COLUMBUS, Ohio, July 24, 2014 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced second quarter results for 2014. Provided below are the highlights:
- Sales in local currency increased by 4% in the quarter compared with the prior year. Reported sales increased 5% which included a 1% benefit from currency.
- Net earnings per diluted share as reported (EPS) were $2.49, compared with $2.24 in the second quarter of 2013. Adjusted EPS was $2.57, an increase of 9% over the prior-year amount of $2.35. 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.
Second Quarter Results
Olivier Filliol, President and Chief Executive Officer, stated, "Market conditions were good in the Americas and solid in Europe, and we are benefitting from our growth strategies. China's market conditions continued to stabilize, which contributed to improved growth in Asia / Rest of the World in the quarter. Despite currency headwinds, we generated solid EPS growth as we continue to benefit from our various margin and cost control initiatives."
EPS in the quarter was $2.49, compared with the prior-year amount of $2.24. Adjusted EPS was $2.57, an increase of 9% over the prior-year amount of $2.35.
Sales were $608.8 million, a 4% increase in local currency sales, compared with $578.7 million in the prior-year quarter. Reported sales increased 5%, and included a 1% benefit from currency in the quarter. By region, local currency sales increased 3% in Europe, 5% in the Americas and 3% in Asia / Rest of World as compared to the prior year. Adjusted operating income amounted to $112.9 million, a 6% increase from the prior-year amount of $106.4 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 $108.1 million, compared with $91.0 million in the prior-year quarter.
Six Month Results
EPS for the six months was $4.41, compared with the prior-year amount of $3.93. Adjusted EPS was $4.56, an increase of 9% over the prior-year amount of $4.19.
Sales for the first six months were $1.159 billion, a 4% increase in local currency sales, compared with $1.103 billion in the prior-year period. Reported sales increased 5%, and included a 1% benefit from currency. By region, local currency sales increased 6% in Europe, 4% in the Americas and 2% in Asia / Rest of World as compared to the prior year. Adjusted operating income amounted to $203.9 million, a 6% increase from the prior-year amount of $191.8 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 $151.0 million, compared with $114.6 million in the prior-year period.
Outlook
The Company updated its outlook for 2014 and noted that uncertainty in demand in some markets makes forecasting challenging. Based on today's assessment, management anticipates that local currency sales growth in 2014 will be approximately 4% and Adjusted EPS will be in the range of $11.45 to $11.60, an increase of 8% to 10%. This guidance remains the same as the Company's previously provided guidance.
The Company stated that based on its assessment of market conditions today, management anticipates local currency sales growth in the third quarter of 2014 will be approximately 4%. This sales growth will result in Adjusted EPS in the range of $2.82 to $2.87, an increase of 8% to 10%.
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 cautiously optimistic that market conditions will remain favorable. We expect to benefit from relatively easier comparisons in China in the second half of the year, but will face more difficult comparisons in Europe. Globally, we are seeking growth opportunities by leveraging existing field resources and making selected additions to capitalize on penetration opportunities. We will also continue to benefit from our strong sales and marketing programs and excellent pipeline of new products. As always, we remain focused on execution and are convinced we can continue to gain market share."
Other Matters
The Company will host a conference call to discuss its quarterly results today (Thursday July 24) 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.
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