3M Company ( MMM ) shares are trading higher after the company reported better-than-expected first-quarter 2024 results.

The company reported net sales of $8.00 billion, a slight decline of 0.35%Y/Y. Adjusted net sales totaled $7.72 billion, up 0.5% Y/Y, beating the consensus of $7.63 billion with 0.8% growth organic sales.

Adjusted EPS was $2.39 compared to $1.97 in the prior-year quarter, beating the consensus of $2.10. 

Adjusted operating margin expanded to 21.9% from 17.9% a year ago. Operating cash flow for the quarter was $767 million, down from $1.275 billion a year ago. Adjusted free cash flow was $833 million.

As announced earlier, William “Bill” Brown will become the  CEO effective May 1, and Mike Roman will become Executive Chairman.

On April 1, 3M ( MMM ) successfully spun off its healthcare business into Solventum Corporation . 3M ( MMM ) holds a 19.9% stake in Solventum, planning to monetize it within five years.

MMM returned $835 million to shareholders via dividends. In addition, following the spin of Solventum ( SOLV ), 3M’s dividend payout ratio is expected to be approximately 40% of adjusted free cash flow. The second-quarter dividend is expected to be declared in May and is subject to board approval.

Also Read: New CEO, Bottoming Cycle, And Spin-Off Fuel Optimism For 3M, Analyst Upgrades Stock

On March 29, the U.S. District Court in Charleston, South Carolina, approved the company’s settlement with U.S. public water suppliers. The previously announced settlement commits up to $10.3 billion pre-tax over 13 years, a sum already reserved by the company.

Fiscal 2024 Outlook: 3M now sees adjusted sales growth of (0.25%) to +1.75% and, on an organic basis, flat to +2%; Sees adjusted EPS of $6.80-$7.30 vs $7.49 consensus.

Price Action: MMM shares are trading higher by 4.3% at $96.15 at the last check Tuesday.