3M to exit PMAS manufacturing by 2025

3M announced it will exit per- and polyfluoroalkyl substance, or PFAS, manufacturing and work to discontinue the use of PFAS across its product portfolio by the end of 2025. 3M’s decision is based on careful consideration and a thorough evaluation of the evolving external landscape, including multiple factors such as accelerating regulatory trends focused on reducing or eliminating the presence of PFAS in the environment and changing stakeholder expectations. The company will exit all PFAS manufacturing by the end of 2025: 3M will discontinue manufacturing all fluoropolymers, fluorinated fluids, and PFAS-based additive products. The company will help facilitate an orderly transition for customers. 3M intends to fulfill current contractual obligations during the transition period. Work to discontinue use of PFAS across our product portfolio by the end of 2025: The company has already reduced our use of PFAS over the past three years through ongoing research and development, and will continue to innovate new solutions for customers. With these two actions, 3M is committing to innovate toward a world less dependent upon PFAS. 3M’s products are safe for their intended uses. 3M will continue to remediate PFAS and address litigation by defending ourselves in court or through negotiated resolutions, all as appropriate. As noted above, 3M will exit all PFAS manufacturing by the end of 2025. The current annual net sales of manufactured PFAS are approximately $1.3B with estimated EBITDA margins of approximately 16%. In addition, as also noted above, 3M will work to discontinue the use of PFAS across our product portfolio by the end of 2025, which represents a small portion of 3M’s overall revenue. Over the course of the exit from PFAS manufacturing, 3M expects to incur related total pre-tax charges of approximately $1.3B to $2.3B, including the fourth quarter 2022 amount below. Approximately 70-80% of the total is expected to be non-cash. The company expects to take an estimated fourth quarter 2022 pre-tax charge in a range of $0.7B to $1B, primarily non-cash and related to asset impairments. 3M intends to reflect the fourth quarter 2022 costs as an adjustment in arriving at results, adjusted for special items. Beginning in 2023, 3M also expects to adjust for the results of manufactured PFAS in arriving at results, adjusted for special items.