品受到汽車的影響更大，我想說的是，我們的商業解決方案業務。但在電子領域，優勢在於這些類別。我們看到這些趨勢仍在繼續。半導體製造繼續強勁增長。從第三季度開始，消費電子產品仍然疲軟。但是，進入那些增長較高的領域的好處是——給了我們本季度電子產品的一些實力。

Then secondly, unrelated, on the consumer side, obviously potentially a very peculiar back-to-school or maybe we don't even have back-to-school this year. What is going on in retail in terms of planning for this channel fill, that sort of thing? And what are you expecting in the third quarter?

其次，不相關的，在消費者方面，顯然可能是一個非常特殊的返校，或者我們今年甚至沒有返校。在規劃這種渠道填充方面，零售業正在發生什麼，諸如此類的事情？您對第三季度有何期待？

Well, our retail partners are planning for back-to-school. And as you said, there's a lot of uncertainty around it. It's another one of those things. That's almost day by day. We are -- we built a little bit of inventory even as we went through the first half in anticipation of back-to-school where we see that being something that is going to add to some of the growth as we move forward. But it's a lot of uncertainty around how it's going to play out. The strength in consumer for us has been around home improvement and our cleaning products. Stationery office had been declining as schools were closed, of course. We're hoping to see an uptick in demand as schools open, but that still remains to be seen.

好吧，我們的零售合作夥伴正在計劃返校。正如你所說，圍繞它有很多不確定性。這是另一件事。這幾乎是一天一天。我們是 - 即使我們在上半年經歷了回到學校的預期，我們也建立了一些庫存，我們認為這將在我們前進的過程中增加一些增長。但它會如何發揮作用存在很多不確定性。對我們來說，消費者的優勢在於家居裝修和我們的清潔產品。當然，隨著學校關閉，文具辦公室一直在減少。隨著學校的開放，我們希望看到需求增加，但這仍有待觀察。

And our next question is from the line of Deane Dray, RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場的 Deane Dray。

And echo best of luck to Nick, and welcome to Manish.

祝尼克好運，歡迎來到馬尼什。

Thanks, Deane.

謝謝，迪恩。

I'm not surprised that air quality is one of the priorities for 3M. You've got such a big presence on the residential side with Filtrete. Where and how do you see opportunities on the commercial building side on filtration as people start venturing back to work? Are there new products that you're expecting to launch?

空氣質量是 3M 的首要任務之一，我並不感到驚訝。 Filtrete 在住宅方面擁有如此巨大的影響力。隨著人們開始冒險重返工作崗位，您在哪里以及如何看待商業建築方面的過濾機會？是否有您期待推出的新產品？

Yes, Deane, you hit it. Our innovation in our -- really the core of what we do in filtrate has been focused on residential, both indoor air quality, and I would say, residential HVAC together with room air purifiers being part of that. And our innovation goes into the Filtrete filters that are part of that. The commercial side is, while we contribute some of our nonwoven technologies, it's not a big part of our air quality growth. It's one of those areas that -- it's still nascent in how the innovation is going to make a difference there. We work in our innovation on opportunities there. But when we talk about the outlook for the strength in this area and the growth that we're seeing in our priority growth platform. It's really in that residential side of the marketplace.

是的，迪恩，你成功了。我們在過濾方面的創新——實際上是我們在過濾方面所做的核心工作，一直專注於住宅，包括室內空氣質量，我想說的是住宅暖通空調和室內空氣淨化器是其中的一部分。我們的創新體現在作為其中一部分的 Filtrete 過濾器中。商業方面是，雖然我們貢獻了一些無紡布技術，但這並不是我們空氣質量增長的重要組成部分。這是那些領域之一——在創新如何在那裡產生影響方面仍處於萌芽狀態。我們致力於在那裡尋找機會的創新。但是，當我們談論該領域的實力前景以及我們在優先增長平台中看到的增長時。它真的在市場的住宅區。

Got it. And then for 2020, how does new product introductions shape up? Again, this is a strange year. But in terms of product launches and contributions?

知道了。那麼對於 2020 年，新產品的推出情況如何？再次，這是一個奇怪的一年。但是在產品發布和貢獻方面呢？

Yes. It's still -- the heart of 3M is our innovation, it comes through in those new product launches. We highlighted a little bit the benefit we're seeing in these priority growth platform, but it's much broader than that. We continue to launch new products. And like everything else, we're adjusting in the middle of COVID, prioritizing where we see market opportunities. And I would say, in some cases, you see in our CapEx delaying some of the investments as we see slowness in markets. Now we have plans for robust new product launches in the second half of the year. It's going to be still a critical part of our growth driver. So it's -- it doesn't change. We just have to adjust to the market opportunities. And I would say to the pace of investment as we go through the rest of the year.

是的。它仍然是——3M 的核心是我們的創新，它體現在那些新產品的發布中。我們強調了我們在這些優先增長平台中看到的好處，但它的範圍遠不止於此。我們繼續推出新產品。和其他一切一樣，我們正在 COVID 中進行調整，優先考慮我們看到的市場機會。我想說，在某些情況下，您會看到我們的資本支出推遲了一些投資，因為我們看到市場放緩。現在我們計劃在下半年推出強勁的新產品。它仍將是我們增長動力的關鍵部分。所以它 - 它沒有改變。我們只需要適應市場機會。我想說的是我們在今年剩餘時間裡的投資步伐。

And next question is from the line of Andy Kaplowitz, Citigroup.

下一個問題來自花旗集團的 Andy Kaplowitz。

Nick, thanks for all your help. Much appreciated. Monish, welcome.

尼克，謝謝你的幫助。非常感激。莫尼什，歡迎。

Thank you.

謝謝你。

Thanks, Andy.

謝謝，安迪。

So just focusing on Safety and Industrial for a second. The margin performance in the quarter was strong. Can you give us a little more color in terms of what led to the margin improvement in the quarter. Is the big increase in mask sales actually helping mix? Is it realignment that's now helping that segment? And would you expect to see this kind of performance we saw on Safety and Industrial moving forward?

所以只關注安全和工業一秒鐘。本季度的利潤率表現強勁。您能否就導致本季度利潤率提高的原因給我們更多的色彩。口罩銷量的大幅增長真的有助於混合嗎？現在是幫助該細分市場的重新調整嗎？您是否希望看到我們在安全和工業方面看到的這種表現？

Yes, Andy. In total, the fact that our revenue was down year-on-year, we're not seeing a benefit margin in our Safety and Industrial business from the combination of the higher respirator sales in the lower sales and the rest. That -- those we look pretty much as a push to us. So the 180 basis point margin expansion, some of that's coming from that $400 million of cost actions that we're doing that Safety and Industrial had its share of that. But we -- this was also a business where we were taking actions last year in restructuring. So we're -- the lack of repeat of that expense, plus the positive benefit of that restructuring, all of those things in combination led to that 180 basis point margin expansion. It's really not a mix or a respirator story. And then going forward, we do see continued margin expansion potential in this business going forward. Possibly not on the same scale as what we saw here in regards to the margin guidance that we provided. But it's still a business where we see upside on the margin on a year-on-year basis.

是的，安迪。總的來說，我們的收入同比下降的事實，我們沒有看到我們的安全和工業業務從較高的呼吸器銷售額與較低的銷售額和其餘部分的結合中獲得收益。那 - 我們看起來幾乎是對我們的推動。因此，180 個基點的利潤率擴張，其中一些來自我們正在採取的 4 億美元的成本行動，而安全和工業部門在其中佔有一席之地。但是我們 - 這也是我們去年在重組中採取行動的業務。所以我們 - 沒有重複該費用，加上重組的積極利益，所有這些因素結合在一起導致了 180 個基點的利潤率擴張。這真的不是一個混合或呼吸器的故事。然後展望未來，我們確實看到該業務未來的利潤率持續增長潛力。就我們提供的保證金指導而言，可能與我們在此處看到的規模不同。但這仍然是一項我們認為利潤率同比上升的業務。

And then just focusing geographically again. China seems to be continuing to improve, but Japan looked worse and Latin America looked expectedly weak. So can you talk about Asia and some of the other emerging markets? It seems like China continues with more of a V-shaped recovery for you guys. Is that what you're seeing? And then why did Japan turn down in Q2?

然後再次關注地理。中國似乎在繼續改善，但日本看起來更糟，拉丁美洲看起來很弱。那麼您能談談亞洲和其他一些新興市場嗎？對你們來說，中國似乎繼續呈現出更多的 V 型複蘇。這就是你所看到的嗎？那麼為什麼日本在第二季度拒絕了呢？

Yes. And Andy, we are seeing that recovery in China. And as I highlighted earlier, it's really across Safety and Industrial, Transportation and Electronics, leading kind of the improvements there as we move ahead. Health Care is still slow as elective surgeries, even -- or elective procedures come back in China as well. So we are -- we see that, as I highlighted, continuing as we start the third quarter. Japan was down 12% in the quarter, really seeing declines in safety, industrial and consumer, transportation, electronics as well. So it's a broad-based slowness there. I think we're seeing that across geographies that there's kind of a sequence to things that -- you've seen the earlier recovery in China, then you see EMEA, Americas and Japan, other parts of Asia, kind of going through kind of a step behind that, and we saw some of that in Japan as we went through the second quarter.

是的。 Andy，我們看到了中國的複蘇。正如我之前強調的那樣，它確實跨越了安全和工業、運輸和電子領域，在我們前進的過程中引領了那裡的改進。隨著擇期手術甚至——或者擇期手術在中國的回歸，醫療保健仍然緩慢。所以我們 - 正如我強調的那樣，我們看到這一點在我們開始第三季度時繼續。日本在本季度下降了 12%，安全、工業和消費、交通、電子等領域也確實出現了下滑。所以這是一個基礎廣泛的緩慢。我認為我們在各個地區都看到，事情有一個順序——你已經看到中國較早的複蘇，然後你看到歐洲、中東和非洲、美洲和日本，亞洲其他地區，有點經歷落後了一步，當我們經歷第二季度時，我們在日本看到了一些。

And the last question is from Marcus Mittermaier, UBS.

最後一個問題來自瑞銀的 Marcus Mittermaier。

And again, welcome, Monish. Thanks, Nick, for all your help and all the best.

再次，歡迎，莫尼什。謝謝尼克，謝謝你的幫助，一切順利。

Thanks, Marcus.

謝謝，馬庫斯。

Yes. If I can maybe come back to just the monthly data. Sorry for that. Mike, Nick, when we spoke intra-quarter, we talked about the sort of billing day adjustments that we would have to make in May and June. And if I do that arithmetic, I actually see June down significantly more than May was, which surprised me a bit. And then correct me if I'm wrong, but did you say July, the low single-digit number, was that all-in? Or was that organic? Maybe let's start here.

是的。如果我能回到每月的數據。對此感到抱歉。邁克、尼克，當我們在季度內發言時，我們談到了我們必須在 5 月和 6 月進行的那種賬單日調整。如果我做那個算術，我實際上看到 6 月份的下降幅度比 5 月份要大得多，這讓我有點吃驚。如果我錯了，請糾正我，但你是說七月，低個位數的數字，是全押嗎？還是那是有機的？也許讓我們從這裡開始。

Yes. When we look at on a per billing day sales, from April to May to June, we saw an improvement each of those months. However, that's a normal pattern for us. It's a normal pattern as we go through the second quarter that May and June sales per billing day goes up. And we saw that again this year. So in a year-on-year growth comparison, what we saw on a per billing day was very comparable about the same growth on a sales per billing day in May as what we saw in June. What we're seeing now in July is now a more noticeable direction change, where on a sales per billing day and on an absolute basis, we are seeing it up low single digits versus where we were in July of last year.

是的。當我們查看從 4 月到 5 月到 6 月的每個計費日銷售額時，我們看到每個月都有所改善。然而，這對我們來說是一種正常的模式。當我們進入第二季度時，每個結算日的 5 月和 6 月銷售額上升是一種正常模式。今年我們再次看到了這一點。因此，在同比增長比較中，我們在每個計費日看到的情況與 5 月每個計費日的銷售額增長非常相似，與我們在 6 月看到的情況非常相似。我們現在在 7 月份看到的是一個更明顯的方向變化，在每個結算日的銷售額和絕對基礎上，我們看到它比去年 7 月的水平低個位數。

Okay. Maybe I'll come back to that after the call just to make sure. And then on the interim content order that you mentioned with ADM on the -- in your prepared remarks, is that something that you have already provisioned for before? Because in the special items, if I look at it, there were no sort of litigation-related charges in the quarter. Is that something that's still coming up? Or is that something that was already provisioned for in the past?

好的。也許我會在電話會議後回到那個問題上來確定一下。然後關於您與 ADM 提到的臨時內容訂單 - 在您準備好的評論中，這是您之前已經準備好的東西嗎？因為在特殊項目中，如果我看一下，本季度沒有與訴訟相關的費用。那件事還在發生嗎？或者這是過去已經準備好的東西？

Well, Marcus, the announcement on ADM, we -- that's something that we had previously disclosed, and it's -- we've reached an interim consent order with -- in partnership with ADM. So this we'll have requirements as we move ahead. The -- what we know about remediation that's probable and estimable is part of our reserve, but there will also be capital and operating costs that go in line with complying with the consent order. It's not expected to be material for 3M, but it is something that will become part of our operational costs as we move ahead.

好吧，馬庫斯，關於 ADM 的公告，我們 - 這是我們之前披露過的東西，而且 - 我們已經與 ADM 達成了臨時同意令。因此，在我們前進的過程中，我們會有一些要求。我們所知道的可能和可估計的補救措施是我們儲備的一部分，但也會有與遵守同意令一致的資本和運營成本。預計這對 3M 來說不會很重要，但隨著我們的發展，這將成為我們運營成本的一部分。

And that concludes the question-and-answer portion of our conference call. I will now turn the call back over to Mike Roman for some closing remarks.

我們電話會議的問答部分到此結束。我現在將把電話轉回給 Mike Roman 做一些結束語。

To wrap up, the 3M team delivered another strong operational performance in the second quarter. In a challenging environment, we posted robust cash flow, managed costs and continue to invest for the future. We will continue to fight COVID-19 from all angles, and we are well positioned to deliver value for our customers and shareholders during the pandemic and as the economy recovers. Thank you for joining us.

總而言之，3M 團隊在第二季度再次取得了強勁的運營業績。在充滿挑戰的環境中，我們公佈了強勁的現金流、管理成本並繼續為未來投資。我們將繼續從各個角度與 COVID-19 作鬥爭，我們已做好準備，在大流行期間和經濟復甦期間為我們的客戶和股東創造價值。感謝您加入我們。

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.

女士們先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開您的線路。