And then the third piece is with all the work that we have done through the restructuring, where we have got the supply chain streamlined and restructured so that it’s more agile. All of that is playing itself out in the inventory that we are seeing. I would tell you, as I said in my prepared remarks, there’s more to go here. There’s more that we can keep driving in this space. And we are going to continue driving it because this is a great place where we can continue to generate very strong cash for 3M.
Operator: Our next question comes from the line of Deane Dray with RBC Capital Markets. Please proceed with your question.
Deane Dray: Thank you. Good morning, everyone. What are you planning and assuming for the auto strike impact for 4Q?
Michael Roman: Yes, Deane, so it’s something we’re watching very closely. We’re — as you know, we stay very close with the automotive OEMs, our key customers there. We are — we haven’t seen a significant impact on our business to date. And we continue to watch it closely. We’re staying connected on what happens week-to-week and impacting our demand. But it’s something that as part of — an important part of our global automotive business, the automotive as we talked about in the quarter, had very good performance. We had 16% growth in the quarter, outgrowing build rates and that’s the broader core of our automotive business, our auto electrification business is growing even faster. So it’s an important part. It’s had some impact but relatively small impact to this point. Again, we’re watching it closely as we move ahead.
Deane Dray: Got it. And then you mentioned earlier in the prepared remarks, the back-to-school sales were weak. Can you quantify that just maybe year-over-year? And then how does this set up for holiday sales with consumer being weak, higher rates? What’s the assumption there as well?
Michael Roman: Yes, Dean, I probably would point you back at some of the data out there about year-over-year spend back-to-school being down per student. There’s a number of metrics out there. For us, our category broadly in consumer is exposed to like shifting discretionary spend. So that continues to be part of the consumer story. So it wasn’t back-to-school story, only back-to-school was muted. We didn’t see the strong replenishment cycles that we would have seen in a stronger back-to-school. So I think we confirmed the data that’s out there. And as we look ahead, we’re — I would say we’re just looking at the uncertainty around what happens for the holiday season as well. And so we’ll be monitoring that. And again, there’s a broader story around consumer, retail for us, the shift of spending from discretionary products into areas like food and I would say, experienced kinds of spending, that trend has continued.
So those are both underlying some of the performance that we saw in consumer in the quarter and how we’re thinking about it into Q4.
Operator: Our next question comes from the line of Stephen Tusa with JPMorgan. You may proceed with your question.
Stephen Tusa: Hi, good morning. Could you just give just an update total expected now inflation kind of carryover for the year? I know you mentioned it in the second quarter. Is that unchanged relative to what you had said before? I think it was like $150 million? Maybe that changed?
Monish Patolawala: No change, Steve.
Stephen Tusa: Okay. And then I guess, low single digits for the year on pricing. So that’s kind of like a mid-single-digit volume decline. That kind of feels already recessionary. Things seem like very stable for you guys revenue-wise. How much of that negative 5% do you think is a function of destocking versus trend line on demand? And then just one last one for the fourth quarter. How much of that sequential sales decline are you expecting from electronics seasonality?
Michael Roman: Yes. So Steve, maybe just thinking about the — take the channel dynamic first, if you want. I would say — when we look across the channel where we’re seeing some destocking as in industrial channels, and that’s really — I think we talked about that last quarter, too, as supply chain performance has improved and stabilized. We’re seeing the industrial channels shorten up their replenishment cycles. And so they’re managing their inventory maybe back to more normal levels prior to when we got hit with some of the supply chain disruption. So that’s the one destocking effect. There is some destocking in consumer that played out. The biggest part of that played out over the last year, retailers focused pretty heavily on taking out inventory.
That seems to have played out, although there’s some of that with the soft demand that’s continuing. So it’s, I would say, the rest of it — when I look across the channel, otherwise, it’s pretty stable globally; maybe some adjustments in China in some of those same markets as we continue to see the macro looking for where the macro goes as we go forward. Looking as we move ahead, electronics, we talked about stabilizing. It’s really, Monish pointed out, it’s part of it’s a year-over-year comp. Remember last year, third and fourth quarter, we saw a decline in the electronics end markets, and we saw that in our businesses. So that’s part of the view that Q4 stabilizes that year-over-year comp gets a little more — changes a little bit as we lap some of those earlier declines from the first half.
So I would say, we’re staying close to that holiday season and what happens. That’s an important season for electronics, and we’ll be watching that closely as we go into the quarter.
Monish Patolawala: Steve, I’ll just add. I’ll just add — I just wanted to add one more disposable respirators is down $600 million on a year-over-year basis. That’s approximately 200 basis points of growth.
Stephen Tusa: Right. So sorry, are you assuming kind of normal sequential seasonal decline in electronics, you are?
Michael Roman: Yes. Well, in the broader business, we have seasonality. Some of that is normal end market cycles, but it’s also billing days as well. We have the holiday season. So we see it sequentially from Q3 to Q4, we see that normal trend.
Stephen Tusa: Right, which you’ve always had, of course
Operator: Our next question comes from the line of Nigel Coe with Wolfe Research. Please proceed with your question.
