Technology
Solventum Reports Third Quarter 2024 Financial Results and Raises Full-Year Guidance
Published
2 hours agoon
By
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/solventum-reports-third-quarter-2024-financial-results-and-raises-full-year-guidance-302299211.html
SOURCE Solventum
You may like
Technology
PayrollOrg’s Chapter Leadership Summit to Equip Payroll Chapter Leaders with Tools for Success
Published
10 mins agoon
November 7, 2024By
LAS VEGAS, Nov. 7, 2024 /PRNewswire/ — PayrollOrg (PAYO) will provide local chapter leaders with the essential tools and guidance they need to ensure the ongoing success of their chapters at the Chapter Leadership Summit, November 7 – 8 in Las Vegas, Nevada.
“Supporting our chapter leaders is crucial to the growth and sustainability of local chapters,” said Dan Maddux, executive director of PayrollOrg. “The Chapter Leadership Summit is designed to not only provide practical tools and strategies but also foster a strong network of motivated leaders who can inspire their teams and communities.”
Participants will have the unique opportunity to connect with fellow leaders, exchange ideas, and develop strategies to motivate their chapter members. Tailored educational sessions will offer specialized training on critical topics such as fiscal responsibility, general chapter operations, and event planning. These sessions will be led by guest speakers with expertise in chapter management and leadership development.
The conference will be held at MEET Las Vegas in downtown Las Vegas. Visit PAYO online to view the full conference agenda. The event is sponsored by Wisely by ADP.
PayrollOrg is the leader in payroll education, publications, and training. Visit PAYO online at www.payroll.org.
View original content to download multimedia:https://www.prnewswire.com/news-releases/payrollorgs-chapter-leadership-summit-to-equip-payroll-chapter-leaders-with-tools-for-success-302299403.html
SOURCE PayrollOrg
Technology
New features revealed for PaperCut Hive cloud print management solution
Published
10 mins agoon
November 7, 2024By
Groundbreaking enhancements improve print management with intelligent job routing, advanced security protocols, low-touch onboarding, and cost-tracking tools, redefining industry standards.
PORTLAND, Ore., Nov. 7, 2024 /PRNewswire/ — PaperCut Software, a global leader in print management solutions, announces the latest feature upgrades to PaperCut Hive, its cloud-native print management solution. This release, including intelligent print job routing, advanced security with SSO and MFA, and comprehensive print cost tracking, empowers organizations to streamline printing while enhancing security and efficiency across all user levels.
With innovations such as “Autopilot” intelligent print job routing, customizable print delivery profiles, and SAML-based Single Sign-On (SSO) with Multi-Factor Authentication (MFA), PaperCut Hive is now more adaptable than ever. The updates aim to make secure, efficient printing accessible for businesses of all sizes, providing admins with greater control and flexibility over their printing infrastructure.
“PaperCut Hive’s latest features redefine what’s possible in cloud-native print management,” said Keith O’Brien, Head of Cloud Products at PaperCut. “We’ve developed tools that give admins unprecedented control over print routing and security while delivering an intuitive, low-touch experience for end users. By simplifying onboarding and reducing the burden on IT, PaperCut Hive continues to bring scalable, secure print management to organizations of all sizes.”
Key enhancements include the following:
Autopilot Intelligent Routing: The new Autopilot feature selects optimal print nodes automatically, ensuring efficient print delivery in any network environment.Advanced Print Delivery Profiles: Allows IT administrators to customize print job routing based on unique organizational needs, optimizing efficiency.Enhanced Security with SAML SSO and MFA: Provides secure, unified access for admins and end users, integrating seamlessly with existing enterprise systems.Comprehensive Cost Tracking: New financial tools give visibility over print and copy expenses, promoting accountability and encouraging cost-saving measures.Intuitive, Self-Serve User Onboarding: Low-touch onboarding lets end users set up their devices independently, freeing up IT resources.
This release also includes expanded support for major printer brands with new Kyocera and Lexmark apps, ensuring compatibility with a broader range of devices and simplifying the setup for organizations of any size.
View original content:https://www.prnewswire.com/news-releases/new-features-revealed-for-papercut-hive-cloud-print-management-solution-302299431.html
SOURCE PaperCut Software
Technology
Acclime enters strategic partnership with Danish Industry
Published
10 mins agoon
November 7, 2024By
SINGAPORE, HONG KONG and COPENHAGEN, Denmark, Nov. 8, 2024 /PRNewswire/ — Acclime, providing businesses with corporate, governance, and advisory services throughout Asia and major markets, announces today that it has entered a strategic partnership with Danish Industry (DI) to provide high-end corporate and professional services to the members of DI in the markets where Acclime operates.
DI is a private business and employers’ organisation representing more than 20,000 member companies in Denmark, making it the country’s largest commercial association. DI helps its members transform global opportunities into business successes, with 1,200 employees dedicated to the task in Copenhagen, Brussels, Mumbai, Chennai, New York, Shanghai, Berlin, Nairobi and Seoul. There are also associated partner offices in Australia, Brazil and Mexico.
In the partnership agreement between DI and Acclime today, DI’s operations in Shanghai will become an integral part of the Acclime Group in line with DI’s strategy of expanding its presence across the Asia-Pacific region to greater service Danish and other Scandinavian businesses.
Acclime has operational centres in 14 markets across the Asia-Pacific region. Its Greater China reach includes offices in Beijing, Shanghai, Shenzhen, Guangzhou and Hong Kong. Acclime boasts more than 1,400 professionals working to provide its 16,000+ clients with advisory, market entry, business compliance, accounting, tax, payroll and legal solutions. This positions Acclime as the ideal service provider for DI’s members as they seek to expand their Asian presence.
Mr. Izzy Silva, CEO of Acclime, commented: “We welcome this partnership as it clearly increases our reach and forms a strong link to businesses across Scandinavia wishing to expand operations in Asia. We look forward to introducing our services to DI’s existing clients and new members who are looking east.”
DI’s Deputy CEO, Mr. Thomas Bustrup, added: “I was in Shanghai at the beginning of DI’s operations there in 2003 and have seen how the team have expertly assisted Danish companies with their China expansions. Bringing in Acclime’s expertise and strength allows us to become a better part of our members’ full expansion journey across the entire Asia-Pacific region. This has long been a dream of ours, and we are excited to see this new potential.”
Managing Director of DI Asia Base in Shanghai, Mr Glen Mikkelsen, and his team of 20 professional staff will transfer with the business across to Acclime China. A comprehensive program of marketing outreach activities is planned to the DI membership base to inform them of the new services and markets available via this strategic partnership with Acclime.
About Acclime
Acclime provides businesses with corporate, governance, and advisory services. It operates in 14 countries, employing over 1,400 dedicated professionals. The firm provides a comprehensive range of professional services and business advisory to help businesses navigate complex regulatory environments and achieve their goals at all stages of the business life cycle.
About Danish Industry
Danish Industry (DI) is Denmark’s largest, most representative and most influential business and employers’ organisation, covering manufacturing as well as service industries across sectors such as transport, energy, IT, health, trade and professional services. DI helps Danish companies every day in their efforts to win in international markets and turn global opportunities into successful businesses – locally, nationally and internationally.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/acclime-enters-strategic-partnership-with-danish-industry-302298390.html
SOURCE Acclime
PayrollOrg’s Chapter Leadership Summit to Equip Payroll Chapter Leaders with Tools for Success
New features revealed for PaperCut Hive cloud print management solution
Acclime enters strategic partnership with Danish Industry
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Peloton Unveils Holiday 2022 Creative Campaign Highlighting How Motivation Transcends Beyond the Workout
These ’90s fashion trends are making a comeback in 2017
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Coin Market5 days ago
Bitcoin price peels back from its weekly high, but BTC derivatives markets look good
-
Technology5 days ago
Qiddiya and leading tech company Globant agree a landmark partnership to make Saudi Arabia’s Qiddiya City one of the world’s most immersive entertainment hubs
-
Coin Market5 days ago
What is BlackCat ransomware in crypto?
-
Coin Market5 days ago
Saylor falls for fake Trump news, Kraken restructures, and more: Hodler’s Digest, Oct. 27 – Nov. 2
-
Coin Market3 days ago
Bitcoin price volatility expected ahead of US elections: Here are the price levels to watch
-
Technology5 days ago
The Zunyi Talk “China’s Development: An Opportunity for a Colorful World” Successfully Held
-
Coin Market3 days ago
Singapore advances asset tokenization with new MAS frameworks
-
Coin Market3 days ago
US regulators mull approving Grayscale crypto index ETF