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| And then our operating margin is still looking at the same kind of range, 19.5% to 20%, up 250 basis points over year, reflecting continued improvements in our execution operations |
| So in our view, as I look at margin expansion, which allows us to get cash, plus working capital, and then you invest some of that back in CapEx and R&D, we will continue to be a good cash generator that we have done in the past |
| So they have a very strong cash profile |
| And then first one, we delivered a strong performance in 2023 because of our focus on improving performance |
| We delivered above our expectations from the beginning of the year on EPS and cash |
| So it's going to take a strong balance sheet and make it stronger |
| We have a strong balance sheet, strong cash generator |
| And so I think that starts -- we're a strong and reliable cash generator as a company |
| We had a strong cash generation in '23 |
| Just a reflection on the strong, reliable cash generator that we are as a company |
| And so we should expect 2025 to be, in theory, a very strong margin year |
| By taking those actions, not only do we improve margin and cash flow, we create space to consumer investments, advertising, merchandising, other investments, to those areas where we do have a strong opportunity to grow |
| We have other parts of those categories and other categories where we have strong right to win, strong differentiation |
| So it's -- there's a near-term headwind in revenue, but it positions us for stronger margins, stronger cash flow |
| So there's areas of strength commercially, safety, home improvement, electronics, automotive, where we are well positioned, and we see opportunity for our material science |
| But where we are investing in significant commercial sized opportunities that we have today, where our innovation can play that in attractive markets, that's what will really drive that organic volume growth improvement as we go |
| Our teams have done a great job |
| You're enabling yourself to perform better for your customers, improving service, and that adds to it as well |
| So we're excited |
| So great progress there |
| And then the third one, reducing risk uncertainty, we had 2 important settlements announced last year, public water suppliers in June and Combat Arms in August, making very good progress on both of those |
| You're improving your margins, your gross margins |
| And to a degree, the -- when I talked about the beginning driving improvement in our performance, that is an enabler for organic growth, too |
| Public water supplier, we continue making good progress in the settlement |
| So we had a strong year in build rates, and we continue to outgrow those build rates |
| Automotive had strong growth last year |
| And we're making good progress |
| We've also had good success in raising prices to offset inflation, which we've done last year and the year before |
| We committed to what we've laid out, and we are confident we'll have another successful year in '24 |
| So we're excited about the year |
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| You've seen some of it show up as a negative in revenue because now you're going through distributor margins |
| Europe, Asia, China, also, I would say, soft, muted as we start the year |
| Consumer retail is still, I would say, muted and soft in -- as we start the year, so similar to what we saw in Q4 |
| Some of it looks like it's caution -- cautious outlook for -- and it's hard to tell what's demand and what's inventory management |
| Semiconductors, still soft |
| Our volumes are down 20%, which reflects working with customers to transition them and be on track for that exit |
| And I -- before you see an inflection point, in a recovery, you got to see an inflection point in demand, so that recovery in electronics would have to be there |
| There's been other times like coming out of a Great Recession, where all markets were synched together |
| And as we look at 2024, it's flat to slightly down in build rates projections |
| Julian Mitchell And when we think about sort of pruning elements, is that something that investors should expect and sort of maybe several years, you have that 100 basis point headwind on the top line? And then on the other side of it, there some areas where maybe you're taking share that could offset the pruning aspect |
| We are -- we need to be competitive in our markets and take share |
| The word stranded costs on our definition, because everyone's got a little definition, is when you have costs that you can't commensurate, reduce with volume, in our view, that's stranded cost, a negative leverage, which you avoid and don't want to deal with |
| It wasn't being differentiated |
| Third one is around through-cycle earnings growth versus the sort of multi-industry average, slightly below |
| And then the last question is around what's the biggest reason to not own 3M right now |
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