Why did MMM's Q1 2024 earnings exceed forecasts?

MMM's Q1 2024 earnings exceeded forecasts due to several key factors:

1. **Organic Sales Growth**: MMM's Transportation & Electronics segment saw a 4.5% increase in organic sales, driven by strong momentum in the auto OEM business, which is benefiting from increased global car and light truck bills. This organic growth outpaced expectations, contributing to the overall earnings beat.
2. **Acquisitions**: Acquisitions boosted segmental revenues by 1.3% in the quarter. These strategic expansions have enhanced MMM's market position and contributed to its financial performance.
3. **Foreign Currency Translation**: Foreign currency translation had a positive impact of 0.9% on MMM's top line. This positive currency movement supported revenue growth and helped MMM to exceed earnings forecasts.
4. **Cost Management**: MMM's focus on restructuring and simplifying its supply chain, along with progress on its healthcare spin-off, has improved underlying operating margins and cash flow. Effective cost management has enhanced profitability and contributed to the company's earnings outperformance.

In summary, MMM's Q1 2024 earnings exceeded forecasts due to strong organic sales growth, particularly in the Transportation & Electronics segment, acquisitions, favorable foreign currency translation, and effective cost management. These factors combined to deliver robust financial performance, surpassing market expectations.