Q: What is 3M (MMM) Q2 2024 Earnings Call Transcript Summary?
**3M (MMM) Q2 2024 Earnings Call Summary**
**Here are the specific viewpoints from the earnings call:**
**Bullish Points:**
1. Reported non-GAAP earnings per share of $1.93, up nearly 40% with 1% organic revenue growth.
2. Adjusted free cash flow was $1.2 billion with a conversion of 109%.
3. Operating margins expanded by 440 basis points year on year.
4. Strong cash generation and a solid balance sheet with low leverage ratios.
5. Incrementally more positive view from the rating agencies.
6. Repurchased about $400 million in stock in the second quarter with capacity for more in the second half and next year.
7. Lower year-on-year restructuring charges were a benefit of 270 basis points to margins and $0.23 earnings to earnings.
8. Safety and Industrial business posted sales of $2.8 billion, up 1.1% organically.
9. Transportation and Electronics posted adjusted sales of $1.9 billion, up 3.3% organically.
10. Raising the bottom end of full-year adjusted earnings guidance by $20 to a range of $7 to $7.30.
**Bearish Points:**
1. Organic growth has been below market indices and peers over several years and up only about 1% year to date.
2. Decline in R&D investment over the past five years, impacting new product development.
3. Raw material waste is running close to 5% of cost of goods sold.
4. Service levels are only in the mid-80s with too much inventory at about $4 billion in 102 days at the end of Q2.
5. Change in timing negatively impacted operating margins by 200 basis points and earnings by $0.18 per share versus last year's second quarter.
6. Foreign currency was a negative $0.04 per share impact as a result of the stronger U.S. dollar.
7. Corporate and unallocated sales were $86 million with a $2 million adjusted operating loss in Q2.
8. Year to date, corporate and unallocated sales were $112 million with an adjusted operating loss of $73 million.
9. Incurred a non-cash charge of approximately $800 million related to a $2.5 billion pension risk transfer.
10. Consumer business posted second-quarter sales of $1.3 billion, with organic sales declining 1.4% year on year.
For more information about 3M's earnings call, you can read the relevant news: 3M (MMM) Q2 2024 Earnings Call Transcript
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