STREET. PAUL, min.,December 20, 2022/PRNewswire/ --3M(NYSE: MMM) today announced that it will stop manufacturing perfluoroalkyl and polyfluoroalkyl substances (PFAS) and will work to phase out the use of PFAS in its product portfolio by the end of 2025. 3M's decision is based on careful consideration and assessment. full picture of the evolving external landscape, including several factors such as accelerating regulatory trends with a focus on reducing or eliminating the presence of PFAS in the environment and changing stakeholder expectations.
"This is a moment that calls for the kind of innovation3Mit is known," said3Mpresident and chief executive officermike romano. "While PFAS can be manufactured and used safely, we also see an opportunity to lead a rapidly evolving external regulatory and commercial landscape to achieve the greatest impact for those we serve. This action is another example of how we are positioning ourselves3Mfor continued sustainable growth, optimizing our portfolio, innovating for our clients and delivering long-term value for our shareholders."
3Mo:
- Exit all PFAS manufacturing by the end of 2025:3Mwill discontinue manufacturing of all fluoropolymers, fluorinated fluids, and additive products based on PFAS. We will help facilitate an orderly transition for clients.3Mintends to meet current contractual obligations during the transition period.
- Work to phase out the use of PFAS across our entire product portfolio by the end of 2025:We have already reduced our use of PFAS in the last three years through continuous research and development and will continue to innovate new solutions for customers.
With these two actions,3Mis committed to innovating for a world less dependent on PFAS. 3M products are safe for their intended uses.3MWe will continue to remedy PFASs and address disputes by defending ourselves in court or through settled settlements, as appropriate.
financial information
As noted above,3Mwill cease all PFAS manufacturing by the end of 2025. Current annual net sales of manufactured PFAS are approximately$1.3 billionwith estimated EBITDA margins of approximately 16%. Furthermore, as also mentioned above,3Mwill work to phase out the use of PFAS across our entire product portfolio by the end of 2025, which represents a small portion of 3M's overall revenue. Throughout the production of PFAS manufacturing,3Mexpects to incur total charges before related taxes of approximately$1.3 billionfor$2.3 billion, including the Q4 2022 figure below. Approximately 70-80% of the total is expected to be non-cash.
The company expects to receive an estimated pre-tax charge in the fourth quarter of 2022 in a range of$700 millionfor$1.0 billion, mainly non-cash and related to the impairment of assets.
3MIt is intended to reflect fourth quarter 2022 costs as an adjustment to earnings, adjusted for special items. As of 2023,3Mit also expects to adjust the results of the manufactured PFAS upon reaching the results, adjusted for special items.
About PFAS
PFAS are essential in the manufacture of many products important to modern life, including medical technologies, semiconductors, batteries, telephones, automobiles, and aircraft. 3M products are safe and effective for their intended uses. Additional details are available on the 3M website,www.3M.com/PFAS.
Sobre3M
3M(NYSE: MMM) believes that science helps create a better world for everyone. By unleashing the power of people, ideas and science to reimagine what's possible, our global team uniquely addresses the opportunities and challenges of our customers, communities and the planet. Learn how we work to improve lives and do the following3M.com/newso a Twitter one@3Mo@3MNoticias.
Please note that the Company discloses important financial, business and operating information using the3Minvestor relations website, SEC filings, press releases, public conference calls, and webcasts. The company also uses the3Mnews hub and social media to communicate with our customers and the public about the company, products and services, and other matters. It is possible that the information3Mpostings in the news center and on social media may be considered material information. Thus, the company encourages investors, media and others interested in3Mto review information posted on the 3M News Center and on social media channels such as Twitter at @3M or @3MNews.
forward-looking statements
This press release contains forward-looking information about 3M's financial results and estimates and business prospects that involve material risks and uncertainties. You can identify these statements by using words such as "anticipate", "estimate", "expect", "aim", "project", "intend", "plan", "believe", "will", "should". ". , "may", "target", "forecast" and other words and terms of similar meaning relating to any discussion of future operating or financial performance, future costs to be incurred, or business plans or prospects. Actual results may differ materially are as follows: (1) the world economy, politics, regulation, capital markets and other external conditions and other factors beyond the Company's control, including natural and other disasters or weather changes that affect the operations of the Company or its customers and suppliers; (2) risks related to public health crises, such as the global pandemic associated with coronavirus (COVID-19); (3) foreign currency exchange rates and fluctuations in those rates; (4) liabilities related to certain fluorinated chemicals, including lawsuits related to various products and chemicals related to PFAS, and declaration es and governmental regulatory processes and inquiries related to PFAS in various jurisdictions; (5) legal proceedings, including significant developments that may occur in the legal and regulatory processes described in the Company's Annual Report on Form 10-K for the year endedDecember 31, 2021, updated by the Company's Current Report on Form 8-K datedApril 26, 2022, and any subsequent quarterly reports on Form 10-Q (the "Reports"); (6) competitive terms and customer preferences; (7) timeliness and market acceptance of new product offerings; (8) the availability and cost of purchased components, compounds, raw materials, and energy (including oil and natural gas and its derivatives) due to shortages, increased demand, or supply interruptions (including those caused by natural disasters and other events); (9) unforeseen problems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions in the Company's information technology infrastructure; (10) the impact of acquisitions, strategic alliances, divestitures and other unusual events resulting from portfolio management actions and other evolving business strategies and possible organizational restructuring; (11) operational execution, including scenarios where the Company generates lower-than-estimated productivity improvements; (12) financial market risks that may affect the Company's funding obligations under the defined benefit pension and postretirement plans; (13) the Company's credit ratings and cost of capital; (14) conditions related to foreign taxes, including changes in tax rates, laws or regulations; (15) matters related to the proposed spin-off of the Company's Health Care business, including whether the transaction will be completed or, if completed, will be on the terms expected; the risk that the expected benefits will not be realized; the risk that costs or dyssynergies exceed anticipated values; the ability to satisfy various closing conditions; potential business interruption; management time deviation; the impact of the transaction (or its pending date) on the Company's ability to retain talent; potential impacts on the Company's relationships with its customers, suppliers, employees, regulators and other counterparties; the ability to carry out the desired tax treatment (including whether to request or obtain a private letter decision from the IRS); the risk that necessary consents or approvals are not obtained; the risks associated with the financing that may be obtained and the indebtedness that may be incurred in connection with the transaction; (16) matters related to the voluntary chapter 11 proceedings of the company's subsidiary, Aearo Technologies, and certain of its affiliates (the "Aearo Entities"), including legal risks related to chapter 11 proceedings; potential impacts to the Company's reputation and its relationships with customers, suppliers, employees, regulators and other counterparties and members of the community; Potential impacts on the Company's liquidity or results of operations, including risks related to the amount that will be required to fully and finally settle all of the Company's obligations to make payments to settle such claims under its financing and indemnity agreement with Aearo Entities; and the Aearo Entities' ability to navigate chapter 11 procedures to obtain approval and consummation of a plan of reorganization; (17) matters related to the Company's plans to phase out the manufacture of PFAS and to discontinue the use of PFAS in its product portfolio (the "exit"), including the actual timing, costs, and financial impact of such exit ; Company's ability to complete such departure, on time or in any manner; potential government or regulatory actions related to the manufacturing and production of PFAS or the company's exit plans; the Company's ability to identify and manufacture acceptable substitutes for discontinued products and the possibility that such substitutes may not achieve anticipated or desired business or operating results; potential litigation related to the Company's exit plans; and the possibility that the planned exit entails higher costs than anticipated, or otherwise negatively impacts the Company's relationship with its customers and other counterparties. Changes in such assumptions or factors could produce significantly different results. A more detailed description of these factors can be found in the Reports under "Cautionary Note Regarding Factors That May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A (Annual Report) and in Part I , Item 2 and Part II, Item 1A (Quarterly Reports). The Company does not undertake any obligation to update the forward-looking statements discussed in this document as a result of new information or future events or developments.
Investor Contacts:
bruce jermeland, 651-733-1807
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Diane Farrow, 612-202-2449
