(New York) US industrial conglomerate 3M posted a hefty $6.8 billion loss in the second quarter following an agreement to end drinking water contamination lawsuits in the United States.
The group agreed in June to pay up to $12.5 billion in lawsuits brought by several public drinking water systems for contamination with PFAS, chemicals dubbed “eternal pollutants.”
This agreement, which must still be validated by a judge, provides for the payment of sums over thirteen years, between 2024 and 2036.
“As we indicated, we recorded a charge of $10.3 billion in the second quarter,” Group CEO Mike Roman said in a conference call with analysts on Tuesday.
The group has announced its intention to completely phase out production of all types of PFAS by the end of 2025.
Mr. Roman also clarified that “confidential mediation” was underway in lawsuits related to defective earplugs for military use. No further details.
As of June 30, 2022, the group was dealing with around 235,000 complaints about the product, accused by some of not providing enough protection against hearing loss.
In the second quarter, the turnover of 3M – which produces in particular adhesive tape, notepads, respiratory protection masks – fell by 4.3% to 8.32 billion dollars.
The loss per share was $12.35, but excluding exceptional items, it was a profit of $2.17.
On the strength of its “strong” performance excluding the heavy quarterly charge, management has revised upwards the guidance for the current fiscal year with net earnings per share expected between $8.60 and $9.10 (8. 50 to 9 dollars previously).
The stock ended Tuesday’s session on the New York Stock Exchange up 5.33% at $109.83.
