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Solventum Reports Third Quarter 2024 Financial Results and Raises Full-Year Guidance

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Reported sales increased 0.4% to $2.082 billion; organic sales increased 0.3%GAAP Earnings Per Share (EPS) of $0.70; adjusted EPS1 of $1.64Generated $169 million in cash from operations; free cash flow1 of $76 millionRaises full-year 2024 organic sales growth, adjusted EPS and free cash flow guidance

ST. PAUL, Minn., Nov. 7, 2024 /PRNewswire/ — Solventum (NYSE: SOLV) today reported financial results for the third quarter ended September 30, 2024.

“We have now delivered consecutive quarters of outperformance against our expectations, and based on these results, we are again raising our full-year guidance,” said Bryan Hanson, chief executive officer, Solventum. “It has been an exciting start, and we are confident that our three-phased approach will drive long-term growth and significant value creation.”

Third Quarter 2024 Financial Results

3 months ended September 30, 2024

(Millions of dollars, except per share amounts)

GAAP

non-GAAP1

Sales

$2,082

$2,082

Operating income

$275

$475

Operating income margin

13.2 %

22.8 %

Earnings per share (EPS)

$0.70

$1.64

Cash from operations/free cash flow1

$169

$76

Reported and organic sales growth reflect the expected normalization of pricing. By segment, organic sales growth was primarily driven by the MedSurg and Health Information Systems segments, partially offset by the Dental Solutions and Purification and Filtration segments. 

GAAP and adjusted operating income margin declined due to lower gross margins, including the impact from the 3M supply agreement mark-up, and an increase in operating expenses related to public company stand-up costs and growth investments.

1 Represents non-GAAP financial measure; see the “Non-GAAP Financial Measures” section for applicable information.

 

Segment and Total Company Net Sales for Third Quarter*

Three months ended
September 30

Increase/(Decrease)

(Dollars in millions)

2024

2023

Total

Currency
Impact

Other2

Organic

MedSurg

$          1,182

$          1,180

0.1 %

(0.1) %

(0.7) %

1.0 %

Dental Solutions

313

331

(5.2)

(1.2)

(3.9)

Health Information Systems

326

321

1.5

0.1

1.5

Purification and Filtration

238

242

(1.5)

(1.1)

(0.3)

Corporate and Unallocated3

23

NM

NM

NM

NM

Total Company

$          2,082

$          2,074

0.4 %

(0.1) %

0.2 %

0.3 %

*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

2Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Divestiture impacts include lost sales from the company’s dental anesthetics business that was sold in August 2023 and certain health care businesses retained by 3M India in connection with the spin-off.

3Corporate and unallocated includes sales related to product supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off.

Full-Year 2024 Guidance
Solventum is raising its full-year 2024 guidance

Organic sales growth to the upper half of 0% to +1.0% (previously 0% to +1.0%)Adjusted EPS of $6.50 to $6.65 (previously $6.30 to $6.50)Free cash flow of $750M to $850M (previously $700M to $800M)

Organic sales, adjusted EPS and free cash flow amounts included in Solventum’s full-year guidance and additional considerations below are non-GAAP financial measures. Solventum does not provide reconciliations of the forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items, such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items. 

Solventum’s full-year 2024 guidance is based on Q1 2024 as a carve-out plus the remainder of the year as a stand-alone company starting April 1, 2024.

See the “Non-GAAP Financial Measures” section for explanations of our non-GAAP financial measures.

Earnings Conference Call
Solventum will host a conference call today, November 7, at 4:30 p.m. Eastern Time to discuss its third quarter financial results and provide an update on its business. The conference call can be accessed via audio webcast at investors.solventum.com or by dialing (800) 715-9871 within the U.S. or +1 (646) 307-1963 for international callers, using the conference ID 6342275.

A replay of the webcast, along with the earnings press release, slides highlighting the results, and supplemental financial disclosures, will also be available at the same link on the Investor Relations section of the company’s website.

Forward-Looking Statement
This news release contains forward-looking information about Solventum’s financial results and estimates and business prospects that involve substantial risks and uncertainties. In particular, statements regarding the future performance of Solventum, including guidance for 2024, are forward-looking statements. You can identify these statements by the use of words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,” “would,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international, trade and geopolitical conditions, natural disasters, war, public health crises, and other events beyond Solventum’s control; (2) operational execution risks; (3) damage to Solventum’s reputation or its brands; (4) risks from acquisitions, strategic alliances, divestitures and other strategic events; (5) Solventum’s business dealings involving third-party partners in various markets; (6) Solventum’s ability to access the capital and credit markets and changes in Solventum’s credit ratings; (7) exposure to interest rate and currency risks; (8) the highly competitive environment in which Solventum operates and consolidation in the healthcare industry; (9) reduction in customers’ research budgets or government funding; (10) the timing and market acceptance of Solventum’s new product and service offerings; (11) ongoing working relationships with certain key healthcare professionals; (12) changes in reimbursement practices of governments or private payers or other cost containment measures; (13) Solventum’s ability to obtain components or raw materials supplied by third parties and other manufacturing and related supply chain difficulties, interruptions, and disruptive factors; (14) legal and regulatory proceedings and legal compliance risks (including third-party risks) with regards to antitrust, FCPA and other anti-bribery laws, environmental laws, anti-kickback and false claims laws, privacy laws, product liability claims, tax laws, and other laws and regulations in the United States and other countries in which Solventum operates; (15) potential liabilities related to per-and polyfluoroalkyl substances; (16) risks related to the highly regulated environment in which Solventum operates; (17) climate change and measures to address climate change; (18) security breaches and other disruptions to information technology infrastructure; (19) Solventum’s failure to obtain, maintain, protect, or effectively enforce its intellectual property rights; (20) pension and postretirement obligation liabilities; (21) any events that adversely affect the sale or profitability of one of Solventum’s key products or the revenue delivered from sales to its key customers; (22) any failure by 3M Company (“3M“) to perform any of its obligations under the various separation agreements entered into in connection with the separation of Solventum from 3M and distribution (the “Spin-Off”); (23) any failure to realize the expected benefits of the Spin-Off; (24) Solventum’s ability to execute its turnaround strategy; (25) a determination by the IRS or other tax authorities that the Separation or certain related transactions should be treated as taxable transactions; (26) indebtedness incurred in the financing transactions undertaken in connection with the Separation and risks associated with additional indebtedness; (27) the risk that incremental costs of operating on a standalone basis (including the loss of synergies), costs of restructuring transactions and other costs incurred in connection with the Spin-Off will exceed Solventum’s estimates; and (28) the impact of the Spin-Off on Solventum’s businesses and the risk that the separation from 3M may be more difficult, time-consuming or costly than expected, including the impact on Solventum’s resources, systems, procedures and controls, diversion of management’s attention and the impact on relationships with customers, suppliers, employees and other business counterparties.

Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located under “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Solventum’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Solventum assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.

Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S. GAAP, Solventum also provides non-GAAP measures that we use, and plan to continue using, when monitoring and evaluating operating performance and measuring cash available to invest in our business. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP financial measures are supplemental measures of our performance and our liquidity that we believe help investors understand our underlying business performance and Solventum uses these measures as an indication of the strength of Solventum and its ability to generate cash.

Solventum calculates forward-looking non-GAAP financial measures, including organic sales growth, adjusted operating income, adjusted operating income margin, adjusted effective tax rate, adjusted earnings per share, and free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. Solventum does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items. The timing and amounts of these items are uncertain and could have a material impact on Solventum’s results in accordance with GAAP. 

The Q3 2024 financial statements and financial information, including reconciliations of non-GAAP financial measures, are available on Solventum’s website: investors.solventum.com.

About Solventum
At Solventum, we enable better, smarter, safer healthcare to improve lives. As a new company with a long legacy of creating breakthrough solutions for our customers’ toughest challenges, we pioneer game-changing innovations at the intersection of health, material and data science that change patients’ lives for the better — while empowering healthcare professionals to perform at their best. See how at Solventum.com

Solventum Corporation

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME

(Dollars in millions, except per-share amounts)

(Unaudited)

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Net sales of product

$       1,608

$       1,593

$       4,766

$       4,750

Net sales of software and rentals

474

481

1,413

1,411

Total net sales

2,082

2,074

6,179

6,161

Cost of product

793

748

2,341

2,262

Cost of software and rentals

124

117

364

364

Gross profit

1,165

1,209

3,474

3,535

Selling, general and administrative expenses

701

525

1,998

1,681

Research and development expenses

189

180

576

568

Total operating expenses

1,807

1,570

5,279

4,875

Operating income

275

504

900

1,286

Interest expense, net

107

260

Other expense (income), net

1

4

48

10

Income before income taxes

167

500

592

1,276

Provision for income taxes

45

40

144

202

Net Income

$          122

$          460

$          448

$       1,074

Earnings per share:

Basic earnings per share

$         0.70

$         2.66

$         2.59

$         6.22

Diluted earnings per share

0.70

2.66

2.58

6.22

Weighted-average number of share outstanding:

Basic

173.4

172.7

173.1

172.7

Diluted

173.9

172.7

173.4

172.7

 

Solventum Corporation

CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS

(Dollars in millions)

(Unaudited)

September 30,

December 31,

(Millions)

2024

2023

Assets

Current assets

Cash and cash equivalents

$            772

$            194

Accounts receivable — net of allowances of $86 and $82

1,105

1,313

Due from related parties

222

Inventories

Finished goods

529

453

Work in process

181

171

Raw materials and supplies

243

233

Total inventories

953

857

Other current assets

302

155

Total current assets

3,354

2,519

Property, plant and equipment — net

1,599

1,457

Goodwill

6,592

6,535

Intangible assets — net

2,651

2,902

Other assets

549

530

Total assets

$        14,745

$        13,943

Liabilities

Current liabilities

Short-term borrowings and current portion of long-term debt

$            300

$               —

Accounts payable

560

477

Due to related parties

450

Unearned revenue

563

574

Other current liabilities

1,031

677

Total current liabilities

2,904

1,728

Long-term debt

7,809

Pension and postretirement benefits

321

166

Deferred income taxes

214

231

Other liabilities

305

152

Total liabilities

$        11,553

$          2,277

Equity

Common stock par value, $0.01 par value, 750,000,000 shares authorized

$                2

$               —

Shares issued and outstanding – September 30, 2024: 172,754,070

Shares issued and outstanding – December 31, 2023: 0

Additional paid-in capital

3,744

Retained earnings

211

Net parent investment

12,003

Accumulated other comprehensive income (loss)

(765)

(337)

Total equity

3,192

11,666

Total liabilities and equity

$        14,745

$        13,943

 

Solventum Corporation

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

(Dollars in millions)

(Unaudited)

Nine months ended September 30,

(Millions)

2024

2023

Cash Flows from Operating Activities

Net income

$            448

$          1,074

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization

405

422

Postretirement benefit plan expense

30

31

Stock-based compensation expense

87

32

Gain on business divestitures

(56)

Deferred income taxes

(93)

(99)

Changes in assets and liabilities

Accounts receivable

14

(24)

Due from related parties

200

Inventories

(99)

(7)

Accounts payable

200

48

Due to related parties

(393)

All other operating activities

167

(53)

Net cash provided by operating activities

966

1,368

Cash Flows from Investing Activities

Purchases of property, plant and equipment

(253)

(202)

Proceeds from sale of business

60

Net cash used in investing activities

(253)

(142)

Cash Flows from Financing Activities

Repayment of debt

(200)

Net transfers to 3M

(8,247)

(1,248)

Proceeds from long-term debt, net of issuance costs

8,303

Other — net

8

2

Net cash used in financing activities

(136)

(1,246)

Effect of exchange rate changes on cash and cash equivalents

1

1

Net increase (decrease) in cash and cash equivalents

578

(19)

Cash and cash equivalents at beginning of year

194

61

Cash and cash equivalents at end of period

$            772

$              42

 

Solventum Corporation

SALES CHANGE ANALYSIS4

(Dollars in millions)

(Unaudited)

Segment and Total Company Net Sales for the First Nine Months*

Nine months ended
September 30,

Increase/(Decrease)

(Dollars in millions)

2024

2023

Total

Currency
Impact

Other

Organic

MedSurg

$         3,463

$        3,464

— %

(0.6) %

(0.5) %

1.1 %

Dental Solutions

979

1,023

(4.3)

(0.6)

(1.9)

(1.8)

Health Information Systems

971

953

1.8

1.8

Purification and Filtration

721

721

0.1

(0.7)

(0.9)

1.7

Corporate and Unallocated5

45

NM

NM

NM

NM

Total Company

$         6,179

$        6,161

0.3 %

(0.5) %

— %

0.8 %

*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

4Total sales change is calculated based on reported sales results. The components of sales change include organic local-currency sales, translation, and other. Organic local-currency sales include both organic volume impacts (which excludes acquisition and divestiture impacts, in addition to supply agreement and impacts) and selling price changes. Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Divestiture impacts include lost sales from the company’s dental anesthetics business that was sold in August 2023 and certain health care businesses retained by 3M India in connection with the spin-off.

5Corporate and Unallocated also includes sales and cost of sales related to products supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off.

Solventum Corporation and Subsidiaries
BUSINESS SEGMENTS
(Unaudited)

Operating segments include components of an enterprise where separate financial information is available that is evaluated regularly by the company’s Chief Operating Decision Maker (“CODM”) for the purpose of assessing performance and allocating resources. The company’s CODM is its Chief Executive Officer. The company’s operating activities are managed through four operating segments: MedSurg, Dental Solutions, Health Information Systems, and Purification and Filtration. There have been no changes to the composition of the segments or to financial information reported within each of the business segments. These segments have been identified based on the nature of the products sold and how the company manages its operations. Transactions among reportable segments are recorded at cost. No operating segments have been aggregated to form reportable segments.

Corporate and Unallocated includes amortization of acquired intangible assets, restructuring and related charges, benefits or costs related to capitalized manufacturing variances, spin-off and separation-related costs and other net costs that the company chose not to allocate directly to its business segments. Spin-off and separation-related costs include any costs incurred as part of our separation from 3M and costs to setup operations as a standalone company, including system implementations, manufacturing relocation, legal entity separation, certain equity awards granted as part of the spin-off, profit mark-ups on transition service arrangements with 3M and other one-time costs. 

Corporate and Unallocated also includes sales and cost of sales related to products supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off. Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. Business segment operating income is reconciled to total operating income below:

BUSINESS SEGMENT INFORMATION

Three months ended September 30, 2024

Three months ended September 30, 2023

(Dollars in millions)

Net Sales

Operating
Income

Operating
Margin %

Net Sales

Operating
Income

Operating
Margin %

MedSurg

$      1,182

$         243

20.6 %

$      1,180

$         307

26.0 %

Dental Solutions

313

72

23.0

331

114

34.4

Health Information Systems

326

105

32.2

321

114

35.5

Purification and Filtration

238

20

8.4

242

48

19.8

Total business segment operating income

$         440

$         583

Corporate and Unallocated:

Amortization expense

$         (88)

$         (92)

Other Corporate and Unallocated

(77)

13

Total Corporate and Unallocated

23

(165)

NM

(79)

NM

Total Company

$      2,082

$         275

13.2 %

$      2,074

$         504

24.3 %

BUSINESS SEGMENT INFORMATION

Nine months ended September 30, 2024

Nine months ended September 30, 2023

(Dollars in millions)

Net Sales

Operating
Income

Operating
Margin %

Net Sales

Operating
Income

Operating
Margin %

MedSurg

$      3,463

$         678

19.6 %

$      3,464

$         829

23.9 %

Dental Solutions

979

272

27.8

1,023

349

34.1

Health Information Systems

971

317

32.6

953

304

31.9

Purification and Filtration

721

78

10.8

721

134

18.6

Total business segment operating income

$      1,345

$      1,616

Corporate and Unallocated:

Amortization expense

$       (261)

$       (276)

Other Corporate and Unallocated

(184)

(54)

Total Corporate and Unallocated

45

(445)

NM

(330)

NM

Total Company

$      6,179

$         900

14.6 %

$      6,161

$      1,286

20.9 %

 

Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(Unaudited)

In addition to reporting financial results in accordance with U.S. GAAP, the company use non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. These include (1) Adjusted operating income, and adjusted operating income margin, (2) Adjusted earnings per share, and (3) Free cash flow. Management believes that these non-GAAP financial measures are useful in evaluating current performance and focusing management on our underlying operational results.

There are limitations to the use of the non-GAAP financial measures presented in this information statement. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. Management cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP.

The tables below reconcile our non-GAAP financial measures to the nearest financial measure that is in accordance with U.S. GAAP for the periods presented.

Adjusted Operating Income, Adjusted Operating Income Margin and Adjusted Earnings Per Share (Non-GAAP measures)

Adjusted operating income and adjusted operating income margin are not defined under U.S. GAAP. Therefore, they should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted operating income as operating income excluding the effects of amortization, restructuring costs, and spin-off and separation-related costs. Adjusted operating income margin is adjusted operating income divided by the U.S GAAP measure total net sales for the same period. The company believes adjusted operating income and adjusted operating income margin provide investors with visibility into the company’s unleveraged, pre-tax operating results and reflects underlying financial performance. However, adjusted operating income should not be construed as inferring that the company’s future results will be unaffected by the items for which the measure adjusts.

Adjusted earnings per share is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted earnings per share as net income excluding the after-tax effects of amortization, restructuring costs, spin-off and separation-related costs, and legal entity restructuring costs. The company believes adjusted earnings per share provides investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how the company evaluate the business. However, adjusted earnings per share should not be construed as inferring that the company’s future results will be unaffected by the items for which the measure adjusts.

Solventum Corporation

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES – (CONTINUED)*

(Unaudited)

Three months ended September 30, 2024

(Dollars in millions, except per share amounts)

Net sales

Cost of
Sales6

Gross
Margin %

Other
Operating
Expenses7

Operating
Income

Operating
Income
Margin %

Non-
Operating
Expense
(Income),
net8

Income
Before
Income
Taxes

Net Income
Attributable
to
Solventum

Diluted
EPS

Effective
Tax Rate

GAAP

$ 2,082

$    917

56.0 %

$  1,807

$    275

13.2 %

$    108

$    167

$      122

$   0.70

26.9 %

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

(88)

88

4.2

88

73

0.42

Restructuring costs (a)

(1)

(1)

1

0.1

1

1

0.01

Spin-off and separation-related costs (b)

(27)

1.3

(111)

111

5.3

111

85

0.49

Legal entity restructuring (c)

4

0.02

Non-GAAP

$ 2,082

$    889

57.3 %

$  1,607

$    475

22.8 %

$    108

$    367

$      285

$   1.64

22.3 %

Three months ended September 30, 2023

(Dollars in millions, except per share amounts)

Net sales

Cost of
Sales6

Gross
Margin %

Other
Operating
Expenses7

Operating
Income

Operating
Income
Margin %

Non-
Operating
Expense
(Income),
net8

Income
Before
Income
Taxes

Net Income
Attributable
to
Solventum

Diluted
EPS

Effective
Tax Rate

GAAP

$ 2,074

$    865

58.3 %

$  1,570

$    504

24.3 %

$        4

$    500

$      460

$   2.66

8.0 %

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

(92)

92

4.4

92

77

0.45

Restructuring costs (a)

(1)

1

(1)

(1)

(1)

(0.01)

Spin-off and separation-related costs (b)

Gain on business divestitures

56

(56)

(2.7)

(56)

(40)

(0.23)

Non-GAAP

$ 2,074

$    864

58.3 %

$  1,535

$    539

26.0 %

$        4

$    535

$      496

$   2.87

7.3 %

_________

*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

(a)    Consists of severance associated with restructuring programs.

(b)    Consists of costs specifically incurred in connection with the separation from 3M.

(c)    Consists of tax impacts for legal entity restructuring in connection with the separation from 3M.

6Cost of sales is the combination of cost of product and cost of software and rental line items from the Condensed Consolidated and Combined Statements of Income and represents the total company cost of sales.

7Other operating expenses is a combination of selling, general and administrative expenses and research and development expenses from the Condensed Consolidated and Combined Statements of Income and represents the total company other operating expenses.

8 Non-operating expense (income), net is the combination of interest expense, net and other expense (income), net line items from the Condensed Consolidated and Combined Statements of Income and represents the total company non-operating expense.

 

Solventum Corporation

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES – (CONTINUED)*

(Unaudited)

Nine months ended September 30, 2024

(Dollars in millions, except per share amounts)

Net sales

Cost of
Sales6

Gross
Margin %

Other
Operating
Expenses7

Operating
Income

Operating
Income
Margin %

Non-
Operating
Expense
(Income),
net8

Income
Before
Income
Taxes

Net Income
Attributable
to
Solventum

Diluted
EPS

Effective
Tax Rate

GAAP

$ 6,179

$ 2,705

56.2 %

$  5,279

$    900

14.6 %

$    308

$    592

$      448

$   2.58

24.3 %

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

(261)

261

4.2

261

218

1.26

Restructuring costs (a)

(5)

0.1

(13)

13

0.2

13

9

0.06

Spin-off and separation-related costs (b)

(48)

0.8

(215)

215

3.5

(38)

253

205

1.18

Legal entity restructuring (c)

35

0.20

Non-GAAP

$ 6,179

$ 2,652

57.1 %

$  4,790

$ 1,389

22.5 %

$    270

$ 1,119

$      915

$   5.28

18.2 %

Nine months ended September 30, 2023

(Dollars in millions, except per share amounts)

Net sales

Cost of
Sales6

Gross
Margin %

Other
Operating
Expenses7

Operating
Income

Operating
Income
Margin %

Non-
Operating
Expense
(Income),
net8

Income
Before
Income
Taxes

Net Income
Attributable
to
Solventum

Diluted
EPS

Effective
Tax Rate

GAAP

$ 6,161

$ 2,626

57.4 %

$  4,875

$ 1,286

20.9 %

$      10

$ 1,276

$   1,074

$   6.22

15.8 %

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

(276)

276

4.5

276

231

1.33

Restructuring costs (a)

(12)

0.2

(38)

38

0.6

38

31

0.18

Spin-off and separation-related costs (b)

Gain on business divestitures

56

(56)

(0.9)

(56)

(40)

(0.23)

Non-GAAP

$ 6,161

$ 2,614

57.6 %

$  4,617

$ 1,544

25.1 %

$      10

$ 1,534

$   1,296

$   7.50

15.5 %

__________

*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

(a)    Consists of severance associated with restructuring programs.

(b)    Consists of costs specifically incurred in connection with the separation from 3M.

(c)    Consists of tax impacts for legal entity restructuring in connection with the separation from 3M.

6Cost of sales is the combination of cost of product and cost of software and rental line items from the Condensed Consolidated and Combined Statements of Income and represents the total company cost of sales.

7Other operating expenses is a combination of selling, general and administrative expenses and research and development expenses from the Condensed Consolidated and Combined Statements of Income and represents the total company other operating expenses.

8 Non-operating expense (income), net is the combination of interest expense, net and other expense (income), net line items from the Condensed Consolidated and Combined Statements of Income and represents the total company non-operating expense.

Free Cash Flow (non-GAAP measure):

Free cash flow is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The company believes free cash flow is meaningful to investors as it is a useful measure of liquidity and the company uses these measures as an indication of the strength of the company and its ability to generate cash. Free cash flow varies across quarters throughout the year. Below find a recap of free cash flow.

(Dollars in millions)

Three months ended
September 30,

Nine months ended
September 30,

Major GAAP Cash Flow Categories

2024

2023

2024

2023

Net cash provided by operating activities

$           169

$           493

$           966

$         1,368

Net cash used in investing activities

(93)

(6)

(253)

(142)

Net cash used in financing activities

(202)

(485)

(136)

(1,246)

Free Cash Flow (non-GAAP measure)

Net cash provided by operating activities

$           169

$           493

$           966

$         1,368

Purchases of property, plant and equipment

(93)

(66)

(253)

(202)

Free cash flow*

76

427

713

1,166

__________________

*         Non-GAAP financial measure.

 

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Max Stock Limited Announces Change in Shares Held by an Interested Party

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CAESAREA, Israel, Nov. 24, 2024 /PRNewswire/ — Max Stock Limited (TASE: MAXO(; )the “Company”, “Max Stock“) today announced that on November 20th, 2024, Phoenix Financial Ltd. and Phoenix Investment House Ltd. (“Phoenix reporting group”), including their respective nostro account, provident funds and provident fund management companies, as well as mutual fund management companies and market maker sub entities, informed the Company that they had sold shares of the Company thereby lowering their joint holdings to 4.8% of the Company’s issued capital (4.15% and 0.65% respectively). As a result, Phoenix reporting group will no longer be an interested party in the Company.

This is an English translation of segments of a Hebrew immediate report that was published on November 24, 2024 (Ref. No: 2024-01-618032) (hereinafter: the “Hebrew Version”). This English version is only for convenience purposes. This is not an official translation and has no binding force. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

About Max Stock

Max Stock is Israel’s leading extreme value retailer, currently present in 64 locations throughout Israel and 2 locations in Portugal. We offer a broad assortment of quality products for customers’ everyday needs at affordable prices, helping customers “Dream Big, Pay Small”. For more information, please visit https://ir.maxstock.co.il                 

Company Contacts:

Talia Sessler,
Chief Corporate Development and IR Officer
talia@maxstock.co.il

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Qatar Development Bank announces strategic investment in global Islamic FinTech, Wahed

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DOHA, Qatar, Nov. 24, 2024 /PRNewswire/ — Qatar Development Bank (QDB) announces a strategic investment in Wahed, a global Shariah-compliant fintech.

Wahed currently manages over $1 billion in assets and has attracted over 400,000 clients worldwide. The company is built on the principles of democratizing access to financial services and offers clients access to Shariah-compliant investments in its mobile app. Wahed removes the barriers to sophisticated investment management services that have been traditionally reserved for high-net-worth investors.

Khalid Al Jassim, Executive Chairman of Wahed MENA said: ‘We are delighted to welcome our new shareholders, QDB. We believe Qatar is fully aligned with our mission in creating a technology-first Islamic finance leader that unlocks a financial ecosystem free from Riba. We look forward to supporting the Qatar National Vision 2030 of becoming a leading knowledge-based economy.

Ali Rahimtula, Partner at Cue Ball Capital said: “Qatar Development Bank’s strategic investment is a clear signal of the faith the industry has in Wahed and its ability to create the future of Islamic Finance.”

About Wahed

Founded in 2015, Wahed is a financial technology company that is advancing financial inclusion through accessible, affordable, and values-based investing. The company has made significant inroads in the world Shariah compliant investing by creating an easy-to-use digital platform that provides a suite of Shariah compliant investing products including managed portfolios and venture and real estate investments. Wahed caters to over 400,000 customers globally and manages over $ 1 billion in assets.

For more information, visit: www.wahed.com

About Qatar Development Bank

Qatar Development Bank’s mission is to advance the economic and innovation development cycle of Qatar, supporting and contributing to the nation’s economic diversification. As well as a focus on the development of Qatar’s private sector, QDB is a powerful catalyst for socio-economic development in the country, empowering the local economy and bettering living standards.

For more information, visit: https://www.qdb.qa/

 

SOURCE Wahed

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Wahed appoints Khalid Al Jassim as Executive Chairman of Wahed MENA to help guide the strategic growth of Wahed in the region

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DOHA, Qatar, Nov. 24, 2024 /PRNewswire/ — Wahed, a global Shariah-compliant fintech, has appointed Khalid Al Jassim as Chairman of Wahed MENA.

On this appointment, Khalid commented, ”I am excited to guide Wahed’s growth in the region. Wahed’s mission of furthering Islamic Finance is one I resonate with deeply and I look forward to supporting its growth ambitions.”

Khalid has over twenty five years of investment banking and corporate advisory experience gained with some of the most innovative and groundbreaking institutions in the world.

His career spans leading firms including SABIC, Arthur Anderson and Arcapita Bank in Bahrain, where he was instrumental in making it into one of the PE powerhouses in the region. His responsibilities started in the earlier years with establishing the Investment Placement Team and transforming it into one of the most robust teams in the industry. At the time that Khalid left Arcapita to build his personal business, he was an Executive Director. Today he is Chairman of Afkar Vision, a private advisory house specialized in mergers and acquisitions with offices in Manama, Dubai and Riyadh.

As well as being one of the earliest investors in Wahed, he is currently Chairman of the Audit Committee and Board Member at Bahrain Islamic Bank, the 4th oldest Islamic Bank in the World and Board Member at SICO Bank and SICO Capital in Saudi, an $8bn asset manager in the region.

Mohsin Siddiqui, Wahed CEO said, “We are delighted to announce Khalid’s appointment. His unique understanding of the financial landscape in the MENA region is unparalleled and we are excited to bring this expertise in continuing to grow our presence in the region.”

About Wahed

Founded in 2015, Wahed is a financial technology company that is advancing financial inclusion through accessible, affordable, and values-based investing. The company has made significant inroads in the world Shariah compliant investing by creating an easy-to-use digital platform that provides a suite of Shariah compliant investing products including managed portfolios and venture and real estate investments. Wahed caters to over 400,000 customers globally and manages over $ 1 billion in assets.

For more information, visit: www.wahed.com

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