Mettler-Toledo Reports Third Quarter 2015 Results

COLUMBUS, Ohio, Nov. 5, 2015 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2015.  Provided below are the highlights:

  • Sales in local currency increased 3% in the quarter compared with the prior year.  Reported sales decreased 4% as currency reduced sales growth by 7% in the quarter.
  • Net earnings per diluted share as reported (EPS) were $3.16, compared with $2.89 in the prior- year period.  Adjusted EPS was $3.26, an increase of 11% over the prior-year amount of $2.95.  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 in the Americas was very strong with broad-based growth in most product lines.  Europe came in as expected and we continue to execute well in this region.  We continued to experience sales declines in China, Russia and Brazil, however our other emerging markets businesses performed well in the quarter.  We had very good margin expansion in the quarter and, despite currency headwinds, achieved solid EPS growth." 

EPS in the quarter was $3.16, compared with the prior-year amount of $2.89.  Adjusted EPS was $3.26, an increase of 11% over the prior-year amount of $2.95.  

Sales were $604.2 million, a 3% increase in local currency sales, compared with $629.1 million in the prior-year quarter.  Reported sales decreased 4% as currency reduced sales growth by 7% in the quarter.  By region, local currency sales increased 10% in the Americas, 1% in Europe and declined 1% in Asia / Rest of World as compared to the prior-year period.  Adjusted operating income amounted to $134.3 million, a 6% increase from the prior-year amount of $126.7 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 $126.0 million, compared with $127.3 million in the prior-year quarter.

Nine Month Results

EPS for the nine months was $8.07, compared with the prior-year amount of $7.30.  Adjusted EPS was $8.31, an increase of 11% over the prior-year amount of $7.51.  

Sales were $1.722 billion, a 4% increase in local currency sales, compared with $1.789 billion in the prior-year period.  Reported sales decreased 4% as currency reduced sales growth by 8% in the period.  By region, local currency sales increased 7% in the Americas, 3% in Europe and 1% in Asia / Rest of World as compared to the prior-year period.  Adjusted operating income amounted to $349.9 million, a 6% increase from the prior-year amount of $330.6 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 $289.8 million, compared with $278.2 million in the prior-year period.

Share Repurchase Authorization 

The Company has a $3.0 billion stock repurchase program of which $2.9 billion has been utilized.  The Company announced that the Board of Directors authorized an additional $1.5 billion to the share repurchase program.  Any amount remaining under the existing program will be incorporated into the new authorization.  Filliol commented, "The additional authorization allows us to continue the share repurchase program which has provided strong returns for our shareholders over many years.  We are confident in our future growth prospects and our balance sheet and cash flow generation remain very strong."  The Company expects the additional authorization will be utilized over the next several years.  The Company added that the repurchases will be made through open market transactions, and the amount and timing will depend on business and market conditions, stock price, trading restrictions, the level of acquisition activity and other factors. 

Outlook 

The Company updated its outlook and noted that forecasting remains challenging.  In particular, weak demand in Brazil, Russia and China remains and the timing of a recovery is uncertain.  Weak economic activity in those markets may also impact demand in other markets.  Foreign exchange rates also represent a headwind and greater volatility in rates may continue. 

Based on today's assessment, management anticipates that local currency sales growth in the fourth quarter 2015 will be approximately 2% and Adjusted EPS is forecasted to be in the range of $4.58 to $4.63, an increase of 8% to 9%. 

For the full year 2015, local currency sales growth is expected to be approximately 3% and Adjusted EPS in the range of $12.85 to $12.90, an increase of approximately 10%.  This compares to previous guidance of Adjusted EPS of $12.75 to $12.90.    

The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2016 will be in the range of 3% to 4%.  This sales growth is expected to result in Adjusted EPS in the range of $14.10 to $14.30, an increase of 9% to 11%.

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, "We remain cautious on China, Brazil and Russia as market conditions are challenging and a recovery is not yet visible.

To read full press release, please click here.

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