Mettler-Toledo International Inc. Reports Third Quarter 2014 Results

COLUMBUS, Ohio, Nov. 6, 2014 /PRNewswire/ -- Mettler-Toledo International Inc. MTD today announced third quarter results for 2014.  Provided below are the highlights:

• Sales in local currency increased 6% in the quarter compared with the prior year. Reported sales also increased 6% as currency did not impact sales growth in the quarter.
• Net earnings per diluted share as reported (EPS) were $2.89, compared with $2.43 in the third quarter of 2013. Adjusted EPS was $2.95, an increase of 13% over the prior-year amount of $2.60. Adjusted EPS is a non-GAAP measure and excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items. A reconciliation to EPS is provided on the last page of the attached schedules.

Third Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, "Sales growth was better than expected in the quarter as demand in Europe was solid despite very good growth in the previous year period.  Sales growth in Americas was strong and we had good growth in Asia / Rest of the World.  EPS growth was strong as we benefited from our top line organic growth and our ongoing margin enhancement and cost control initiatives." 

EPS in the quarter was $2.89, compared with the prior-year amount of $2.43.  Adjusted EPS was $2.95, an increase of 13% over the prior-year amount of $2.60.  

Sales were $629.1 million, a 6% increase in local currency sales, compared with $591.7 million in the prior-year quarter.  Reported sales also increased 6% as currency did not impact sales growth in the quarter.  By region, local currency sales increased 4% in Europe, 7% in the Americas and 7% in Asia / Rest of World as compared to the prior year.  Adjusted operating income amounted to $126.7 million, a 9% increase from the prior-year amount of $116.1 million.  Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is provided in the attached schedules.

Cash flow from operations was $127.3 million, compared with $122.8 million in the prior-year quarter.

Nine Month Results

EPS for the nine months was $7.30, compared with the prior-year amount of $6.35.  Adjusted EPS was $7.51, an increase of 11% over the prior-year amount of $6.78.  

Sales for the first nine months were $1.789 billion, a 5% increase in local currency sales, compared with $1.695 billion in the prior-year period.  Reported sales increased 6%, and included a 1% benefit from currency.  By region, local currency sales increased 5% in Europe, 5% in the Americas and 4% in Asia / Rest of World as compared to the prior year.  Adjusted operating income amounted to $330.6 million, a 7% increase from the prior-year amount of $307.9 million.  Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is provided in the attached schedules.

Cash flow from operations was $278.2 million, compared with $237.4 million in the prior-year period.

Outlook 

The Company noted that increased global economic uncertainty and uneven demand in some markets makes forecasting particularly challenging.  Based on today's assessment, management anticipates that local currency sales growth in the fourth quarter will be in the range of 4% to 5% and Adjusted EPS in the range of $4.12 to $4.17, an increase of 8% to 9%. 

For the full year 2014, local currency sales growth is expected to be in the range of 4% to 5% and Adjusted EPS in the range of $11.60 to $11.65, an increase of approximately 10%.  This compares to previous guidance of Adjusted EPS of $11.45 to $11.60. 

The Company stated that based on its assessment of market conditions today, management anticipates local currency sales growth in 2015 will be in the range of 4% to 5%.  This sales growth will result in Adjusted EPS in the range of $12.80 to $13.05.  Using the midpoint of the 2014 Adjusted EPS range, this reflects an increase of 10% to 12%. 

Adjusted EPS excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items.  While the Company has provided an outlook for Adjusted EPS, it has not provided an outlook for EPS as it would require an estimate of non-recurring items, which are not yet known.  

Conclusion

Filliol concluded, "With continued strong execution and if market conditions remain stable, we should produce solid sales and earnings growth for the remainder of this year and into 2015.  The global economy remains uncertain and volatility will likely continue.  Emerging markets are varied with China's growth path being tentative.  Market growth in the United States appears quite solid while recent economic news from Europe has not been favorable.  Globally, we believe we can continue to gain market share by capitalizing on our sales and marketing programs and new product launches.  Our continued margin enhancement initiatives combined with strong cash flow generation and share repurchases will continue to drive earnings growth next year and beyond."

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday November 6) at 5:00 p.m. Eastern Time.  To hear a live webcast or replay of the call, visit the investor relations page on the Company's website at www.mt.com/investors. The presentation referenced in the conference call will be located on the website prior to the call.

METTLER TOLEDO is a leading global supplier of precision instruments and services. The Company has strong leadership positions in all businesses and believes it holds global number-one market positions in a majority of them. Specifically, METTLER TOLEDO is the largest provider of weighing instruments for use in laboratory, industrial and food retailing applications. The Company is also a leading provider in analytical instruments for use in life science, reaction engineering and real-time analytic systems used in drug and chemical compound development and process analytics instruments used for in-line measurement in production processes. In addition, METTLER TOLEDO is the largest supplier of end-of-line inspection systems used in production and packaging for food, pharmaceutical and other industries. Additional information about METTLER TOLEDO can be found at www.mt.com/investors.

Statements in this press release which are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934.  These statements involve known and unknown risks, uncertainties and other factors that may cause our or our businesses' actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements.  In some cases, you can identify forward-looking statements by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or "continue" or the negative of those terms or other comparable terminology.  For a discussion of these risks and uncertainties, please see the discussion on forward-looking statements in our current report on Form 8-K to which this release has been furnished as an exhibit.  All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under the captions "Factors affecting our future operating results" and in the "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our annual report on Form 10-K for the most recently completed fiscal year, which describe risks and factors that could cause results to differ materially from those projected in those forward-looking statements.  

 

 

 

 

 

SOURCE Mettler-Toledo International Inc.