Mettler-Toledo International Inc. Reports First Quarter 2020 Results

COLUMBUS, Ohio, May 7, 2020 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2020. Provided below are the highlights:

    --  Reported sales decreased 4% compared with the prior year.  In local
        currency, sales decreased 3% in the quarter as currency reduced sales
        growth by 1%.
    --  Net earnings per diluted share as reported (EPS) were $4.03, compared
        with $4.42 in the prior-year period.  Adjusted EPS was $4.00, a decrease
        of 2% over the prior-year amount of $4.10.  Adjusted EPS is a non-GAAP
        measure, and we have included a reconciliation to EPS on the last page
        of the attached schedules.

First Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, "The negative impact of COVID-19 to our local currency sales in China was significant. Local currency sales in other countries, particularly in Asia and Europe, were also negatively impacted by COVID-19. With the benefit of our margin and cost containment initiatives, we improved gross margins and maintained adjusted operating margins consistent with the prior year while adjusted EPS was slightly below the prior year."

GAAP Results
EPS in the quarter was $4.03, compared with the prior-year amount of $4.42.

Compared with the prior year, total reported sales decreased 4% to $649.2 million. By region, reported sales increased 2% in the Americas and decreased 7% in Europe and 10% in Asia/Rest of World. Earnings before taxes amounted to $118.5 million, compared with $125.7 million in the prior year.

Non-GAAP Results
Adjusted EPS was $4.00, a decrease of 2% over the prior-year amount of $4.10.

Compared with the prior year, total sales in local currency decreased 3% as currency reduced reported sales growth by 1%. By region, local currency sales increased 3% in the Americas and decreased 5% in Europe and 8% in Asia/Rest of World. Adjusted Operating Profit amounted to $141.3 million, a 4% decline from the prior-year amount of $147.8 million.

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


The Company stated that forecasting is very difficult given the significant uncertainty surrounding COVID-19 and ensuing impact to the global economic environment. The Company said that given this significant uncertainty, it will not provide an estimate for full year sales growth and Adjusted EPS for 2020. The Company noted that it expects to continue to benefit from its margin and productivity initiatives and has implemented temporary cost containment measures and reductions in discretionary spending.

For the second quarter 2020, based on management's current estimate of market conditions, the Company estimates that local currency sales will decline approximately -8% to -12%, and Adjusted EPS is forecasted to be in the range of $4.05 to $4.45.

The Company cautions that market dynamics and impacts related to COVID-19 are fluid and changes to the economic environment can happen quickly. The estimates for the second quarter 2020 include significant uncertainty and management acknowledges that market conditions are subject to change.

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.


Filliol concluded, "The health of our employees and customers is of utmost importance and we have undertaken protocols throughout the world to help ensure wellness and safety of all those involved. Our top priority remains providing instruments and services to our customers of which the majority serve essential markets such as pharmaceutical and food manufacturing. We have quickly adjusted our go-to-market sales approach and how we deliver service and launch new products given the unprecedented operating dynamics of the current market. Our margin and productivity initiatives remain on track and we have undertaken measures to temporarily reduce our cost structure. We are focused on being well positioned for the recovery and believe we can capitalize on our strong competitive advantages including our leading positions in fragmented markets, unique approach to sales and marketing which is a key differentiator in this environment, continued product innovation and strong culture known for our agility and execution. Although current market conditions are extremely challenging, we believe we can continue to gain share."

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, May 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 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

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. 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 and long-term impacts of the COVID-19 pandemic. 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." 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, customer demand, our competitive position, pricing, our supply chain, adequacy of our facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, planned research and development efforts and product introductions, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions and the impact of the COVID-19 pandemic on our businesses. 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 the uncertain duration and severity of the COVID-19 pandemic. See in particular "Factors Affecting Our Future Operating Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2019 and other reports filed with the SEC from time to time.



              (amounts in thousands except share data)


                                                                     Three months ended                                                                                                       Three months ended

                                                                                                      % of sales                                                                            % of sales

                                                                            March 31, 2020                                                                                           March 31, 2019

     Net sales                                                                 $649,162                          
           (a)                           100.0                                                       $679,452    100.0

     Cost of sales                                                              274,753                                                                 42.3                                                        291,133     42.8

     Gross profit                                                               374,409                                                                 57.7                                                        388,319     57.2

      Research and development                                                    34,387                                                                  5.3                                                         36,053      5.3

      Selling, general and
       administrative                                                            198,744                                                                 30.6                                                        204,425     30.1

     Amortization                                                                13,998                                                                  2.2                                                         12,222      1.8

     Interest expense                                                            10,219                                                                  1.6                                                          9,094      1.3

      Restructuring charges                                                        1,905                                                                  0.3                                                          1,523      0.2

      Other charges (income), net                                                (3,343)                                                               (0.5)                                                         (674)   (0.0)

      Earnings before taxes                                                      118,499                                                                 18.2                                                        125,676     18.5

     Provision for taxes                                                         20,384                                                                  3.1                                                         13,871      2.0

     Net earnings                                                               $98,115                                                                 15.1                                                       $111,805     16.5

      Basic earnings per common

     Net earnings                                                                 $4.08                                                                                                                              $4.50

      Weighted average number of
       common shares                                                          24,027,833                                                                                                                         24,851,340

      Diluted earnings per common

     Net earnings                                                                 $4.03                                                                                                                              $4.42

      Weighted average number of
       common                                                                 24,353,477                                                                                                                         25,310,525

        and common equivalent shares


            Local currency sales decreased 3% as compared to the same period in 2019.


                                                                     Three months ended                                                                                                       Three months ended

                                                                                                      % of sales                                                                            % of sales

                                                                            March 31, 2020                                                                                           March 31, 2019

      Earnings before taxes                                                     $118,499                                                                                                                           $125,676

     Amortization                                                                13,998                                                                                                                             12,222

     Interest expense                                                            10,219                                                                                                                              9,094

      Restructuring charges                                                        1,905                                                                                                                              1,523

      Other charges (income), net                                                (3,343)                                                                                                                             (674)

      Adjusted operating profit                                                 $141,278                          
           (b)                            21.8                                                       $147,841     21.8


            Adjusted operating profit decreased 4% as compared to the same period in 2019.

                                          METTLER-TOLEDO INTERNATIONAL INC.

                                          CONDENSED CONSOLIDATED BALANCE SHEETS

                (amounts in thousands)


                             March 31, 2020                                     December 31, 2019

     Cash and cash
      equivalents                                        $323,585                                   $207,785

      receivable, net                                     518,556                                    566,256

     Inventories                                          292,110                                    274,285

     Other current
      assets and prepaid
      expenses                                             66,614                                     61,321

     Total current
      assets                                            1,200,865                                  1,109,647

     Property, plant and
      equipment, net                                      742,651                                    748,657

     Goodwill and other
      assets, net                                         742,590                                    742,221

     Other non-current
      assets                                              199,674                                    188,796

     Total assets                                      $2,885,780                                 $2,789,321

      borrowings and
      maturities of
      long-term debt                                      $56,398                                    $55,868

     Trade accounts
      payable                                             168,515                                    185,592

     Accrued and other
      liabilities                                         454,925                                    513,052

     Total current
      liabilities                                         679,838                                    754,512

     Long-term debt                                     1,513,020                                  1,235,350

     Other non-current
      liabilities                                         386,525                                    378,679

     Total liabilities                                  2,579,383                                  2,368,541

      equity                                              306,397                                    420,780

     Total liabilities
      and shareholders'
      equity                                           $2,885,780                                 $2,789,321



                 (amounts in thousands)


                                                                                            Three months ended

              March 31,

                                                                                                          2020                   2019

      Cash flow from operating activities:

         Net earnings                                                                               $98,115               $111,805

          Adjustments to reconcile net earnings to

            net cash provided by operating activities:

     Depreciation                                                                                    10,133                  9,767

     Amortization                                                                                    13,998                 12,222

     Deferred tax benefit                                                                           (3,718)              (14,939)

     Other                                                                                            4,395                  4,482

      Decrease in cash resulting from changes in

        operating assets and liabilities                                                            (57,408)              (24,542)

                      Net cash provided by operating activities                                                 65,515                 98,795

      Cash flows from investing activities:

          Purchase of property, plant and equipment                                                 (18,835)              (22,332)

         Acquisitions                                                                               (5,610)

          Net hedging settlements on intercompany
           loans                                                                                    (10,008)                 4,802

                      Net cash used in investing activities                                               (34,453)              (17,530)

      Cash flows from financing activities:

         Proceeds from borrowings                                                                   832,268                302,707

         Repayments of borrowings                                                                 (551,319)             (271,646)

          Proceeds from exercise of stock options                                                      7,135                 28,990

         Repurchases of common stock                                                              (200,000)             (186,250)

          Acquisition contingent consideration
           payment                                                                                                        (10,000)

         Other financing activities                                                                   (800)

                      Net cash provided by (used in) financing
                       activities                                                                     87,284              (136,199)

      Effect of exchange rate changes on cash and
       cash equivalents                                                                              (2,546)                 3,304

      Net increase (decrease) in cash and cash
       equivalents                                                                                   115,800               (51,630)

     Cash and cash equivalents:

         Beginning of period                                                                        207,785                178,110

         End of period                                                                             $323,585               $126,480


      Net cash provided by operating activities                                                      $65,515                $98,795

          Payments in respect of restructuring
           activities                                                                                  1,626                  3,692

          Purchase of property, plant and equipment                                                 (18,835)              (22,332)

     Adjusted free cash flow                                                                        $48,306                $80,155





              Americas                                  Asia/RoW                Total

      U.S. Dollar Sales Growth

                                  Three Months Ended
                                   March 31, 2020                                                             (7%)                                     2%                (10%)          (4%)

      Local Currency Sales Growth

                                  Three Months Ended
                                   March 31, 2020                                                             (5%)                                     3%                 (8%)          (3%)



              Three months ended

              March 31,

                                                                                                           2020                                                2019            % Growth

      EPS as reported, diluted                                                                          $4.03                                               $4.42                (9%)

      Purchased intangible
       amortization, net of tax                                                                          0.12               (a)                              0.10     (a)

      Restructuring charges, net
       of tax                                                                                            0.06               (b)                              0.05     (b)

      Income tax expense                                                                               (0.21)              (c)                            (0.47)    (c)

      Adjusted EPS, diluted                                                                             $4.00                                               $4.10                (2%)


                (a)               Represents the EPS impact of purchased intangibles amortization, net of
                                   tax, of $2.8 million and $2.6 million for the three months ended March
                                   31, 2020 and 2019, respectively.

                (b)               Represents the EPS impact of restructuring charges of $1.9 million ($1.5
                                   million after tax) and $1.5 million ($1.2 million after tax) for the
                                   three months ended March 31, 2020 and 2019, 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, due to
                                   the timing of excess tax benefits associated with stock option exercises.

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