Why Shares in 3M Disappointed in 2023
Shares in industrial conglomerate 3M (NYSE: MMM) declined by 8.9% last year, according to data provided by S&P Global Market Intelligence. The move comes down to a combination of deterioration in the company's end markets, costly legal settlements that will drain cash for many years, and another year of disappointing operational performance.
There's little management can do about deteriorating end markets. Unfortunately, 3M's exposure to consumer electronics, automobiles, home goods, and other interest rate sensitive areas of the economy meant it came under pressure last year.
For example, the table below shows how the healthcare segment (to be spun off later this year) is the only one to report year-over-year organic sales growth so far in 2023.
Source Fool.com
