Solventum's first-quarter profit falls 19% on lower surgical product sales

3M spin-off Solventum's SSOLV first-quarter profit fell 19% on Thursday, hurt by lower sales of its wound care and sterilization products used in surgeries.

The medical equipment maker reiterated its organic revenue and profit forecast for the current year. It expects organic revenue to be flat to down 2% from a year earlier, and adjusted profit of $6.10 to $6.40 per share.

A stronger dollar could hurt annual reported sales of the company by 50 basis points, it said. Solventum expects functional expenses to increase for the rest of the year.

Solventum is one of the largest providers of sterilization devices, wound dressings, medical tapes and other hospital consumables used by healthcare facilities.

Industrial conglomerate 3M continues to own a 20% stake in Solventum and expects to monetize the stake within five years after the divestiture.

Solventum said its first-quarter results were prepared on a "carve-out" basis from 3M's healthcare business. It will report results on a stand-alone basis from the second quarter.

Total net sales for the quarter came in at $2.02 billion, more than half of which came from its MedSurg business that provides wound dressings and surgical equipment.

Solventum said it plans to prioritize debt repayment over the next 24 months. It had long-term debt of $8.30 billion as of March 31.

The Minnesota-based company's net income fell to $237 million, or $1.37 per share, in the quarter, from $293 million, or $1.70 per share, a year earlier.

On an adjusted basis, Solventum earned $2.08 per share for the quarter ended March 31.