Packaging

Mettler-Toledo International Inc. Reports Third Quarter 2010 Results

Friday 05. November 2010 - - Another Quarter of Excellent Local Currency Sales Growth - Strong Growth in Operating Profit and EPS Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2010. Provided below are the highlights: -- Sales in local currency increased by 14% in the quarter compared with the prior year. Reported sales growth increased 13%, which includes a negative 1% currency impact.

– Another Quarter of Excellent Local Currency Sales Growth
– Strong Growth in Operating Profit and EPS
Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2010. Provided below are the highlights:
— Sales in local currency increased by 14% in the quarter compared with
the prior year. Reported sales growth increased 13%, which includes a
negative 1% currency impact.
— Net earnings per diluted share as reported (EPS) were $1.82, compared
with $1.21 in the third quarter of 2009. Adjusted EPS was $1.71, a 26%
increase over the prior-year amount of $1.36. 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, “We experienced another quarter of better-than-expected sales growth driven by strong momentum in Asia / Rest of World and the Americas. This momentum reflects a positive market environment combined with strong execution of our business strategies. I am also very pleased with the strong growth in operating profit and EPS growth.”
EPS was $1.82, compared with the prior-year amount of $1.21. Adjusted EPS was $1.71, an increase of 26% over the prior-year amount of $1.36.
Sales were $490.2 million, a 14% increase in local currency sales, compared with $435.7 million in the prior year. Reported sales growth was 13%, which included a negative 1% currency impact. By region, local currency sales increased 7% in Europe, 15% in the Americas and 25% in Asia / Rest of World. Adjusted operating income amounted to $85.8 million, a 17% increase from the prior-year amount of $73.2 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 $86.0 million, compared with $79.6 million in 2009.
Nine-Month Results
EPS was $4.41, compared with the prior-year amount of $3.02. Adjusted EPS was $4.39, a 26% increase over the prior-year amount of $3.48.
Sales were $1.375 billion, a 12% increase in local currency sales, compared with $1.217 billion in the prior year. Reported sales growth was 13%, which included a 1% benefit from currency. By region, local currency sales increased 5% in Europe, 14% in the Americas and 23% in Asia / Rest of World. Adjusted operating income amounted to $226.1 million, a 21% increase from the prior-year amount of $187.2 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 $205.3 million, compared with $188.5 million in 2009.
Increase to Share Repurchase Program
The Company announced that the Board of Directors has authorized a $750 million increase to the share repurchase program. The Company currently has a $1.5 billion stock repurchase program through the end of December 2010 of which $1.24 billion has been utilized. Any amount remaining under the existing program at the end of the year will be incorporated into the new authorization. Filliol commented, “We are confident in our growth prospects now and into the future. Our balance sheet and cash flow generation remain very strong and we continue to believe that the repurchase program is an effective means to return capital to shareholders.” The Company expects the new 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
Based on today’s assessment, management anticipates that local currency sales growth in the fourth quarter will be in the range of 5% to 7% and Adjusted EPS in the range of $2.25 to $2.30, an increase of 8% to 10%.
For the full year 2010, local currency sales growth is expected to be in the range of 10% to 11% and Adjusted EPS in the range of $6.62 to $6.67, an increase of 19% to 20%. This compares with previous guidance of Adjusted EPS in the range of $6.35 to $6.45. Adjusted EPS excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items.
The Company stated that based on their assessment of market conditions today, management anticipates local currency sales growth in 2011 will be in the range of 4% to 6% while Adjusted EPS will be in the range of $7.35 to $7.55. Using the midpoint of the 2010 Adjusted EPS range, this reflects an increase of 11% to 14%.
While the Company has provided an outlook for Adjusted EPS, it has not provided an outlook for EPS. EPS guidance would require an estimate of non-recurring items, which are not yet known.
Conclusion
Filliol concluded, “We remain optimistic about the strength of our franchise and our ability to continue to gain market share. In emerging markets, we enjoy strong leadership positions and are executing well on our proven growth strategies. In developed markets, our innovative approaches to sales and marketing, combined with a strong product line-up, have allowed us to capture share. Finally, our cost-effective operating model is benefiting from our low-cost country manufacturing and sourcing. In summary, we are confident in our ability to execute our strategic initiatives but remain cautious given the uncertainty in the global economy.”