Why did 3M's net profit drop in Q4 2024?

3M's net profit dropped in Q4 2024 due to several factors:

1. **Legal Challenges and Litigation Costs**: 3M has been facing significant litigation related to its production of per- and polyfluoroalkyl substances (PFAS), which have been linked to health issues. The costs associated with these legal challenges, including the net costs for significant litigation, have impacted the company's net profit.
2. **Market Conditions and Sales**: The company has faced challenges with on-time in full (OTIF) delivery performance, leading to lost business and fines. Additionally, the forecast accuracy of the company has been running 10 to 15 points below expectations, impacting demand visibility and inventory management. These factors, coupled with a decline in automotive OEM build rates, have affected the company's sales and, consequently, its net profit.

In summary, 3M's net profit drop in Q4 2024 is a result of a combination of legal challenges, market conditions, and sales-related factors.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|MMM|MMM.N|3M|2024 Q1|-4.892966360856269|9.33E8|169|
|MMM|MMM.N|3M|2024 Q2|116.83733177296665|1.151E9|169|
|MMM|MMM.N|3M|2024 Q3|166.44133268952197|1.376E9|169|
|MMM|MMM.N|3M|2024 Q4|-23.125659978880677|7.28E8|169|