Market Overview

Mettler-Toledo International Inc. Reports Third Quarter 2019 Results

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COLUMBUS, Ohio, Nov. 7, 2019 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE:MTD) today announced third quarter results for 2019.  Provided below are the highlights:

  • Reported sales increased 3% compared with the prior year.  In local currency, sales increased 4% in the quarter as currency reduced sales growth by 1%. 
  • Net earnings per diluted share as reported (EPS) were $5.20, compared with $4.93 in the prior-year period.  Adjusted EPS was $5.77, an increase of 13% over the prior-year amount of $5.12.  Adjusted EPS is a non-GAAP measure, and we have included a reconciliation to EPS on the last page of the attached schedules. 

Quarterly Results

Olivier Filliol, President and Chief Executive Officer, stated, "Local currency sales growth in the quarter excluding Food Retail, was 6%, with excellent growth in the Americas and solid growth in Europe and Asia/Rest of World.  Despite continued challenges from the impact of adverse currency and tariff costs, we achieved strong margin improvement and earnings growth in the quarter."

GAAP Results
EPS in the quarter was $5.20, compared with the prior-year amount of $4.93

Compared with the prior year, total reported sales increased 3% to $753.9 million.  By region, reported sales increased 6% in the Americas and 2% in Asia/Rest of World.  Reported sales in Europe declined by 2%.  Earnings before taxes amounted to $169.4 million, compared with $160.4 million in the prior year. 

Non-GAAP Results
Adjusted EPS was $5.77, an increase of 13% over the prior-year amount of $5.12.     

Compared with the prior year, total sales in local currency increased 4% as currency reduced reported sales growth by 1%.  By region, local currency sales increased 7% in the Americas, 2% in Europe and 4% in Asia/Rest of World.  Adjusted Operating Profit amounted to $196.2 million, an 8% increase from the prior-year amount of $182.0 million

Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.

Year-to-Date Results

GAAP Results
EPS was $14.67, compared with the prior-year amount of $12.81

Compared with the prior year, total reported sales increased 2% to $2.165 billion.  By region, reported sales increased 5% in the Americas and 3% in Asia/Rest of World.  Reported sales in Europe declined 2%.  Earnings before taxes amounted to $450.3 million, compared with $421.4 million in the prior year. 

Non-GAAP Results
Adjusted EPS was $15.02, an increase of 11% over the prior-year amount of $13.50.     

Compared with the prior year, total sales in local currency increased 5% as currency reduced reported sales growth by 1%.  By region, local currency sales increased 5% in the Americas, 3% in Europe and 7% in Asia/Rest of World.  Adjusted Operating Profit amounted to $521.8 million, a 6% increase from the prior-year amount of $490.8 million

Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.

Outlook

Based on today's assessment of market conditions, management anticipates that local currency sales growth in the fourth quarter 2019 will be approximately 3%, and Adjusted EPS is forecasted to be in the range of $7.66 to $7.71, an increase of 12% to 13%. 

For the full year 2019, local currency sales growth is expected to be approximately 5%.  This sales growth is expected to result in Adjusted EPS in the range of $22.65 to $22.70, an increase of 11% to 12%. 

The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2020 will be approximately 4%.  This sales growth is expected to result in Adjusted EPS in the range of $24.85 to $25.10.  Using the mid-point of 2019 guidance, this would result in Adjusted EPS growth of 10% to 11%. 

While the Company has provided an outlook for local currency sales growth and Adjusted EPS, it has not provided an outlook for reported sales growth or EPS as it would require an estimate of currency exchange fluctuations and non-recurring items, which are not yet known.  The Company noted in making its outlook that uncertainty remains in the macroeconomic environment and market conditions are subject to change.   

Conclusion

Filliol concluded, "We continue to benefit from our growth initiatives including investments in our field force, Spinnaker sales and marketing programs and new product launches.  With the exception of Food Retail, demand in our markets is solid and we have generated good growth.  As we look to 2020, we remain confident in the factors we can control – namely executing on our growth initiatives to continue to gain market share – but acknowledge greater uncertainty in the macroeconomic environment.  We also believe that our margin and productivity initiatives will continue to yield tangible results.  Based on market conditions today, we believe we can deliver strong results in 2019 and 2020." 

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, November 7) 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 (NYSE:MTD) is a leading global supplier of precision instruments and services. We have strong leadership positions in all of our businesses and believe we hold global number-one market positions in most of them. We are recognized as an innovation leader and our solutions are critical in key R&D, quality control and manufacturing processes for customers in a wide range of industries including life sciences, food and chemicals. Our sales and service network is one of the most extensive in the industry. Our products are sold in more than 140 countries and we have a direct presence in approximately 40 countries. With proven growth strategies and a focus on execution, we have achieved a long-term track record of strong financial performance. For more information, please visit www.mt.com.

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 10-K.  All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under the caption "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.

 

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)






















Three months ended








Three months ended









September 30, 2019


% of sales




September 30, 2018


% of sales





















Net sales



$753,866

(a)


100.0





$734,846



100.0



Cost of sales



318,810



42.3





315,592



42.9



Gross profit



435,056



57.7





419,254



57.1






















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