COLUMBUS, Ohio, Nov. 3, 2011 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2011. Provided below are the highlights:
- Sales in local currency increased by 15% in the quarter compared with the prior year. Reported sales increased 23%, which includes an 8% benefit from currency.
- Net earnings per diluted share as reported (EPS) were $2.09, compared with $1.82 in the third quarter of 2010. Adjusted EPS was $2.01, an 18% increase over the prior-year amount of $1.71. 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, "Business demand was strong and broad-based in the quarter, with most product lines and geographies achieving excellent sales growth. Despite tough currency headwinds on earnings, we had very good growth in operating profit and EPS."
EPS was $2.09, compared with the prior-year amount of $1.82. Adjusted EPS was $2.01, an increase of 18% over the prior-year amount of $1.71.
Sales were $601.1 million, a 15% increase in local currency sales, compared with $490.2 million in the prior year. Reported sales growth was 23%, which included an 8% benefit from currency. By region, local currency sales increased 16% in Europe, 10% in the Americas and 21% in Asia / Rest of World. Adjusted operating income amounted to $98.5 million, a 15% increase from the prior-year amount of $85.8 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 $84.1 million, compared with $86.0 million in the prior year.
Nine Month Results
EPS was $5.31, compared with the prior-year amount of $4.41. Adjusted EPS was $5.35, an increase of 22% over the prior-year amount of $4.39.
Sales were $1.661 billion, a 14% increase in local currency sales, compared with $1.375 billion in the prior year. Reported sales growth was 21%, which included a 7% benefit from currency. By region, local currency sales increased 14% in Europe, 10% in the Americas and 21% in Asia / Rest of World. Adjusted operating income amounted to $266.8 million, an 18% increase from the prior-year amount of $226.1 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 $177.7 million, compared with $205.3 million in the prior year.
Outlook
Based on today's assessment, management anticipates that local currency sales growth in the fourth quarter will be in the range of 4% to 6% and Adjusted EPS in the range of $2.75 to $2.80, an increase of 7% to 9%. The Company stated that Adjusted EPS guidance for the fourth quarter (and full year 2011) is negatively impacted due to unfavorable currency rates, principally due to the strengthening of the Swiss franc versus the euro.
For the full year 2011, local currency sales growth is expected to be in the range of 11% to 12% and Adjusted EPS in the range of $8.09 to $8.14, an increase of 17%. This compares with previous guidance of Adjusted EPS in the range of $7.95 to $8.05.
The Company stated that based on its assessment of market conditions today, management anticipates local currency sales growth in 2012 will be in the range of 4% to 7% while Adjusted EPS will be in the range of $9.00 to $9.30. Using the midpoint of the 2011 Adjusted EPS range, this reflects an increase of 11% to 15%.
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 are very pleased with our competitive position and the strong momentum in our business. We expect to continue to strengthen our leadership positions and grow faster than the underlying markets. However, we recognize we are not immune to economic weakness and remain alert to signs of market weakness. Based on market conditions today, we are assuming that economic growth will continue but at a slower rate than 2011. Most importantly, we remain confident in the strength of the franchise, the execution of our strategies and our ability to compete effectively in our markets."
Other Matters
The Company will host a conference call to discuss its quarterly results today (Thursday, November 3) 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.
