3M (MMM) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the 3M Third Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded Tuesday, October 24, 2023.

女士們先生們，謝謝你們的支持。歡迎參加 3M 第三季財報電話會議。 （操作員說明）謹此提醒，本次會議將於 2023 年 10 月 24 日星期二錄製。

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

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

Thank you, and good morning, everyone, and welcome to our third quarter earnings conference call. With me today are Mike Roman, 3M's Chairman and Chief Executive Officer; and Monish Patolawala, our President and Chief Financial Officer. Mike and Monish will make some formal comments and then we'll take your questions. Please note that today's earnings release and slide presentation accompanying this call are posted on the homepage of our Investor Relations website at 3m.com.

謝謝大家，大家早安，歡迎參加我們的第三季財報電話會議。今天與我在一起的有 3M 董事長兼執行長 Mike Roman；以及我們的總裁兼財務長 Monish Patolawala。麥克和莫尼什將發表一些正式評論，然後我們將回答您的問題。請注意，今天的收益發布和伴隨本次電話會議的幻燈片演示已發佈在我們的投資者關係網站 3m.com 的主頁上。

Please turn to Slide 2. Please take a moment to read the forward-looking statement. During today's conference call, we'll be making 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.

請翻到投影片 2。請花點時間閱讀前瞻性聲明。在今天的電話會議上，我們將做出某些預測性陳述，以反映我們目前對 3M 未來業績和財務表現的看法。這些陳述是基於對未來事件的某些假設和預期，這些假設和預期存在風險和不確定性。我們最新的 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。

Please note throughout today's presentation, we'll be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in the attachments to today's press release.

請注意，在今天的整個演示中，我們將引用某些非公認會計準則財務指標。非公認會計原則措施的調節可以在今天新聞稿的附件中找到。

With that, please turn to Slide 3. And I'll now hand the call off to Mike. Mike?

接下來，請轉到投影片 3。現在我將把電話轉給 Mike。麥克風？

Thank you, Bruce. Good morning, everyone, and thank you for joining us. In the third quarter, we built momentum through strong operational execution as we again delivered for our customers, positioning us for a solid close to 2023. On an adjusted basis, we delivered earnings ahead of our expectations, expanded margins sequentially across all four businesses and achieved our third consecutive quarter of double-digit year-on-year growth in free cash flow.

謝謝你，布魯斯。大家早安，感謝您加入我們。第三季度，我們透過強大的營運執行力建立了動力，再次為客戶交付產品，為接近2023 年奠定了堅實的基礎。在調整後的基礎上，我們實現了超出預期的盈利，所有四項業務的利潤率相繼擴大，自由現金流連續第三個季度實現兩位數年增長。

As we make progress and deliver improved financial results, we are increasing our full year adjusted earnings per share guidance to $8.95 to $9.15, up from a previous range of $8.60 to $9.10, and our adjusted free cash flow conversion range to 100% to 110%, up from 90% to 100% previously.

隨著我們取得進展並改善財務業績，我們將全年調整後每股收益指引從先前的8.60 美元至9.10 美元提高至8.95 美元至9.15 美元，並將調整後自由現金流轉換範圍提高至100% 至110% ，從之前的 90% 上升到 100%。

We continue to deliver against our priorities. We are driving performance throughout 3M with strong operational execution, restructuring actions and spending discipline. We are progressing the spin of the Health Care business, which we expect to be completed during the first half of 2024. And we are reducing risk and uncertainty by reaching significant settlements to address Combat Arms and PFAS litigation. I will now provide some additional context around how we are advancing these priorities.

我們繼續兌現我們的優先事項。我們透過強大的營運執行力、重組行動和支出紀律來推動整個 3M 的績效。我們正在推動醫療保健業務的轉型，預計將於 2024 年上半年完成。我們正在透過達成重大和解來解決戰鬥武器和 PFAS 訴訟，從而降低風險和不確定性。我現在將提供一些有關我們如何推進這些優先事項的額外背景資訊。

Next slide, please. Our margin expansion clearly demonstrates the performance our team is driving throughout 3M. We delivered 240 basis points of year-over-year adjusted operating income margin expansion, excluding 80 basis points of restructuring-related charges. We are strengthening our business in several important ways.

請下一張投影片。我們的利潤率擴張清楚地表明了我們的團隊在整個 3M 中推動的績效。調整後營業利益率年增 240 個基點，不包括 80 個基點的重組相關費用。我們正在透過幾個重要的方式來加強我們的業務。

We are progressing with our restructuring actions to streamline our organization, reduce structural costs and get us closer to customers. We have leaned out the center of our company, simplified our global supply chain organization and optimized our global go-to-market models.

我們正在推動重組行動，以精簡我們的組織、降低結構成本並拉近我們與客戶的距離。我們精簡了公司的中心，簡化了我們的全球供應鏈組織，優化了我們的全球上市模式。

At the same time, we are advancing supply chain performance to improve service, drive productivity and yield, expand gross margins and increase cash conversion. These results are being supported by initiatives that use our continuous improvement toolkit and leverage data and data analytics. For example, we have benefited from more than 60 Kaizen events this year to improve existing processes in our largest plants.

同時，我們正在提高供應鏈績效，以改善服務、提高生產力和產量、擴大毛利率並提高現金轉換率。這些結果得到了使用我們的持續改進工具包並利用數據和數據分析的措施的支持。例如，我們今年受益於 60 多場 Kaizen 活動，以改善我們最大工廠的現有流程。

We are also progressing the spin of our Health Care business, building the leadership team as we work toward completing the spin in the first half of 2024. During the quarter, we added two experienced leaders, naming Bryan Hanson as the CEO of the stand-alone Health Care business; and Carrie Cox as the Board Chair.

我們也正在推動醫療保健業務的轉型，建立領導團隊，努力在 2024 年上半年完成轉型。在本季度，我們增加了兩名經驗豐富的領導者，任命 Bryan Hanson 為該部門的執行長。單獨的醫療保健業務；凱莉·考克斯 (Carrie Cox) 擔任董事會主席。

Finally, we continue to manage risk and uncertainty by proactively and effectively managing litigation. We announced the Combat Arms settlement. And we are working with all parties and the courts to implement it. The settlement administration process has been established and funded. The bellwether trial verdicts have been settled. And the process for notifying and settling with claimants has begun.

最後，我們繼續透過主動有效地管理訴訟來管理風險和不確定性。我們宣布了戰鬥武器和解協議。我們正在與各方和法院合作實施。和解管理流程已經建立並提供資金。領頭羊的審判判決已經塵埃落定。通知索賠人並與索賠人達成和解的程序已經開始。

With respect to PFAS, the public water supplier settlement we announced last quarter has received preliminary court approval. We successfully resolved objections from state attorneys general and are working toward approval with the final hearing set for early February next year.

關於 PFAS，我們上季宣布的公共供水商和解協議已獲得法院初步批准。我們成功解決了州總檢察長的反對意見，並正在努力爭取批准，最終聽證會定於明年二月初舉行。

In closing, I want to share a few thoughts about our future. Our momentum accelerates our ability to define where we go next at 3M as we prioritize attractive markets where we have the right to win and the opportunity to differentiate ourselves through our unique capabilities and strengths.

最後，我想分享一些關於我們未來的想法。我們的動力加速了我們確定 3M 下一步發展方向的能力，因為我們優先考慮有吸引力的市場，在這些市場中我們有權利獲勝，並有機會透過我們獨特的能力和優勢使自己脫穎而出。

A good example is our automotive OEM business, where we continue to outperform the market with double-digit growth this quarter. Auto electrification is on track to be a $600 million business this year and has delivered organic growth of 30% year-to-date. Our material science expertise has led us to build a new business.

一個很好的例子是我們的汽車 OEM 業務，本季我們繼續跑贏市場，並實現兩位數的成長。汽車電氣化今年有望成為一項價值 6 億美元的業務，今年迄今已實現 30% 的有機成長。我們的材料科學專業知識引導我們建立新業務。

And we see similar opportunities in other core platforms such as safety, home improvement and consumer electronics. We are also prioritizing emerging global trends that have attractive growth rates and customer needs that match up well with 3M capabilities. We are building new platforms in areas like climate technology, industrial automation and next-generation electronics.

我們在安全、家居裝修和消費性電子產品等其他核心平台上也看到了類似的機會。我們還優先考慮具有有吸引力的成長率和與 3M 能力非常匹配的客戶需求的新興全球趨勢。我們正在氣候技術、工業自動化和下一代電子產品等領域建立新平台。

Before I hand it over to Monish for additional insight into our performance, a few closing thoughts. I am pleased with the way our teams are executing. They delivered third quarter results that build on the momentum we saw in the second quarter, setting us up for a solid close to 2023.

在我將其交給莫尼什以進一步了解我們的表現之前，我有一些總結性的想法。我對我們團隊的執行方式感到滿意。他們在第二季的勢頭基礎上發布了第三季業績，為我們在 2023 年實現穩健奠定了基礎。

We are advancing our priorities, driving performance, progressing our Health Care spin and reducing risk and uncertainty. 3M is delivering today lower cost, better margins and greater cash generation and building for tomorrow, prioritizing growth platforms, innovating with impact and empowering our teams.

我們正在推進我們的優先事項、提高績效、推進我們的醫療保健業務並降低風險和不確定性。 3M 如今正在實現更低的成本、更高的利潤和更多的現金生成，並為明天而建設，優先考慮成長平台，進行具有影響力的創新，並為我們的團隊提供支援。

I will now turn it over to Monish for more details on the third quarter and our outlook for the rest of the year. Monish?

我現在將其轉交給莫尼什，以了解有關第三季度的更多詳細資訊以及我們對今年剩餘時間的展望。莫尼什？

Thank you, Mike, and I wish you all a very good morning. Please turn to Slide 5. As Mike mentioned, we are seeing significant traction from the actions we are taking to strengthen the business.

謝謝你，麥克，祝大家早安。請參閱投影片 5。正如麥克所提到的，我們看到我們為加強業務而採取的行動具有巨大的吸引力。

Through our focus on customers, effective adjustment of production, benefits from efficiency and productivity initiatives, ongoing proactive spending discipline and the relentless focus on managing inventory, we were able to deliver solid adjusted third quarter results, including: sales of $8 billion, at the high end of our guidance range of $7.9 billion to $8 billion; operating margins of 23.2%, an increase of 160 basis points year-on-year and 390 basis points sequentially; earnings per share of $2.68, a year-on-year increase of 3%; and free cash flow of $1.9 billion, up 39% year-on-year with conversion of 130%.

透過我們對客戶的關注、對生產的有效調整、從效率和生產力計劃中獲益、持續主動的支出紀律以及對庫存管理的不懈關注，我們能夠交付穩定的調整後第三季度業績，包括：銷售額80 億美元，我們指引範圍的上限為 79 億至 80 億美元；營業利益率為23.2%，較去年成長160個基點，較上季成長390個基點；每股收益2.68美元，年增3%；自由現金流為19億美元，年增39%，轉換率為130%。

Organic sales on an adjusted basis declined 3.1% versus last year. This included an expected year-on-year headwind of approximately $140 million or 1.7 percentage points related to lower disposable respirator demand and last year's exit of our operations in Russia. Excluding this, Q3 adjusted organic sales were down 1.4%.

調整後的有機銷售額比去年下降 3.1%。其中包括與一次性呼吸器需求下降以及去年我們退出俄羅斯業務相關的預計將年比逆風約為 1.4 億美元或 1.7 個百分點。排除這一點，第三季調整後的有機銷售額下降了 1.4%。

Consumer and electronics end markets continue to be soft. Our adjusted organic sales declined year-on-year mid-single digits in our electronics business and high single digits in Consumer. This softness was partially offset by strength in our automotive OEM business. Regionally, the U.S. was up slightly despite continued challenges in retail. Europe remains soft, and China was down mid-teens year-on-year organically due to continued end market softness, along with lapping strong sales backlog recovery in the prior year.

消費和電子終端市場持續疲軟。調整後的電子業務有機銷售額較去年同期下降了個位數中位，而消費品業務的有機銷售額則出現了高個位數下降。這種疲軟被我們汽車原始設備製造商業務的強勁所部分抵消。從地區來看，儘管零售業持續面臨挑戰，但美國仍小幅上漲。歐洲依然疲軟，而中國由於終端市場持續疲軟以及去年銷售積壓的強勁復甦，有機地年減了十幾歲。

Our strong adjusted EPS of $2.68 exceeded our expectations of $2.25 to $2.40. Roughly 2/3 of the beat was driven by operational execution in our supply chain and proactive spending discipline and the balance driven by restructuring timing. The restructuring actions we announced earlier this year are largely on track. And we are seeing favorable margin impact in our results. We continue to expect full year pretax restructuring benefits of $400 million to $450 million with offsetting charges.

我們強勁的調整後每股收益為 2.68 美元，超出了我們 2.2​​5 美元至 2.40 美元的預期。大約 2/3 的成長是由供應鏈中的營運執行和積極的支出紀律以及重組時機驅動的平衡所推動的。我們今年稍早宣布的重組行動基本上已步入正軌。我們看到我們的業績對利潤率產生了有利的影響。我們仍預計全年稅前重組收益將達到 4 億至 4.5 億美元（包括抵銷費用）。

Turning to Slide 6 for the components that drove our year-on-year operating margin and earnings performance. Manufacturing productivity and restructuring actions, strong spending discipline and selling prices, partially offset by lower sales volumes, investments in the business and the previously mentioned headwinds from disposable respirator and last year's exit of Russia resulted an improvement to operating margins of 260 basis points and to earnings of $0.22 per share.

轉向投影片 6，了解推動我們年比營業利潤和獲利表現的組件。製造生產力和重組行動、強有力的支出紀律和銷售價格，部分被銷量下降、業務投資以及前面提到的一次性呼吸器和去年退出俄羅斯帶來的不利因素所抵消，導致營業利潤率提高了260個基點，每股收益 0.22 美元。

Pretax restructuring and related charges in the quarter were $68 million or a negative impact to margins of 80 basis points and $0.10 to earnings. This charge was lower than our anticipated range of $125 million to $175 million in Q3 due to factors that impacted the timing of actions that are being pushed into Q4. The carryover impact of higher raw material, logistics and energy cost inflation created a year-on-year headwind of approximately $25 million or a negative 30 basis points impact to operating margins and $0.03 to earnings.

本季稅前重組及相關費用為 6,800 萬美元，對利潤率產生 80 個基點的負面影響，對收益產生 0.10 美元的負面影響。由於影響第四季行動時間的因素，該費用低於我們第三季 1.25 億美元至 1.75 億美元的預期範圍。原料、物流和能源成本通膨上升的結轉影響造成了約 2,500 萬美元的年比逆風，即對營業利潤產生 30 個基點的負面影響，對收益產生 0.03 美元的負面影響。

Foreign currency translation was a positive 0.6% impact to total adjusted sales. This resulted in a $0.01 tailwind to earnings per share. Last year's food safety divestiture and the reconsolidation of Aearo Technologies resulted in a net year-on-year tailwind of 10 basis points to margins and no impact to earnings. Finally, other financial items decreased earnings by a net $0.02 per share year-on-year.

外幣換算對調整後總銷售額產生了 0.6% 的正面影響。這導致每股收益增加 0.01 美元。去年的食品安全剝離和 Aearo Technologies 的重新整合導致利潤率年淨增長 10 個基點，但對盈利沒有影響。最後，其他金融項目使每股淨收益年減 0.02 美元。

In summary, our team's focus on driving productivity, executing restructuring actions and controlling spending continues to yield results. These actions drove meaningful year-on-year and sequential improvement in adjusted operating margins.

總之，我們團隊對提高生產力、執行重組行動和控制改善的關注繼續取得成果。這些行動推動了調整後營業利潤率的年比和連續改善。

Please turn to Slide 7. Third quarter adjusted free cash flow was $1.9 billion, up 39% year-on-year with a conversion of 130%, up 360 basis points versus last year's Q3. This year-on-year improvement was driven by our ongoing focus on working capital management, especially inventory. Inventory was down over $200 million sequentially and $550 million year-on-year as we benefit from the power of daily management and data and data analytics to speed up inventory terms.

請參閱投影片 7。第三季調整後自由現金流為 19 億美元，年成長 39%，轉換率為 130%，比去年第三季成長 360 個基點。這一同比改善是由於我們持續關注營運資金管理，特別是庫存而推動的。由於我們受益於日常管理以及數據和數據分析的力量來加快庫存期限，庫存環比減少了 2 億美元，比去年同期減少了 5.5 億美元。

As always, there is more we can do and will do to continue to realize benefits from our actions as we move forward. Adjusted capital expenditures were $367 million in the quarter, as we continue to invest in growth, productivity and sustainability. During the quarter, we returned $828 million to shareholders via dividends. Net debt at the end of Q3 stood at $10.8 billion, a reduction of 11% year-on-year.

像往常一樣，我們可以並將會做更多的事情，以便在我們前進的過程中繼續從我們的行動中獲益。隨著我們繼續投資於成長、生產力和永續性，本季調整後的資本支出為 3.67 億美元。本季度，我們透過股息向股東返還 8.28 億美元。第三季末淨債務為108億美元，年減11%。

Our business segments continue their long history of robust cash flow generation. In addition, our proven access to capital markets, along with the anticipated one-time dividend from the spin of Health Care at leverage of 3x to 3.5x EBITDA and 19.9% retained stake, will provide additional financial flexibility. This combined with our existing strong capital structure provides us with the ability to continue to invest in the business, return capital to shareholders and meet the cash flow needs related to ongoing legal matters.

我們的業務部門延續了其強勁現金流生成的悠久歷史。此外，我們經過驗證的資本市場准入，以及預計以 3 至 3.5 倍 EBITDA 槓桿和 19.9% 保留股權從醫療保健業務分拆中獲得的一次性股息，將提供額外的財務靈活性。這與我們現有強大的資本結構相結合，使我們有能力繼續投資業務、向股東返還資本並滿足與持續法律事務相關的現金流需求。

Now please turn to Slide 9 for our business group performance. Starting with our Safety and Industrial business, which posted sales of $2.8 billion or down 5.8% organically. This result included a year-on-year headwind of approximately $130 million or 4.3 percentage points due to last year's COVID-related disposable respirator decline and exit of our operations in Russia. Excluding this, Q3 adjusted organic sales were down 1.5%.

現在請翻到投影片 9，了解我們業務組的表現。首先是我們的安全和工業業務，該業務銷售額為 28 億美元，有機下降 5.8%。由於去年與新冠病毒相關的一次性呼吸器銷量下降以及我們在俄羅斯的業務退出，導致這一結果比去年同期下降了約 1.3 億美元或 4.3 個百分點。排除這一點，第三季調整後的有機銷售額下降了 1.5%。

Personal safety was down high single digits due to last year's COVID-related disposable respirator comp. Excluding disposable respirators, personal safety was up high single digits organically. Closure and masking continued to be impacted by lower packaging and shipping activity and industrial adhesives and tapes by end market softness in electronics. Abrasives, electrical markets and automotive aftermarket declined versus last year's strong comparisons. And finally, organic growth in our roofing granules business was up high single digits.

由於去年與新冠病毒相關的一次性呼吸器補償，人身安全下降了高個位數。不包括一次性呼吸器，個人安全有機增長了高個位數。封閉和遮蔽繼續受到包裝和運輸活動減少的影響，工業黏合劑和膠帶則受到電子產品終端市場疲軟的影響。與去年的強勁對比相比，磨料、電氣市場和汽車售後市場均有所下降。最後，我們的屋頂顆粒業務的有機成長達到了高個位數。

Adjusted operating income was $708 million or up 5% versus last year. Adjusted operating margins were 25.7%, up 250 basis points year-on-year and up 350 basis points sequentially. The year-on-year improvement in margins was mainly driven by ongoing productivity actions, restructuring benefits, strong spending discipline and price. Partially offsetting these benefits were headwinds from lower sales volume and restructuring costs.

調整後營業收入為 7.08 億美元，比去年成長 5%。調整後營業利益率為 25.7%，較去年成長 250 個基點，較上季成長 350 個基點。利潤率的同比改善主要是由持續的生產力行動、重組效益、嚴格的支出紀律和價格所推動的。銷售下降和重組成本帶來的不利因素部分抵消了這些好處。

Moving to Transportation and Electronics on Slide 10, which posted Q3 adjusted sales of $1.9 billion. Adjusted organic growth declined 1.8% year-on-year, largely due to expected weakness in electronics. Our electronics business experienced a year-on-year mid-single-digit decline in adjusted organic sales as semiconductor and data center end market demand continues to remain soft.

前往投影片 10 上的運輸和電子產品，其中顯示第三季調整後銷售額為 19 億美元。調整後的有機成長較去年同期下降 1.8%，主要是由於電子產品的預期疲軟。由於半導體和資料中心終端市場需求持續疲軟，我們的電子業務調整後有機銷售額較去年同期出現中個位數下降。

We are starting to see signs of stabilization in consumer electronics end market. However, we are closely monitoring demand trends as we head into the upcoming holiday season. Our auto OEM business had a strong quarter, increasing approximately 16% year-on-year versus a low single-digit global car and light truck build as we continued to gain penetration on automotive platforms.

我們開始看到消費性電子終端市場穩定的跡象。然而，隨著即將到來的假期季節的到來，我們正在密切關注需求趨勢。我們的汽車 OEM 業務季度表現強勁，隨著我們繼續提高汽車平台的滲透率，同比增長約 16%，而全球汽車和輕型卡車產量僅為個位數。

Turning to the rest of Transportation and Electronics. Commercial solutions and transportation safety both declined mid-single digits year-on-year, mainly driven by weakness in China while advanced materials grew low single digits. Transportation and Electronics delivered $494 million in adjusted operating income, up 21% year-on-year.

轉向交通和電子領域的其餘部分。商業解決方案和運輸安全年比均出現中個位數下降，主要是由於中國經濟疲軟而先進材料成長較低個位數。運輸和電子業務實現調整後營業收入 4.94 億美元，年增 21%。

Adjusted operating margins were 26.3%, up 460 basis points year-on-year and up 650 basis points sequentially. The year-on-year improvement in margins was driven by productivity actions, restructuring benefits, strong spending discipline and price. Partially offsetting these benefits were headwinds from lower sales volumes and restructuring costs.

調整後營業利益率為 26.3%，較去年成長 460 個基點，較上季成長 650 個基點。利潤率的同比改善是由生產力行動、重組效益、嚴格的支出紀律和價格所推動的。銷售下降和重組成本帶來的不利因素部分抵消了這些好處。

Looking at our Health Care business on Slide 11. Q3 sales were $2.1 billion with organic growth up 2.4% versus last year. Organic sales in oral care were up high single digits year-on-year and medical solutions grew low single digits organically, including continued impact from lower post-COVID-related biopharma demand. Health information systems declined low single digits due to tighter hospital budgets. As procedure volumes continue to improve and hospital budgets stabilize, we are confident in the long-term outlook of this business.

看看幻燈片 11 上我們的醫療保健業務。第三季銷售額為 21 億美元，有機成長比去年增長 2.4%。口腔護理領域的有機銷售額同比增長了高個位數，而醫療解決方案的有機銷售額增長了低個位數，其中包括新冠疫情後相關生物製藥需求下降的持續影響。由於醫院預算緊張，衛生資訊系統下降了低個位數。隨著手術量持續增加和醫院預算穩定，我們對該業務的長期前景充滿信心。

Health Care's third quarter operating income was $460 million or up 2% year-on-year. Operating margins were 22.2%, up 50 basis points year-on-year and up sequentially 240 basis points. The year-on-year improvement in margins was driven by productivity actions, restructuring benefits strong spending discipline and price. These benefits were partially offset by restructuring costs.

醫療保健第三季營業收入為4.6億美元，較去年同期成長2%。營業利益率為 22.2%，較去年同期成長 50 個基點，較上季成長 240 個基點。利潤率的同比改善是由生產力行動、重組受益於強有力的支出紀律和價格推動的。這些收益被重組成本部分抵銷。

Finally, on Slide 12. Our Consumer business posted third quarter sales of $1.3 billion. Organic sales declined 7.2% year-on-year as discretionary spending trends on hardline categories remained subdued. The back-to-school season was soft and rising interest rates continued to impact the housing market and related spending.

最後，在投影片 12 上。我們的消費者業務公佈第三季銷售額為 13 億美元。由於強硬類別的可自由支配支出趨勢仍低迷，有機銷售額年減 7.2%。返校季節疲軟，利率上升持續影響房地產市場和相關支出。

Consumer's third quarter operating income was $269 million, down 10% compared to last year, with operating margins of 20.5%, down 70 basis points year-on-year, however, were up 230 basis points sequentially. The year-on-year decline in margins was driven by headwinds from lower sales volumes and restructuring costs. These headwinds were partially offset by benefits from productivity actions, restructuring and strong spending discipline and price.

消費者第三季營業收入為2.69億美元，年減10%，營業利益率為20.5%，較去年同期下降70個基點，但較上季成長230個基點。利潤率年減是由於銷售下降和重組成本帶來的不利因素所造成的。這些不利因素被生產力行動、重組以及嚴格的支出紀律和價格帶來的好處部分抵消。

That concludes our remarks on the third quarter. Please turn to Slide 14 for an update on our full year's expectations. Our strong third quarter performance shows the results of the significant actions we have put in place this year to generate better productivity, yield and efficiency from our supply chain, drive simplification, manage costs and deliver for our customers in an uncertain macro environment.

我們對第三季的評論到此結束。請參閱投影片 14 以了解我們全年預期的最新情況。我們強勁的第三季業績顯示了我們今年採取的重大行動的結果，這些行動旨在提高供應鏈的生產力、產量和效率，推動簡化，管理成本並在不確定的宏觀環境中為客戶提供服務。

As a result, we are raising our full year 2023 adjusted earnings per share and free cash flow conversion guidance. We now expect full year adjusted earnings in the range of $8.95 to $9.15 versus our prior range of $8.60 to $9.10. We are also updating our full year adjusted free cash flow conversion to be in a forecasted range of 100% to 110% versus 90% to 100% previously.

因此，我們提高了 2023 年全年調整後每股盈餘和自由現金流轉換指引。我們現在預計全年調整後獲利範圍為 8.95 美元至 9.15 美元，而之前的範圍為 8.60 美元至 9.10 美元。我們也將全年調整後的自由現金流轉換率更新為 100% 至 110% 的預測範圍，而先前為 90% 至 100%。

Based on our year-to-date performance, we expect full year adjusted organic growth to be down approximately 3% versus our prior guidance to be at the lower end of flat to minus 3%. This updated expectation includes an incremental headwind of $50 million from continued softness in disposable respirator demand. We now estimate a full year sales decline for disposable respirators of approximately $600 million versus $550 million previously.

根據我們今年迄今的業績，我們預計全年調整後的有機成長將下降約 3%，而我們先前的指引為持平下限至負 3%。這項更新的預期包括由於一次性呼吸器需求持續疲軟而帶來的 5000 萬美元的增量阻力。我們現在估計一次性呼吸器的全年銷售額將下降約 6 億美元，而之前為 5.5 億美元。

Looking ahead to the implied fourth quarter. We expect end market trends to be consistent with Q3. Hence, we anticipate fourth quarter adjusted sales to be in the range of $7.6 billion to $7.7 billion, taking into consideration normal seasonality with fewer sales days due to holidays.

展望第四季。我們預計終端市場趨勢將與第三季保持一致。因此，考慮到正常季節性因素以及假日銷售天數減少的情況，我們預計第四季度調整後銷售額將在 76 億美元至 77 億美元之間。

Fourth quarter pretax restructuring charges are expected to be in the range of $70 million to $120 million, incorporating the timing impact I mentioned earlier, with pretax benefits of $145 million to $195 million. Taken together, we expect fourth quarter adjusted earnings per share will be in the range of $2.13 to $2.33.

考慮到我之前提到的時間影響，第四季稅前重組費用預計在 7,000 萬至 1.2 億美元之間，稅前收益為 1.45 億至 1.95 億美元。綜合來看，我們預計第四季度調整後每股收益將在 2.13 美元至 2.33 美元之間。

To wrap up, we are very focused on our priorities by driving improved performance through strong operational execution, progressing on our restructuring actions and spending discipline, successfully spinning off Health Care and reducing risk by managing litigation exposures.

總而言之，我們非常專注於我們的優先事項，透過強有力的營運執行來推動績效的提高，在重組行動和支出紀律方面取得進展，成功地剝離醫療保健業務，並透過管理訴訟風險來降低風險。

At the same time, we are positioning 3M for the future as we prioritize the most attractive markets, invest to support continued innovation and capitalize on emerging opportunities. We expect our actions will continue to build momentum and drive long-term improvement in our organic growth, margins and cash flow performance into the future.

同時，我們為 3M 的未來定位，優先考慮最具吸引力的市場，進行投資以支持持續創新並利用新興機會。我們預計我們的行動將繼續累積動力，推動未來有機成長、利潤率和現金流表現的長期改善。

As we exit 2023, we will be a stronger, leaner and a more focused 3M. And I remain confident in our future. Our solid third quarter is a direct result of the hard work of 3M employees. I want to thank them for their dedication and focus as they continue to deliver in partnership with our suppliers for customers and shareholders.

2023 年結束時，我們將成為更強大、更精簡、更專注的 3M。我對我們的未來仍然充滿信心。我們第三季的業績表現是 3M 員工辛勤工作的直接結果。我要感謝他們的奉獻和專注，他們繼續與我們的供應商合作，為客戶和股東提供服務。

That concludes my remarks. We will now take your questions.

我的發言到此結束。我們現在將回答您的問題。

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

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

I haven't been able to say this in a while but a pretty solid, complete quarter overall, so some progress there. But guys, I want to back up a little bit. What are the remaining steps to get Health Care spin complete? Any big hurdles still remaining?

我有一段時間沒能這麼說了，但總的來說，這是一個相當穩定、完整的季度，所以我取得了一些進展。但是夥計們，我想支持一下。完成醫療保健旋轉還需要哪些步驟？還存在什麼大的障礙嗎？

Yes, Scott, I would say the team continues to make very good progress. And so we don't see any hurdles ahead of us. There's a lot of work to do to get ready for the spin. And so we've got work to do, getting ready for each step of that process. As we talked about in my remarks, we named the CEO and we're adding to the leadership team and getting that built out. So that's really an important foundation. We have the Board Chair named and continue to work on filling out the Board. So those are important steps.

是的，史考特，我想說團隊繼續取得非常好的進展。因此，我們認為我們面前沒有任何障礙。為旋轉做好準備還有很多工作要做。因此，我們有工作要做，為該過程的每一步做好準備。正如我們在發言中談到的，我們任命了首席執行官，我們正在增加領導團隊並進行建設。所以這確實是一個重要的基礎。我們任命了董事會主席，並繼續努力充實董事會。所以這些都是重要的步驟。

I don't see -- the team has given us great confidence that we're going to continue to progress. And we're on track for the timing that we talked about in early 2024 and see ourselves getting there successfully. Importantly, for us, it's -- much of it is, as we talked about, is about getting ready for the spin of Health Care. It's also about getting ready to stand up 3M as a stand-alone company with the Health Care spin being completed.

我不明白——團隊給了我們很大的信心，讓我們相信我們會繼續進步。我們正朝著我們在 2024 年初談到的時間表邁進，並看到我們能夠成功實現這一目標。重要的是，對我們來說，正如我們所說，其中很大一部分是為醫療保健的發展做好準備。隨著醫療保健業務的分拆完成，3M 也將做好準備，將其打造成一家獨立的公司。

So we're putting focus there. And even what we talked about in the quarter, really driving the priorities that we are talking about, the execution in our operational execution is an important part of getting ready for 3M for the spin as well. And we're making good progress there as you noted.

所以我們把重點放在那裡。即使我們在本季度談到的內容，真正推動了我們正在討論的優先事項，我們的營運執行中的執行也是為 3M 的旋轉做好準備的重要組成部分。正如您所指出的，我們正在這方面取得良好進展。

Just process-wise to add to Mike's comments, the teams are working through system changes, standing up legal entities and as well as all the regulatory filings, Scott, that we need to do. And that's what everyone is focused on from the Health Care side.

只是在流程方面補充麥克的評論，團隊正在努力完成系統變更、建立法律實體以及我們需要做的所有監管備案。這就是醫療保健方面每個人都關注的問題。

That's helpful. So Mike, just taking your comments a little further, at the new 3M, do you envision a new 3M where you can kind of run at lower levels of CapEx, lower levels of even potentially R&D as a percent of sales? And the knock on 3M was always that it costs a lot of money to drive a point of growth. And sometimes with incrementals, that worked out well. But in down cycles, that certainly did not work out well. But is there a new vision of 3M, I should say, that you can run at kind of more productive, efficient levels of CapEx and R&D?

這很有幫助。那麼，麥克，請進一步發表您的評論，在新的 3M，您是否設想新的 3M 可以以較低的資本支出水平運行，甚至可以降低潛在的研發佔銷售額的百分比？對 3M 的批評始終是，要推動成長點需要花費大量資金。有時透過增量，效果很好。但在下行週期中，這顯然效果不佳。但我應該說，3M 是否有一個新的願景，即您可以以更有效率的資本支出和研發水準運作？

Yes, Scott, there's a couple of dimensions to the answer to your question. The first starts with what we've been talking about. We announced a restructuring back in Q1. And that was really coming from what we had learned as we operated our businesses and we looked at where we were going with our supply chains in the face of some of the challenges in supply chains globally. And it was really behind that was an expectation that we could drive greater productivity, improvement in our execution, stronger performance, improved margins. And so that was really the foundation of that restructuring.

是的，斯科特，你的問題的答案有幾個維度。首先從我們一直在談論的內容開始。我們早在第一季就宣布了重組。這其實來自我們在經營業務時所學到的知識，我們研究了面對全球供應鏈的一些挑戰，我們的供應鏈將走向何方。這背後的真正原因是我們期望能夠提高生產力、改善執行力、增強績效、提高利潤率。這確實是重組的基礎。

And so I think part of the answer to your question is we took those decisions to lean out the center of the company, simplify our supply chain, streamline our go-to-market models. Those are the foundation for the future of 3M. And those are, you can see, starting to demonstrate that we can drive improved financial performance for the company. And that's -- we expect that to be a foundation for the future as well. I even talked about this is -- with that performance starting to build some momentum, we can accelerate how we view the future.

因此，我認為你問題的部分答案是我們做出這些決定是為了精簡公司的中心，簡化我們的供應鏈，簡化我們的上市模式。這些是 3M 未來的基礎。您可以看到，這些開始證明我們可以推動公司財務表現的改善。我們希望這也成為未來的基礎。我甚至談到了這一點——隨著這種表現開始形成一些動力，我們可以加快我們對未來的看法。

And then you are talking about investing in growth and innovation and productivity and sustainability. And it will continue to be our capital allocation, first priority is going to be investing in organic growth, in R&D and CapEx and really thinking of and targeting high-growth market spaces, places where we can differentiate ourselves with our innovation capabilities, where we can be aligned to emerging market trends. So I think that how we prioritize that investment is going to be aligned with where we see that ability to make a difference. So both are important foundations for the future.

然後你談論的是對成長、創新、生產力和永續性的投資。這將繼續是我們的資本配置，首要任務是投資於有機成長、研發和資本支出，並真正考慮和瞄準高成長的市場空間，在這些空間中我們可以透過創新能力使自己脫穎而出，在這些空間中我們可以與新興市場趨勢保持一致。因此，我認為我們如何確定投資的優先順序將與我們認為能夠發揮作用的能力保持一致。因此，兩者都是未來的重要基礎。

Our next question comes from Andrew Obin with Bank of America.

我們的下一個問題來自美國銀行的安德魯·奧賓。

Just a question on electronics, been a headwind for a while. What KPIs are you looking at? When do you think -- and I think you said that was broadly in line with expectations. But when do you see the light at the end of the tunnel? When does it bottom -- what does it take for this business to bottom?

只是一個關於電子產品的問題，已經有一段時間了。您關注哪些 KPI？你什麼時候認為——我想你說過這與預期基本一致。但什麼時候才能看到隧道盡頭的曙光呢？什麼時候觸底——這個行業需要什麼才能觸底？

Yes, Andrew, I would say we came through third quarter, we still saw, as we said, soft end markets for electronics. And that's consumer electronics, it's into semiconductor, it's into a big part of our -- what we have as a focus in our customers in electronics. When we look ahead, there's some uncertainty. We're starting to see, as Monish said, electronics stabilize. I think that really reflects that we don't see it continuing to go down, it's starting to stabilize. There's some -- companies are talking about things getting better as they go forward.

是的，安德魯，我想說，我們已經度過了第三季度，正如我們所說，我們仍然看到電子產品的軟終端市場。這就是消費性電子產品，它涉及半導體，它涉及我們的電子產品客戶的一個重點。當我們展望未來時，存在一些不確定性。正如莫尼什所說，我們開始看到電子產品趨於穩定。我認為這確實反映出我們沒有看到它繼續下跌，而是開始穩定下來。有一些公司正在談論隨著他們的發展變得更好。

I would say we're watching it closely. We expect Q4 to look a lot like Q3 in our end markets, and I would say electronics included. So we're watching what we always watch, our customers, our large electronics customers in consumer electronics and semiconductor associated with data centers. And those are the -- that's where we're going to be taking the lead from where we see demand going, where we see market performance going. When we see the market improve, we'll take the lead from them.

我想說我們正在密切關注。我們預計第四季度在我們的終端市場上看起來很像第三季度，我想說包括電子產品。因此，我們正在關注我們一直關注的東西，我們的客戶，我們在與資料中心相關的消費電子和半導體領域的大型電子客戶。這些就是我們將在需求走向、市場表現走向方面發揮領導作用的地方。當我們看到市場好轉時，我們就會從他們那裡起帶頭作用。

Just another data point for you, Andrew. At the end of second quarter, we had said that the way we predicted electronics was the amount of negative Vs quarter-on-quarter would get better. So if you compare us to the first half and the amount we were down year-on-year versus the third quarter, we are less down. It doesn't mean we are not down, but that's another point that Mike was trying to make is that's where we are starting to see some signs of stabilization. But as I said in my prepared remarks, I think we'll have to just watch how the holiday season plays out.

安德魯，這只是給你的另一個數據點。在第二季末，我們曾說過，我們預測電子產品的方式是季度環比的負數將會好轉。因此，如果你將我們與上半年以及我們與第三季度同比下降的金額進行比較，我們的下降幅度較小。這並不意味著我們沒有下降，但這是麥克試圖指出的另一點，那就是我們開始看到一些穩定的跡象。但正如我在準備好的演講中所說，我認為我們只能看看假期的情況如何。

Got you. And just a follow-up question on Health Care. I appreciate that you guys are doing a lot of sort of accounting, et cetera, et cetera. But you have done these separations in the past.

明白你了。關於醫療保健的後續問題。我很感激你們做了很多會計工作，等等。但你過去已經做過這些分離。

And I guess, the question I have, any thoughts as Bryan has joined the company -- I know in the past, there's been headlines about health information system being separated. I know there are other sort of businesses inside Health Care. Any thought about sort of maybe repositioning the portfolio particularly as Bryan came onboard, reposition the portfolio for sort of future as a stand-alone company?

我想，我的問題是，布萊恩加入公司後有什麼想法——我知道過去有關於健康資訊系統分離的頭條新聞。我知道醫療保健領域還有其他類型的業務。有沒有想過重新定位投資組合，特別是在布萊恩加入後，重新定位投資組合，以適應未來作為獨立公司的需要？

Yes, Andrew, going back to really how did we think about the strategy to spin out Health Care, and one of the important questions was do we see Health Care as a leading health care technology company attractive to shareholders with a great future? And that portfolio of businesses, the answer for us was yes. And that the -- the best way to create that value was to stand it up as a stand-alone company. And the portfolio work we had done even over time as part of 3M positioned it to be a successful stand-alone company.

是的，安德魯，回到我們真正如何考慮分拆醫療保健的策略，重要的問題之一是我們是否認為醫療保健是一家對股東有吸引力且擁有美好未來的領先醫療保健技術公司？對於我們的業務組合來說，答案是肯定的。創造這種價值的最佳方式就是將其作為一家獨立的公司站起來。作為 3M 的一部分，我們長期以來所做的投資組合工作使其成為一家成功的獨立公司。

And each of the businesses play an important role there. Now it is going to be an independent company. We'll have a new CEO and a Board. And they will develop the strategies for how they think about creating the greatest value, driving growth for that business, thinking about how to really manage that portfolio of businesses as they go forward. So we see it as being ready to stand forward as a leader and are really confident in the leadership that will take the company as a standalone.

每個企業都在那裡發揮重要作用。現在它將成為一家獨立公司。我們將有一位新的執行長和董事會。他們將制定策略，思考如何創造最大價值，推動業務成長，思考如何在業務發展過程中真正管理業務組合。因此，我們認為它已準備好作為領導者挺身而出，並對領導層將公司作為獨立公司充滿信心。

Our next question comes from the line of Joe Ritchie with Goldman Sachs.

我們的下一個問題來自高盛的喬·里奇。

Can we start just on the restructuring, the benefits and the pushout a little bit of the expenses? Just it seems like you're running ahead of schedule on the benefits. So I'd love to get any color about where this is -- what you see coming in better than expected. And then also just on the pushout on the cost into 4Q, just what were some of the reasons for why the costs are getting pushed out from 3Q to 4Q?

我們可以從重組、收益和削減一些費用開始嗎？只是看起來你的福利提早了。所以我很想知道這是什麼——你看到的比預期更好的結果。然後，關於將成本推至第四季度，成本從第三季推至第四季的原因是什麼？

Yes. So I'll just start, again as a reminder, Joe, the total benefits for this program over the period of the program is $700 million to $900 million with costs approximately of $700 million to $900 million. And coming into the year, we had said for 2023, we would see benefits in the ranges of $400 million to $450 million of benefits and equal offsetting charges. So when you look year-to-date, we are, I would say, largely on track for the year. We still believe we'll be in the $400 million to $450 million of benefits, which will get offset by cost of $400 million to $450 million.

是的。因此，我首先再次提醒一下，喬，該計劃在該計劃期間的總收益為 7 億至 9 億美元，成本約為 7 億至 9 億美元。我們曾說過，到 2023 年，我們將看到 4 億至 4.5 億美元的福利和同等的抵銷費用。因此，當你回顧今年迄今為止的情況時，我想說，今年我們基本上已經步入正軌。我們仍然相信我們將獲得 4 億至 4.5 億美元的收益，而這將被 4 億至 4.5 億美元的成本所抵消。

So the teams have done a really nice job of continuing to execute. There were multiple pieces to this program. One was corporate simplification. The second was streamlining our supply chain. And third was making sure that we are closer to our customers in our business group units. And all three of these programs are running well on track.

因此，團隊在繼續執行方面做得非常出色。這個程式有多個部分。一是公司簡化。第二個是精簡我們的供應鏈。第三是確保我們的業務集團部門更貼近客戶。所有這三個計劃都在正常軌道上運行良好。

As regards to just timing from Q3 to Q4, I would say nothing big. We operate in multiple countries, as you know. And we wanted to make sure we follow all rules and regulations in those countries. And so some items dropped from Q3 to Q4. And we had a couple of other small investments that we had to make in Q3. They're just based on all the work the teams are doing, we just felt better to do it in Q4, so nothing major. So still pretty much largely on track, $400 million to $450 million of benefits for the year and $700 million to $900 million for the program.

至於從第三季到第四季的時間安排，我想說沒什麼大不了的。如您所知，我們在多個國家/地區開展業務。我們希望確保遵守這些國家的所有規則和法規。因此有些項目從第三季下降到了第四季。我們在第三季也必須進行其他一些小額投資。它們只是基於團隊正在做的所有工作，我們只是覺得在第四季度做這件事更好，所以沒什麼大不了的。因此，基本上仍處於正軌，今年的福利為 4 億至 4.5 億美元，該計劃為 7 億至 9 億美元。

Got it. Okay, great. That's helpful, Monish. And then I guess, I know it's probably too early to think about 2024. But if you kind of think through like the price/cost equation from here on out, it seems like raw materials are becoming less and less of a headwind for you guys. Can you maybe just provide any type of framework for 2024 and ultimately, how you think about both price and what you're seeing from a raw mat perspective?

知道了。好的，太好了。這很有幫助，莫尼什。然後我想，我知道現在考慮 2024 年可能還為時過早。但如果你從現在開始仔細思考價格/成本等式，你會發現原材料對你們來說越來越不再是一個阻力。您能否提供 2024 年的任何類型的框架，以及最終您如何看待價格以及從原材料角度看到的情況？

So I'll just start first, Joe, by 2024 is a little ways away. So I think our first focus is just getting Q4 done, getting the teams continuing to focus on our priorities. You've seen what our teams have done. So we continue to execute on our priorities. You've seen we have delivered a solid Q3. We have taken guidance up for the whole year. We're gaining momentum. And we want the team to continue to focus on doing that, getting 2023 closed out. So when we get into 2024 and Q4 2023 earnings call, we'll definitely give you an update on 2024.

所以我先開始吧，喬，距離 2024 年還有一段路要走。因此，我認為我們的首要重點是完成第四季度，讓團隊繼續專注於我們的優先事項。您已經看到了我們團隊所做的事情。因此，我們繼續執行我們的優先事項。您已經看到我們第三季的表現非常出色。我們已經制定了全年的指導方針。我們正在獲得動力。我們希望團隊繼續專注於此，並爭取 2023 年結束。因此，當我們進入 2024 年和 2023 年第四季的財報電話會議時，我們肯定會向您提供 2024 年的最新情況。

To answer your question on deflation and price, I'll start with deflation. I'll start by saying, first of all, the headwinds that we have seen or the carryover headwinds are approximately $25 million in the quarter, which we called out, which is very similar to Q2. And when you look at overall market and material, I would say we are seeing more disinflation than deflation. When you think about places where energy is still a little more -- is still inflationary, downstream materials are still inflationary and then labor is still sticky from an inflation perspective.

為了回答你關於通貨緊縮和價格的問題，我將從通貨緊縮開始。我首先要說的是，我們所看到的阻力或結轉阻力在本季約為 2500 萬美元，我們稱之為，這與第二季度非常相似。當你觀察整個市場和材料時，我會說我們看到的通貨緊縮多於通貨緊縮。當你想到那些能源仍然處於通貨膨脹狀態的地方，下游材料仍然處於通貨膨脹狀態，然後從通貨膨脹的角度來看，勞動力仍然具有黏性。

Where we have seen some benefits is upstream, chemicals and logistics, and the teams have taken advantage of that. But I would say more importantly, I don't think the teams are just focused on material cost. They are more focused on saying, "How do we drive overall cost down in the factories?" Whether it is driving yield and efficiency, whether it is dual sourcing, whether it is making sure we have alternate materials, that's what Peter Gibbons and the team is working. And the work that they have done through this year is clearly evident in the results that you're seeing. So that team has done a very nice job.

我們在上游、化學品和物流領域看到了一些好處，團隊已經利用了這一點。但我想說更重要的是，我認為團隊不僅僅關注材料成本。他們更關注的是“我們如何降低工廠的整體成本？”無論是提高產量和效率，無論是雙重採購，還是確保我們擁有替代材料，這都是 Peter Gibbons 和團隊正在努力的方向。他們今年所做的工作在您所看到的結果中清晰可見。所以這個團隊做得非常好。

And then when it comes to price, I would tell you, we came into the quarter -- into the year, we said low single digits price increase. That's what we are -- as of right now, we are on track with pretty much the same range. And Joe, as you know, you've followed 3M longer than I have, this is not a formula-based pricing. We are very thoughtful about it. We look at it market-by-market, product-by-product, and we make sure that the price that we are charging our customers is a representation of the value that we -- that our customers get.

然後說到價格，我會告訴你，我們進入本季 - 進入今年，我們說價格漲幅較低。這就是我們的情況——截至目前，我們正處於幾乎相同的範圍內。 Joe，如您所知，您關注 3M 的時間比我長，這不是基於公式的定價。我們對此深思熟慮。我們逐一市場、逐一產品地審視它，並確保我們向客戶收取的價格能夠代表我們——我們的客戶所獲得的價值。

And I would say if you leave 2024 aside for a moment, long term, 3M has always had a very good price/cost equation because of the value that we add to our customers. And I don't see that changing. And I believe that with the innovation that we bring, with the customer focus that we have, that, that equation remains.

我想說，如果暫時把 2024 年放在一邊，從長遠來看，3M 一直擁有非常好的價格/成本方程式，因為我們為客戶增加了價值。我認為這種情況不會改變。我相信，憑藉我們帶來的創新，以及我們對客戶的關注，這個等式仍然存在。

Our next question comes from the line of Chris Snyder with UBS.

我們的下一個問題來自瑞銀集團的克里斯·史奈德。

One thing that has really stood out to us over the last couple of quarters is the underlying margin improvement of the business. If we ex out restructuring spend and savings, we see an operating margin on the underlying business of roughly 22% this quarter versus less than 21% in Q2 and like a mid-18s in Q1. So a very strong ramp here. Can you just talk about what's driving that? Outside of the restructuring, why is the underlying business seeing so much margin momentum?

過去幾季對我們來說真正引人注目的一件事是業務的潛在利潤率改善。如果我們排除重組支出和儲蓄，我們看到本季基礎業務的營業利潤率約為 22%，而第二季度不到 21%，第一季約為 18 %。所以這裡有一個非常強大的坡道。您能談談是什麼推動了這個趨勢嗎？除了重組之外，為什麼基礎業務的利潤率成長如此之大？

So I would say, first, Chris, it's a huge thanks to the 3Mers who have been focused on their priorities. The priorities, as Mike mentioned, driving performance across all of 3M, spinning out Health Care, reducing risk by managing litigation, is all starting to show up in the results. To your point, even if you exclude our restructuring costs and benefits, the margin rate is -- has shown a pretty good ramp. And that's driven, I would say, by two or three things.

所以我想說，首先，克里斯，非常感謝 3Mers 一直專注於他們的優先事項。正如 Mike 所提到的，推動整個 3M 部門的績效、剝離醫療保健、透過管理訴訟降低風險等優先事項都開始在結果中顯現出來。就你的觀點而言，即使你排除我們的重組成本和收益，保證金率也顯示出相當不錯的成長。我想說，這是由兩三個因素驅動的。

One is continued execution in the supply chain with some of the restructuring that we have made, and the supply chain is definitely more agile. We are also using a lot of data and data analytics. We have also learned through the pandemic on how to continue to operate our supply chain. So number one, you're starting to see the benefit of the improved yield and efficiency. You're able to take longer runs, too, as material gets better.

一是供應鏈繼續執行，我們已經進行了一些重組，供應鏈肯定更敏捷。我們也使用大量數據和數據分析。我們也透過這次大流行學會如何繼續運作我們的供應鏈。因此，第一，您開始看到產量和效率提高的好處。隨著材料變得更好，您也可以進行更長的運行。

Secondly, the team has been very thoughtful in proactive cost management. To the extent where they saw there were places they could invest, they have. To the extent where we had lower volumes, we have managed to control cost. Third is we have had a relentless focus on working capital with inventory. And you're seeing that from a cash conversion basis. So I would just say it's continued, good, strong operating performance that you're starting to see.

其次，團隊在主動成本管理方面考慮得非常周到。只要他們看到有可以投資的地方，他們就已經投資了。在產量較低的情況下，我們成功地控制了成本。第三，我們持續關注營運資金和庫存。您可以從現金換算的基礎上看到這一點。所以我想說的是，您開始看到持續、良好、強勁的營運表現。

And then as you add on the benefits that you get from the restructuring and once the cost goes away, which we have said this program will take approximately 2 years to complete out, you can see the overall, long-term benefits from the margin rate that you're going to get from better operating performance as well as better restructuring benefits.

然後，當您添加從重組中獲得的收益時，一旦成本消失（我們說過該計劃將需要大約 2 年才能完成），您可以看到保證金率帶來的總體長期收益您將從更好的營運績效以及更好的重組收益中獲得收益。

At the same time, you've got to keep in mind that we are -- that the teams are going to continue to watch this in the fourth quarter. It's an uncertain macro. But I'm very confident with what we're doing that the execution is there. But there's always more we can do. And we'll keep trying to drive more and more execution as we go.

同時，你必須記住，我們——球隊將在第四季度繼續關注這一情況。這是一個不確定的宏觀。但我對我們正在做的事情非常有信心，執行力就在那裡。但我們總是能做更多的事情。我們將繼續努力推動越來越多的執行。

I appreciate that. And maybe kind of taking that and bridging to the Q4 guide, it seems to us by our math that you're kind of guiding underlying operating margins ex restructuring to something like 19%, down from the almost 22% this quarter. I know revenue is down, but it seems to suggest a very sharp decremental. Can you just maybe talk about what's causing that margin step-down? Because it feels like a lot of the improvements, whether it's supply chain or price cost, are sustainable.

我很感激。也許將這一點與第四季度指南聯繫起來，根據我們的數學計算，您似乎將重組前的基本營業利潤率引導至 19% 左右，低於本季度的近 22%。我知道收入下降了，但這似乎顯示收入下降非常劇烈。能否談談導致利潤率下降的原因？因為感覺很多改進，無論是供應鏈還是價格成本，都是可持續的。

Yes. Chris, again depends on the math. I'll just start with margin rates in total. When we started the year or we came into the year, we had said margin rates for the year are going to be around 19%. At the end of Q2, we said margin rates are going between 19.5% to 20% for the year. And now based on where we are with the midpoint of our guide, our margin rate will be approximately 20%.

是的。克里斯，再次取決於數學。我將從總保證金率開始。當我們年初或進入這一年時，我們曾說過今年的保證金率將在 19% 左右。在第二季末，我們表示今年的保證金率將在 19.5% 至 20% 之間。現在，根據我們指南的中點，我們的保證金率約為 20%。

So when you back into it, the fourth quarter is higher than the 19.5% that you have. It's somewhere in that 20.5% to 21% for the fourth quarter. And just to keep in mind, the reason you see this decremental. One is, of course, the restructuring is higher in Q4 versus Q3 plus it's higher of -- the midpoint is $95 million to $100 million of restructuring on a year-over-year basis if you're doing year-over-year decrementals.

因此，當你回頭看時，第四季的成長率高於 19.5%。第四季的成長率約為 20.5% 至 21%。請記住，您看到這種遞減的原因。當然，第四季的重組費用比第三季的重組費用更高，如果你進行年比遞減，那麼中點是年比重組費用為 9,500 萬至 1 億美元。

The second piece to keep in mind is, in general, revenue in 3M drops from Q3 to Q4. You have less billing days or less business days in Q4. That's why our revenue guide, which is going from $8 billion, it goes down to between $7.6 billion and $7.7 billion, which is basically saying the underlying macro trends are the same. It's just lower billing days or lower business days, which also puts an impact.

第二個要記住的事情是，總體而言，3M 的收入從第三季到第四季有所下降。第四季的結算天數或工作天數較少。這就是為什麼我們的收入指南從 80 億美元下降到 76 億美元到 77 億美元之間，這基本上表明基本的宏觀趨勢是相同的。只是計費天數或工作日減少，這也會產生影響。

If you look at the history of 3M, Chris, and you look at Q3 to Q4, you will always see a pretty sharp decline from Q3 to Q4 in margin rate. And that's mainly driven by just the lower volume because of the less business days that come into Q4. Hopefully, that answered your question.

克里斯，如果你看看 3M 的歷史，再看看第三季到第四季度，你總會看到第三季到第四季的保證金率急劇下降。這主要是由於第四季度的工作日減少而導致銷量下降。希望這回答了你的問題。

Our next question comes from the line of Andrew Kaplowitz with Citi.

我們的下一個問題來自花旗銀行的安德魯·卡普洛維茨（Andrew Kaplowitz）。

So Monish, I think at a conference a month ago, you had lowered your revenue guidance a bit and then you sort of report $8 billion -- I think you had $7.9 billion to $8 billion. So maybe you can talk about the cadence of revenues for the quarter. Did any of your businesses pick up in September here and October? Are you just being conservative at the time? And then how are you thinking about the impact of higher rates on your businesses?

所以莫尼什，我認為在一個月前的一次會議上，你稍微降低了你的收入指導，然後你報告了 80 億美元——我認為你有 79 億美元到 80 億美元。所以也許你可以談談本季的營收節奏。您的企業在 9 月和 10 月有復甦嗎？你當時只是保守嗎？那麼您如何看待更高的利率對您的業務的影響？

So I'll start by saying at that moment in time, what we saw is what we told you all, which we felt was in that $7.9 billion to $8 billion. There was uncertainty in electronics, consumer and China. I would say thanks to all the focus the teams have on taking care of customers, we were able to get to the high end of our range of $8 billion. I would say the same trends, Andy, pretty much stayed through the quarter. Electronics pretty much was where we thought it was going to be. China continued to remain weak and so did consumer retail.

因此，我首先要說的是，我們所看到的就是我們告訴你們所有人的，我們認為那是在 79 億至 80 億美元之間。電子、消費品和中國市場存在不確定性。我想說，由於團隊對客戶服務的高度重視，我們才能夠達到 80 億美元的上限。安迪，我想說，同樣的趨勢幾乎貫穿了整個季度。電子產品幾乎就是我們想像的那樣。中國持續保持疲軟，消費零售也是如此。

As Mike mentioned and so I have in my prepared remarks, we are seeing electronics stabilizing. We are watching for the fourth quarter what the holiday trends will bring for consumer retail. Back-to-school was softer than we expected. And then China, again I would say is we are -- it's pretty much the trends we expected in China. Overall, for the fourth quarter, you'll see us having revenue of $7.6 billion to $7.7 billion, which is again just driven by the fact you have less business days.

正如麥克和我在準備好的發言中提到的那樣，我們看到電子產品趨於穩定。我們正在關注第四季度的假日趨勢將為消費零售帶來什麼。返校的情況比我們預期的要溫和。然後是中國，我再次想說的是，這幾乎是我們在中國預期的趨勢。總體而言，第四季我們的營收為 76 億至 77 億美元，這又是由於工作日減少所致。

On the other side, if you look at margin and you look at what the teams have done, the teams have continued to be very good on an operating execution perspective. We have continued to drive proactive cost control. We have done that in Q3. We'll continue to do that in Q4. And as a result, we were able to beat the $2.25 to $2.40 I had said in that conference a few months ago. And then we have raised totally our guide from $8.60 to $9.10 to $8.95 to $9.15.

另一方面，如果你看看利潤率和團隊所做的事情，你會發現團隊在營運執行方面仍然非常出色。我們持續推動主動成本控制。我們在第三季就做到了這一點。我們將在第四季繼續這樣做。結果，我們能夠擊敗我幾個月前在該會議上所說的 2.25 至 2.40 美元。然後我們將指導價從 8.60 美元提高到 9.10 美元，再提高到 8.95 美元到 9.15 美元。

And then the other point, Andy, that's another bright spot is the cash conversion. The teams have done a marvelous job managing inventory, 130% free cash flow conversion in the third quarter, which has allowed us to raise our total year guide of free cash flow -- adjusted free cash flow conversion from -- to 100% to 110% from 90% to 100%. So overall, the team is focused on operating execution.

然後另一點，安迪，另一個亮點是現金轉換。這些團隊在庫存管理方面做得非常出色，第三季的自由現金流轉換率為130%，這使我們能夠將自由現金流的年度總指南（調整後的自由現金流轉換）提高到100% 至110 %從90%到100%。因此總體而言，團隊專注於營運執行。

Monish, if I could follow up on that, the cash conversion target raise, maybe talk about your efforts. I know you came in, you talked about improving digitization at the company. It seems like you're focused on digitization of inventories having an impact. So maybe you can talk about the confidence in generating higher cash conversion going forward, sort of duration of these improvements as you go forward in '24 and beyond.

莫尼什，如果我可以跟進現金轉換目標提高的問題，也許可以談談你的努力。我知道你進來了，你談到了改進公司的數位化。您似乎專注於產生影響的庫存數位化。因此，也許您可以談論未來產生更高現金轉換的信心，以及 24 年及以後這些改進的持續時間。

Yes. From the day of coming here, Andy, I've said working capital is a great opportunity for 3M. And through the pandemic, unfortunately, we had to build inventory levels and most companies did just to make sure we took care of our customers. And our first priority was always to take care of our customers. So we made sure we had enough inventory. As -- two things, as supply chains are stabilizing, number one, but more importantly, the execution that the teams are doing using data and data analytics and not -- and what I mean by that is not just going and using analytics but being able to visualize by looking at data, they are able to see where the inventory is better.

是的。安迪，從來到這裡的那天起，我就說過營運資金對 3M 來說是一個很好的機會。不幸的是，在疫情期間，我們必須提高庫存水平，而大多數公司這樣做只是為了確保我們照顧到我們的客戶。我們的首要任務始終是照顧我們的客戶。所以我們確保有足夠的庫存。作為——有兩件事，隨著供應鏈的穩定，第一，但更重要的是，團隊正在使用數據和數據分析而不是執行——我的意思是不僅僅是去使用分析，而是能夠透過查看數據進行視覺化，他們能夠看到哪裡的庫存更好。

They are able to get a better demand signal, which allows them to get a better manufacturing signal, which allows them to get a better supply signal to their suppliers. And then the third piece is with all the work that we have done through the restructuring, where we have got the supply chain streamlined and restructured so that it's more agile, all of that is playing itself out in the inventory that we are seeing. I would tell you, as I said in my prepared remarks, there's more to go here. There's more that we can keep driving in this space. And we are going to continue driving it because this is a great place where we can continue to generate very strong cash for 3M.

他們能夠獲得更好的需求訊號，這使他們能夠獲得更好的製造訊號，這使他們能夠向供應商獲得更好的供應訊號。第三部分是我們透過重組所做的所有工作，我們對供應鏈進行了精簡和重組，使其更加敏捷，所有這些都在我們所看到的庫存中發揮作用。我想告訴你們，正如我在準備好的演講中所說的那樣，這裡還有更多的事情要做。我們可以在這個領域繼續推動更多的事情。我們將繼續推動這一發展，因為這是一個我們可以繼續為 3M 創造大量現金的好地方。

Our next question comes from the line of Deane Dray with RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場部的迪恩德雷 (Deane Dray)。

What are you planning and assuming for the auto strike impact for 4Q?

您對第四季汽車罷工的影響有何計畫和假設？

Yes, Deane, so it's something we're watching very closely. We're -- as you know, we are -- stayed very close with the automotive OEMs, our key customers there. We are -- we haven't seen a significant impact on our business to date. And we continue to watch it closely. We're staying connected on what happens week-to-week and impacting our demand. But it's something that as part of -- important part of our global automotive business.

是的，迪恩，所以這是我們正在密切關注的事情。如您所知，我們與汽車原始設備製造商（我們在那裡的主要客戶）保持著非常密切的關係。迄今為止，我們尚未看到對我們業務的重大影響。我們將繼續密切關注。我們會密切注意每週發生的情況以及影響我們需求的情況。但這是我們全球汽車業務的重要組成部分。

Automotive, as we talked about in the quarter, had very good performance. We had 16% growth in the quarter, outgrowing build rates. And that's the broader core of our automotive business. Our auto electrification business is growing even faster. So it's an important part. It's had some impact but relatively small impact to this point. Again, we're watching it closely as we move ahead.

正如我們在本季談到的那樣，汽車業的表現非常好。本季我們的成長率為 16%，超出了建置率。這是我們汽車業務更廣泛的核心。我們的汽車電動化業務成長更快。所以這是一個重要的部分。它產生了一些影響，但到目前為止影響相對較小。同樣，我們在前進過程中密切關注它。

Got it. And then you mentioned earlier in the prepared remarks that back-to-school sales were weak. Can you quantify that just maybe year-over-year? And then how does this set up for holiday sales? With Consumer being weak, higher rates, what's the assumption there as well?

知道了。然後您之前在準備好的發言中提到返校銷售疲弱。您能逐年量化嗎？那麼這對假日銷售有何影響呢？由於消費者疲軟，利率上升，假設是什麼？

Yes, Deane, I probably would point you back at some of the data out there about year-over-year spend, back-to-school being down per student. There's a number of metrics out there. For us, our category broadly in Consumer is exposed to shifting discretionary spend. So that continues to be part of the Consumer story. So it wasn't a back-to-school story only. Back-to-school was muted. We didn't see the strong replenishment cycles that we would have seen in a stronger back-to-school. So I think we confirm the data that's out there.

是的，迪恩，我可能會向您指出一些關於逐年支出、每個學生返校支出下降的數據。有很多指標。對我們來說，我們的消費者類別廣泛面臨可自由支配支出的變化。因此，這仍然是消費者故事的一部分。所以這不僅僅是一個返校故事。回到學校，一片寂靜。我們沒有看到在更強勁的返校期間看到的強勁補貨週期。所以我認為我們確認了現有的數據。

And as we look ahead, we're -- I would say we're just looking at the uncertainty around what happens for the holiday season as well. And so we'll be monitoring that. And again, there's a broader story around consumer retail for us, the shift of spending from discretionary products into areas like food and, I would say, experienced kinds of spending. That trend has continued. So those are both underlying some of the performance that we saw in Consumer in the quarter and how we're thinking about it into Q4.

展望未來，我想說，我們只是專注於假期期間發生的事情的不確定性。因此我們將對此進行監控。再說一次，對我們來說，消費零售有一個更廣泛的故事，支出從非必需品轉向食品等領域，我想說的是，經歷過的各種支出。這種趨勢仍在持續。因此，這些都是我們在本季看到的消費者業績以及我們對第四季的看法的基礎。

Our next question comes from the line of Stephen Tusa with JPMorgan.

我們的下一個問題來自摩根大通的史蒂芬‧圖薩 (Stephen Tusa)。

Could you just give just an update on the total expected now inflation kind of carryover for the year? I know you mentioned it in the second quarter. Is that unchanged relative to what you had said before? I think it was like $150 million, maybe that changed?

您能否只提供今年預期通膨結轉總額的最新情況？我知道你在第二季有提到過。相對於您之前所說的，這沒有改變嗎？我想大概是 1.5 億美元，也許情況已經改變了？

No change, Steve.

沒有變化，史蒂夫。

Okay. And then I guess, low single digits for the year on pricing. So that's kind of like a mid-single-digit volume decline. That kind of feels already recessionary. Things seem like very stable for you guys revenue-wise. How much of that negative 5% do you think is a function of destocking versus trend line on demand? And then just one last one for the fourth quarter, how much of that sequential sales decline are you expecting from electronics seasonality?

好的。然後我猜，今年的定價會低個位數。所以這有點像是中個位數的銷售下降。那種感覺已經衰退了。從收入角度來看，你們的情況似乎非常穩定。您認為負 5% 有多少是去庫存與按需趨勢線的函數？然後是第四季度的最後一個，您預計電子產品季節性銷售額的連續下降有多少？

Yes. So Steve, maybe just thinking about the -- take the channel dynamic first, if you want. I would say when we look across the channel, where we're seeing some destocking is in industrial channels. And that's really -- I think we talked about that last quarter, too. As supply chain performance has improved and stabilized, we're seeing the industrial channels shorten up their replenishment cycles. And so they're managing their inventory maybe back to more normal levels prior to when we got hit with some of the supply chain disruption. So that's the one destocking effect.

是的。所以史蒂夫，也許只是想──如果你願意的話，先考慮通路動態。我想說，當我們縱觀整個通路時，我們會看到工業通路的庫存減少。這確實是——我想我們上個季度也討論過這個問題。隨著供應鏈績效的改善和穩定，我們看到工業通路縮短了補貨週期。因此，在我們遭受供應鏈中斷之前，他們的庫存管理可能會恢復到更正常的水平。這就是去庫存效應。

There is some destocking in Consumer that played out. The biggest part of that played out over the last year. Retailers focused pretty heavily on taking out inventory. That seems to have played out, although there's some of that with the soft demand that's continuing. So it's, I would say, the rest of it. And when I look across the channel, otherwise, it's pretty stable globally, maybe some adjustments in China in some of those same markets as we continue to see the macro -- looking for where the macro goes as we go forward.

消費者領域出現了一些去庫存的情況。其中最大的一部分是在去年發生的。零售商非常注重庫存的清理。這似乎已經發揮了作用，儘管其中一些需求持續疲軟。我想說的是，這就是剩下的部分。當我跨越管道看時，全球範圍內相當穩定，也許在中國的一些相同市場中會進行一些調整，因為我們繼續觀察宏觀——尋找宏觀在我們前進時的方向。

Looking as we move ahead, electronics, we talked about stabilizing. It's really -- Monish pointed out, part of it is the year-over-year comp. Remember last year, third and fourth quarter, we saw a decline in the electronics end markets. And we saw that in our businesses. So that's part of the view that Q4 stabilizes as year-over-year comp gets a little more -- changes a little bit as we lap some of those earlier declines from the first half. So I would say we're staying close to that holiday season and what happens. That's an important season for electronics. And we'll be watching that closely as we go into the quarter.

展望電子產業的發展，我們談到了穩定。莫尼什指出，這確實是其中的一部分是逐年比較。還記得去年第三、第四季，我們看到電子終端市場出現下滑。我們在我們的業務中看到了這一點。因此，我們認為第四季度會趨於穩定，因為年比比較會增加——隨著我們克服上半年的一些早期下降，情況會發生一些變化。所以我想說，我們正密切關注假期旺季以及即將發生的事情。對於電子產品來說，這是一個重要的季節。當我們進入本季度時，我們將密切關注這一情況。

Steve, I'll just add -- I just wanted to add one more. Disposable respirators is down $600 million on a year-over-year basis. That's approximately 200 basis points of growth.

史蒂夫，我補充一下——我只是想再補充一點。一次性呼吸器年減 6 億美元。這大約是 200 個基點的成長。

Right. And so sorry, are you assuming kind of normal sequential seasonal decline in electronics? Yes, you are?

正確的。抱歉，您是否假設電子產品出現正常的連續季節性下降？是的，你是？

Yes. Well, in the broader business, we have seasonality. Some of that is normal end market cycles. But it's also billing days as well. We have the holiday season. So we see -- sequentially from Q3 to Q4, we see that normal trend.

是的。嗯，在更廣泛的業務中，我們有季節性。其中一些是正常的終端市場週期。但這也是計費日。我們有假期。所以我們看到——從第三季度到第四季度，我們看到了正常的趨勢。

Right, which you've always had, of course?

對吧，當然，你一直都有這個？

Yes, right.

是的，沒錯。

Our next question comes from the line of Nigel Coe with Wolfe Research.

我們的下一個問題來自沃爾夫研究中心的奈傑爾·科 (Nigel Coe)。

So you can't have too many electronics questions. So what's got my attention in electronics is the sequential growth from 1Q through to 3Q has been quite sharp. I think 1Q was about 680, I think 3Q was about 750 or so. I mean, I know some of its seasonality, et cetera. But it must give you a lot of confidence that as we go into 2024 that at least in the first half of the year, we should be -- that should be a nice tailwind to the business. So any thoughts on that?

所以你不能有太多的電子問題。因此，電子產品領域引起我注意的是，從第一季到第三季的連續成長非常急劇。我認為1Q大約是680，我認為3Q大約是750左右。我的意思是，我知道它的一些季節性等等。但它一定會給你很大的信心，當我們進入 2024 年時，至少在今年上半年，我們應該——這應該成為業務的一個很好的推動力。那麼對此有什麼想法嗎？

Well, Nigel, I would say it's going to depend on the outlook as we get to 2024 for electronics and those key end markets that you're talking about it. And we've seen -- maybe that's part of the stabilization that we're seeing is the quarterly trend in electronics against that year-over-year comparable is stabilizing in the second half. What will decide the performance in first quarter or first half of next year will really depend on the demand that we see. And some of that will come through the holiday season. But we'll be -- we'll come back at our Q4 earnings call and update on how we're looking at the first half of next year.

好吧，奈傑爾，我想說這將取決於 2024 年電子產品和您所談論的那些關鍵終端市場的前景。我們已經看到——也許這是我們看到的穩定的一部分，電子產品的季度趨勢與去年同期相比在下半年趨於穩定。決定明年第一季或上半年業績的因素實際上取決於我們看到的需求。其中一些將在假期期間實現。但我們會在第四季的財報電話會議上回來，並更新我們對明年上半年的看法。

Okay, that's great. And then I don't like to ask ISM macro questions necessarily. But you are, based on your cycle, very channel-centric. The flash PMI for the U.S. was at 50 in October. Are you seeing more stabilization or maybe some sequential improvement in the U.S. relative to Europe and China?

好的，太好了。然後我不一定喜歡問 ISM 宏觀問題。但根據您的週期，您非常以管道為中心。美國 10 月 PMI 初值為 50。相對於歐洲和中國，您是否看到美國更加穩定或可能有所改善？

Yes, I think Monish called out that performance in the U.S. was up slightly and that, I would say, mixed performance in our industrial businesses in the U.S. reflecting some areas of strength but also some, I would say, caution and uncertainty around the broader economy. So I think we're seeing the U.S. performing a little better, up slightly.

是的，我認為莫尼什指出，美國的業績略有上升，我想說的是，我們在美國的工業企業的業績好壞參半，反映出一些優勢領域，但我想說，也反映出更廣泛領域的謹慎和不確定性。經濟。所以我認為我們看到美國的表現稍好一些，略有上升。

And that's -- I would say that's in spite of the challenges that we've been talking about in consumer retail. So Safety and Industrial posted, I think, mid-single-digit growth in the U.S. in the quarter. So that's a good reflection on what we're seeing more broadly. And maybe that PMI is aligned to that. That PMI represents kind of a middle kind of expectation from the purchasing managers.

我想說的是，儘管我們一直在談論消費零售業面臨的挑戰。因此，我認為，安全與工業部門在本季美國市場實現了中個位數成長。因此，這很好地反映了我們所看到的更廣泛的情況。也許 PMI 與此相符。該 PMI 代表了採購經理的中等預期。

Just only other thing, Nigel, I will add to Mike's comments is just in certain pockets, we are seeing customers managing inventory channel. And part of it is supply chains are definitely far more stable, so customers have lower lead times, so they're managing that in pockets.

只是另一件事，奈傑爾，我要補充麥克的評論只是在某些口袋裡，我們看到客戶管理庫存管道。部分原因是供應鏈肯定更加穩定，因此客戶的交貨時間較短，因此他們可以在口袋裡進行管理。

Our last question comes from the line of Julian Mitchell with Barclays.

我們的最後一個問題來自巴克萊銀行的朱利安·米切爾。

One quick question, I just wanted to circle back on your sort of pricing outlook as you see it. Because volumes have been soft for some time. Headline inflation in theory is easing. And traditionally, you do have price pressure in areas like electronics just through the nature of the industry.

一個簡短的問題，我只是想回顧一下您所看到的定價前景。因為成交量已經疲軟一段時間了。理論上總體通膨正在放緩。傳統上，由於行業的本質，在電子產品等領域確實面臨價格壓力。

So I just wondered sort of what the comfort level was as you look into Q4 and early next year that you can hold price kind of firm-wide at least flat at 3M and whether there's been any change how you sort of go to market to push price, just given the experience of inflation in the last couple of years.

因此，我只是想知道，當您考慮第四季度和明年初時，您可以將整個公司的價格至少保持在 3M 持平，以及您進入市場推動的方式是否有任何變化價格，只是考慮到過去幾年的通貨膨脹經歷。

Yes, Julian, I would just say the same thing that I said with another question before. The way -- I would just say long term, 3M has always been able to add value to its customers. And that is reflected in the pricing that it charges. We look at this not based on just a formula, but we look at it market-by-market, look at our competitive position in market-by-market, look at the value we add. And that's how we come up with our pricing that we go with.

是的，朱利安，我只想說我之前在另一個問題中說過的同樣的話。我只想說，從長遠來看，3M 始終能夠為其客戶增加價值。這反映在它的定價中。我們不僅僅根據一個公式來看待這個問題，而是逐個市場地看待它，逐個市場地審視我們的競爭地位，審視我們所增加的價值。這就是我們制定定價的方式。

And I would say based on the innovation and the value that we add to our customers, long term, I don't see that changing. In the short run, as you have seen, the company has been able to manage inflation through price. And if needed, we'll continue doing that. But overall, right now, the teams are quite focused on delivering the fourth quarter. And then we'll see where long term goes, this topic. It will be a function of demand, a function of inflation. So that's the way I look at it.

我想說，基於我們為客戶增加的創新和價值，從長遠來看，我認為這種情況不會改變。從短期來看，正如您所看到的，該公司已經能夠透過價格來管理通貨膨脹。如果需要，我們將繼續這樣做。但總的來說，目前各團隊都非常專注於第四季的表現。然後我們將看看這個主題的長期發展方向。它將是需求的函數，通貨膨脹的函數。這就是我的看法。

Understood. And then just to focus on a couple of markets within Safety and Industrial that, I guess, had been pretty strong. And most of the sort of rhetoric is fairly strong around them. But organically, you had a little bit of pressure at least or less growth in Q3. And that's the electrical markets and also automotive aftermarket. So just wondered, any color around those in terms of is it just kind of accelerated destocking, distributors just holding off on orders for some reason? Any color at all on auto aftermarket and electrical, please?

明白了。然後重點關注安全和工業領域的幾個市場，我認為這些市場相當強大。大多數此類言論都相當強烈。但從有機角度來看，第三季的成長至少有一點壓力或更少。這就是電氣市場和汽車售後市場。所以我想知道，圍繞這些的任何顏色是否只是加速去庫存，分銷商只是出於某種原因推遲訂單？請問汽車售後市場和電氣有什麼顏色嗎？

Yes, Julian, I wouldn't -- we saw a little bit of destocking in electrical markets. That was one of the areas in industrial that we saw that impacting. And I would say our automotive aftermarket probably saw a little bit of adjustments, given what we talked about and Monish highlighted that improving supply chains with distribution and the channel are managing their inventories, their safety stocks, so more in line with stable supply chain.

是的，朱利安，我不會——我們看到電氣市場的庫存減少。這是我們看到影響的工業領域之一。我想說，考慮到我們所討論的內容，我們的汽車售後市場可能會發生一些調整，莫尼什強調，透過分銷和通路改善供應鏈正在管理他們的庫存、安全庫存，因此更符合穩定的供應鏈。

So I think that's part of it. Those have both been seeing good market performance as we've gone through the year. I think again we're watching closely the trends as we go into the end of the year. But really, it's -- I think reflects on the -- a little bit of destocking and also the end market demand.

所以我認為這是其中的一部分。在我們這一年裡，這些公司都取得了良好的市場表現。我認為，隨著年底的到來，我們正在密切關注趨勢。但實際上，我認為這反映了一點點去庫存以及終端市場需求。

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 comments.

我們電話會議的問答部分到此結束。我現在將把電話轉回邁克·羅曼（Mike Roman），徵求一些結束語。

To wrap up, we continue to execute our strategies, delivering results in a challenging environment while positioning 3M for the future, prioritizing high-growth markets and geographies where 3M innovation can deliver the most impact. Thank you for joining us.

總而言之，我們繼續執行我們的策略，在充滿挑戰的環境中取得成果，同時為 3M 的未來定位，優先考慮 3M 創新能夠產生最大影響的高成長市場和地區。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 we ask that you please disconnect your lines.

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，並請您斷開線路。