Solventum Corporation reported its financial results for the third quarter and the first nine months of 2024, reflecting a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, total net sales reached $2,082 million, a slight increase from $2,074 million in the same period of 2023. However, net income significantly declined to $122 million, down from $460 million year-over-year, resulting in basic earnings per share of $0.70 compared to $2.66 in Q3 2023.

For the nine months ended September 30, 2024, total net sales were $6,179 million, up from $6,161 million in the prior year. Nevertheless, net income fell to $448 million from $1,074 million, with basic earnings per share decreasing from $6.22 to $2.59. The decline in profitability was attributed to increased costs associated with operating as a standalone entity following the spin-off from 3M, as well as higher selling, general, and administrative (SG&A) expenses, which rose to 33.7% of total net sales in Q3 2024, up from 25.3% in Q3 2023.

Segment performance varied, with the MedSurg segment generating $1,182 million in sales, a marginal increase from $1,180 million in Q3 2023. However, operating income for MedSurg dropped 20.8% to $243 million. The Dental Solutions segment experienced a decline in sales to $313 million from $331 million, with operating income down 36.8% to $72 million. The Health Information Systems segment saw a slight increase in sales to $326 million, but operating income decreased by 7.9% to $105 million. The Purification and Filtration segment reported a decrease in sales to $238 million, with a significant drop in operating income of 58.3%.

On the balance sheet, total assets increased to $14,745 million as of September 30, 2024, from $13,943 million at the end of 2023. However, total liabilities surged to $11,553 million, up from $2,277 million, primarily due to the issuance of $6.9 billion in senior notes and other debt instruments related to the spin-off. Total equity decreased to $3,192 million from $11,666 million, reflecting the impact of the spin-off transaction.

In terms of cash flow, net cash provided by operating activities for the nine months ended September 30, 2024, was $966 million, down from $1,368 million in the same period of 2023. The company ended the period with $772 million in cash and cash equivalents, a significant increase from $194 million at the beginning of the year, attributed to cash retained during the spin-off and operational cash generation.

Overall, Solventum's financial results indicate challenges in profitability and operational efficiency post-spin-off, despite slight growth in sales.