Mettler-Toledo International Inc. (NYSE: MTD) today announced
third quarter results for 2024. Provided below are the
highlights:
- Reported and local currency sales increased 1% compared with
the prior year.
- Net earnings per diluted share as reported (EPS) were $9.96,
compared with $9.21 in the prior-year period. Adjusted EPS was
$10.21, an increase of 4% over the prior-year amount of $9.80.
Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is
included on the last page of the attached schedules.
Third Quarter Results
Patrick Kaltenbach, President and Chief Executive Officer,
stated, “We experienced good growth during the third quarter in our
Laboratory business and had particularly strong growth in Service.
While China grew modestly this quarter, market conditions remain
challenging, particularly in the Industrial sector. We are very
pleased with our team’s strong execution of our growth and margin
expansion initiatives, which supported good earnings growth.”
GAAP Results
EPS in the quarter was $9.96, compared with the prior-year
amount of $9.21.
Compared with the prior year, total reported sales rose 1% to
$954.5 million. By region, reported sales increased 2% in Europe
and 4% in Asia/Rest of World and declined 1% in the Americas.
Earnings before taxes amounted to $259.0 million, compared with
$251.2 million in the prior year.
Non-GAAP Results
Adjusted EPS was $10.21, an increase of 4% over the prior-year
amount of $9.80.
Compared with the prior year, total sales in local currency
increased 1%. By region, local currency sales increased 1% in
Europe and 4% in Asia/Rest of World and declined 1% in the
Americas. Adjusted Operating Profit amounted to $296.6 million,
compared with the prior-year amount of $296.0 million.
Adjusted EPS and Adjusted Operating Profit are non-GAAP
measures. Reconciliations to the most comparable GAAP measures are
provided in the attached schedules.
Nine Month Results
GAAP Results
EPS was $28.55, compared with the prior-year amount of $27.37,
and included a non-cash discrete tax benefit of $1.07 per
share.
Compared with the prior year, total reported sales declined 1%
to $2.827 billion. By region, reported sales increased 5% in Europe
and 1% in the Americas and declined 8% in Asia/Rest of World.
Earnings before taxes amounted to $722.7 million, compared with
$741.2 million in the prior year.
Non-GAAP Results
Adjusted EPS was $28.74, compared with the prior-year amount of
$28.63.
Compared with the prior year, total sales in local currency were
flat as currency reduced sales growth by 1%. By region, local
currency sales increased 4% in Europe and 1% in the Americas and
declined 6% in Asia/Rest of World. Excluding the first quarter
benefit from delayed fourth quarter 2023 shipments, year-to-date
local currency sales declined 2%, including flat sales in Europe
and the Americas and a 7% decline in Asia/Rest of World. Adjusted
Operating Profit amounted to $848.0 million, compared with the
prior-year amount of $870.1 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
Management cautions that market conditions are uncertain and
could change quickly. Based on today's assessment, management
anticipates local currency sales for the fourth quarter of 2024
will increase approximately 8%, which includes a benefit of
approximately 6% from the previously disclosed shipping delays in
the fourth quarter of 2023. Adjusted EPS is forecast to be $11.63
to $11.78, representing growth of 24% to 25%.
For the full year, management anticipates local currency sales
will increase approximately 2%, which includes a benefit of
approximately 3% from the previously disclosed shipping delays in
the fourth quarter of 2023 that benefited the first quarter of
2024. Adjusted EPS is forecast to be in the range of $40.35 to
$40.50, representing growth of approximately 6%. This compares with
previous local currency sales growth guidance of approximately 2%
and Adjusted EPS guidance of $40.20 to $40.50. Included in the 2024
guidance is an estimated 2% headwind to Adjusted EPS growth due to
adverse currency.
The Company stated that based on its assessment of market
conditions today, management anticipates local currency sales
growth of approximately 3% in 2025, including a headwind to growth
of approximately 1.5% due to the previously mentioned 2023 shipping
delays that benefited 2024. This is expected to result in Adjusted
EPS in the range of $41.85 to $42.50, representing growth of
approximately 4% to 5%.
The Company does not provide GAAP financial measures on a
forward-looking basis because we are unable to predict with
reasonable certainty and without unreasonable effort the timing and
amount of future restructuring and other non-recurring items.
Conclusion
Kaltenbach concluded, “We continue to execute very well and will
benefit from the prior-year shipping delays in the fourth quarter;
however, global market conditions remain soft. We have introduced
many exciting innovations, as well as next generations of our
Spinnaker sales and marketing and SternDrive productivity programs,
over the past year. We also continue to leverage our business
diversity and ability to provide value throughout our customers’
value chain to identify and capture growth opportunities and
believe we are very well positioned to gain market share and
deliver good earnings growth in the future.”
Other Matters
The Company will host a conference call to discuss its quarterly
results tomorrow morning (Friday, November 8) at 8:30 a.m. Eastern
Time. To listen to a live webcast or replay of the call, visit the
investor relations page on the Company’s website at
investor.mt.com. The presentation referenced on 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.
Forward-Looking Statements Disclaimer
You should not rely on forward-looking statements to predict our
actual results. Our actual results or performance may be materially
different than reflected in forward-looking statements because of
various risks and uncertainties, including statements about
expected revenue growth, inflation, ongoing developments related to
Ukraine, and the Israel-Hamas war. 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.”
We make forward-looking statements about future events or our
future financial performance, including earnings and sales growth,
earnings per share, strategic plans and contingency plans, growth
opportunities or economic downturns, our ability to respond to
changes in market conditions, planned research and development
efforts and product introductions, adequacy of facilities, access
to and the costs of raw materials, shipping and supplier costs,
gross margins, customer demand, our competitive position, pricing,
capital expenditures, cash flow, tax-related matters, the impact of
foreign currencies, compliance with laws, effects of acquisitions,
and the impact of inflation, ongoing developments related to
Ukraine, and the Israel-Hamas war on our business.
Our forward-looking statements may not be accurate or complete,
and we do not intend to update or revise them in light of actual
results. New risks also periodically arise. Please consider the
risks and factors that could cause our results to differ materially
from what is described in our forward-looking statements, including
inflation, ongoing developments related to Ukraine, and the
Israel-Hamas war. See in particular “Factors Affecting Our Future
Operating Results” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations.”
METTLER-TOLEDO INTERNATIONAL
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(amounts in thousands except
share data)
(unaudited)
Three months ended
Three months ended
September 30, 2024
% of sales
September 30, 2023
% of sales
Net sales
$
954,535
(a)
100.0
$
942,462
100.0
Cost of sales
382,068
40.0
382,923
40.6
Gross profit
572,467
60.0
559,539
59.4
Research and development
47,117
4.9
46,127
4.9
Selling, general and administrative
228,777
24.0
217,447
23.1
Amortization
18,243
1.9
18,314
1.9
Interest expense
18,599
1.9
20,278
2.2
Restructuring charges
2,631
0.3
7,385
0.8
Other charges (income), net
(1,852
)
(0.2
)
(1,171
)
(0.1
)
Earnings before taxes
258,952
27.2
251,159
26.6
Provision for taxes
47,436
5.0
49,528
5.2
Net earnings
$
211,516
22.2
$
201,631
21.4
Basic earnings per common share: Net earnings
$
10.01
$
9.26
Weighted average number of common shares
21,139,674
21,776,944
Diluted earnings per common share: Net earnings
$
9.96
$
9.21
Weighted average number of common and common equivalent shares
21,242,343
21,886,482
Note:
(a) Local currency sales
increased 1% as compared to the same period in 2023.
RECONCILIATION OF EARNINGS
BEFORE TAXES TO ADJUSTED OPERATING PROFIT
Three months ended
Three months ended
September 30, 2024
% of sales
September 30, 2023
% of sales
Earnings before taxes
$
258,952
$
251,159
Amortization
18,243
18,314
Interest expense
18,599
20,278
Restructuring charges
2,631
7,385
Other charges (income), net
(1,852
)
(1,171
)
Adjusted operating profit
$
296,573
(b)
31.1
$
295,965
31.4
Note:
(b) Adjusted operating profit was
flat as compared to the same period in 2023.
METTLER-TOLEDO INTERNATIONAL
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(amounts in thousands except
share data)
(unaudited)
Nine months ended
Nine months ended
September 30, 2024
% of sales
September 30, 2023
% of sales
Net sales
$
2,827,234
(a)
100.0
$
2,853,317
100.0
Cost of sales
1,140,966
40.4
1,163,669
40.8
Gross profit
1,686,268
59.6
1,689,648
59.2
Research and development
139,303
4.9
138,849
4.9
Selling, general and administrative
698,963
24.7
680,679
23.9
Amortization
54,649
1.9
54,135
1.9
Interest expense
56,781
2.0
57,711
2.0
Restructuring charges
17,624
0.6
19,680
0.7
Other charges (income), net
(3,728
)
(0.1
)
(2,578
)
(0.2
)
Earnings before taxes
722,676
25.6
741,172
26.0
Provision for taxes
111,837
4.0
137,188
4.8
Net earnings
$
610,839
21.6
$
603,984
21.2
Basic earnings per common share: Net earnings
$
28.69
$
27.54
Weighted average number of common shares
21,288,202
21,933,889
Diluted earnings per common share: Net earnings
$
28.55
$
27.37
Weighted average number of common and common equivalent shares
21,396,456
22,067,398
Note:
(a) Local currency sales were
flat as compared to the same period in 2023.
RECONCILIATION OF EARNINGS
BEFORE TAXES TO ADJUSTED OPERATING PROFIT
Nine months ended
Nine months ended
September 30, 2024
% of sales
September 30, 2023
% of sales
Earnings before taxes
$
722,676
$
741,172
Amortization
54,649
54,135
Interest expense
56,781
57,711
Restructuring charges
17,624
19,680
Other charges (income), net
(3,728
)
(2,578
)
Adjusted operating profit
$
848,002
(b)
30.0
$
870,120
(b)
30.5
Note:
(b) Adjusted operating profit
decreased 3% as compared to the same period in 2023.
METTLER-TOLEDO INTERNATIONAL
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(amounts in thousands)
(unaudited)
September 30, 2024
December 31, 2023
Cash and cash equivalents
$
71,574
$
69,807
Accounts receivable, net
637,202
663,893
Inventories
375,813
385,865
Other current assets and prepaid expenses
113,643
110,638
Total current assets
1,198,232
1,230,203
Property, plant and equipment, net
790,447
803,374
Goodwill and other intangibles assets, net
934,923
955,537
Other non-current assets
396,226
366,441
Total assets
$
3,319,828
$
3,355,555
Short-term borrowings and maturities of long-term debt
$
185,824
$
192,219
Trade accounts payable
202,859
210,411
Accrued and other current liabilities
796,285
778,452
Total current liabilities
1,184,968
1,181,082
Long-term debt
1,891,661
1,888,620
Other non-current liabilities
397,552
435,791
Total liabilities
3,474,181
3,505,493
Shareholders’ equity
(154,353
)
(149,938
)
Total liabilities and shareholders’ equity
$
3,319,828
$
3,355,555
METTLER-TOLEDO INTERNATIONAL
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
Three months ended
Nine months ended
September 30,
September 30,
2024
2023
2024
2023
Cash flow from operating activities: Net earnings
$
211,516
$
201,631
$
610,839
$
603,984
Adjustments to reconcile net earnings to net cash provided by
operating activities: Depreciation
12,836
12,189
37,709
36,406
Amortization
18,243
18,314
54,649
54,135
Deferred tax benefit
(1,224
)
(2,689
)
(5,061
)
(4,455
)
One-time non-cash discrete tax benefit
-
-
(22,982
)
-
Other
4,359
4,228
13,622
12,450
Increase (decrease) in cash resulting from changes in operating
assets and liabilities
8,936
30,623
13,383
(18,151
)
Net cash provided by operating activities
254,666
264,296
702,159
684,369
Cash flows from investing activities: Proceeds from sale of
property, plant and equipment
65
256
733
668
Purchase of property, plant and equipment
(21,421
)
(20,960
)
(62,622
)
(72,907
)
Proceeds from government funding (a)
-
1,332
-
2,596
Acquisitions
-
-
(2,473
)
(613
)
Other investing activities
(16,287
)
(11,523
)
(4,048
)
(25,937
)
Net cash used in investing activities
(37,643
)
(30,895
)
(68,410
)
(96,193
)
Cash flows from financing activities: Proceeds from borrowings
539,071
489,052
1,561,649
1,569,973
Repayments of borrowings
(559,670
)
(508,497
)
(1,576,862
)
(1,467,228
)
Proceeds from exercise of stock options
14,203
147
22,339
19,234
Repurchases of common stock
(212,499
)
(223,999
)
(637,497
)
(723,998
)
Acquisition contingent consideration payment
-
(2,141
)
-
(7,767
)
Other financing activities
(3
)
(112
)
(1,913
)
(826
)
Net cash used in financing activities
(218,898
)
(245,550
)
(632,284
)
(610,612
)
Effect of exchange rate changes on cash and cash equivalents
2,639
(1,750
)
302
(3,855
)
Net increase (decrease) in cash and cash equivalents
764
(13,899
)
1,767
(26,291
)
Cash and cash equivalents: Beginning of period
70,810
83,574
69,807
95,966
End of period
$
71,574
$
69,675
$
71,574
$
69,675
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES
TO ADJUSTED FREE CASH FLOW Net cash provided by operating
activities
$
254,666
$
264,296
$
702,159
$
684,369
Payments in respect of restructuring activities
4,086
7,544
19,766
14,942
Transition tax payment
-
-
10,723
8,042
Proceeds from sale of property, plant and equipment
65
255
733
667
Purchase of property, plant and equipment, net (a)
(21,421
)
(20,362
)
(62,622
)
(65,177
)
Acquisition payments (b)
-
-
-
4,775
Adjusted free cash flow
$
237,396
$
251,733
$
670,759
$
647,618
Notes: (a) In September 2021, the Company entered into an
agreement with the U.S. Department of Defense to increase the
domestic production capacity of pipette tips and enhance
manufacturing automation and logistics. The Company received
funding of $35.8 million in prior years, which offset capital
expenditures. During the three and nine months ended September 30,
2023 the Company received funding proceeds of $1.3 million and $2.6
million, respectively. During the three and nine months ended
September 30, 2023 the related purchase of property, plant and
equipment of $0.6 million and $7.7 million, respectively, are
excluded from Adjusted free cash flow. (b) Includes $4.4 million of
the PendoTECH contingent consideration payment that was reported in
net cash provided by operating activities as required by U.S. GAAP
for the nine months ended September 30, 2023.
METTLER-TOLEDO INTERNATIONAL INC. OTHER OPERATING
STATISTICS SALES GROWTH BY DESTINATION
(unaudited) Americas Europe Asia/RoW Total
U.S. Dollar Sales Growth Three Months Ended September 30, 2024
(1
%)
2
%
4
%
1
%
Nine Months Ended September 30, 2024
1
%
5
%
(8
%)
(1
%)
Local Currency Sales Growth Three Months Ended September 30,
2024
(1
%)
1
%
4
%
1
%
Nine Months Ended September 30, 2024
1
%
4
%
(6
%)
0
%
Note: (a) The Company estimates net sales for the nine
months ended September 30, 2024 benefited by 2% from recovering
previously delayed shipments from the fourth quarter of 2023. By
geographic destination, net sales benefited approximately 1% in the
Americas, 4% in Europe and 1% in Asia/Rest of World.
RECONCILIATION OF DILUTED EPS
AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
Three months ended
Nine months ended
September 30,
September 30,
2024
2023
% Growth
2024
2023
% Growth
EPS as reported, diluted
$
9.96
$
9.21
8
%
$
28.55
$
27.37
4
%
Purchased intangible amortization, net of tax
0.23
(a)
0.24
(a)
0.71
(a)
0.70
(a) Restructuring charges, net of tax
0.10
(b)
0.27
(b)
0.67
(b)
0.72
(b) Income tax expense
(0.08
)
(c)
0.08
(c)
(1.19
)
(c)
(0.16
)
(c) Adjusted EPS, diluted
$
10.21
$
9.80
4
%
$
28.74
$
28.63
0
%
Notes: (a) Represents the EPS impact of purchased
intangibles amortization of $6.4 million ($5.0 million after tax)
and $6.7 million ($5.2 million after tax) for the three months
ended September 30, 2024 and 2023, and $19.5 million ($15.1 million
after tax) and $20.0 million ($15.4 million after tax) for the nine
months ended September 30, 2024 and 2023, respectively. (b)
Represents the EPS impact of restructuring charges of $2.6 million
($2.1 million after tax) and $7.4 million ($6.0 million after tax)
for the three months ended September 30, 2024 and 2023, and $17.6
million ($14.3 million after tax) and $19.7 million ($15.9 million
after tax) for the nine months ended September 30, 2024 and 2023,
respectively, which primarily include employee related costs. (c)
Represents the EPS impact of the difference between our quarterly
and estimated annual tax rate before non-recurring discrete items
during the three and nine months ended September 30, 2024 and 2023
due to the timing of excess tax benefits associated with stock
option exercises. Also includes a reported EPS reduction of $1.07
for the nine months ended September 30, 2024 for a non-cash
discrete tax benefit resulting from the reduction of uncertain tax
position liabilities related to the settlement of a tax audit.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107177327/en/
Adam Uhlman Head of Investor Relations METTLER TOLEDO Direct:
614-438-4794 adam.uhlman@mt.com
Grafico Azioni Mettler Toledo (NYSE:MTD)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Mettler Toledo (NYSE:MTD)
Storico
Da Dic 2023 a Dic 2024
