$MMM down more than 5% today.

Their CFO made some statements in their presentation at the Morgan Stanley Laguna Conference regarding a slow growth environment.

He referenced shifting consumer spending, slow electronic spending, and a slowing China (which is about 10% of the company’s revenues).

Despite these headwinds, $MMM did better than they expected in H1 ‘23 on a revenue basis, saw improved margins (net of settlements), and gave updates on litigations.

It seems that their main struggles and trends will continue to move sideways for the year. The CFO said they are still in the lower range of the earnings guidance for this year.

He emphasized climate tech, sustainable packaging, industrial automation, and next gen tech as long term areas for investments. He believes their material sciences and increasing digital capabilities puts them in a good position to win in those GDP+ segments.

Momentum seems to be building for this company in the right direction, but these efforts may not be fruitful for years. This is a year of execution, the following years may be the rewards.