MTD Mettler Toledo International Inc

Mettler-Toledo International Inc. (NYSE: MTD) today announced second quarter results for 2024. Provided below are the highlights:

• Reported sales declined 4% compared with the prior year. In local currency, sales decreased 2% in the quarter as currency reduced sales growth by 2%.

• Net earnings per diluted share as reported (EPS) were $10.37, compared with $9.69 in the prior-year period. Adjusted EPS was $9.65, a decrease of 5% over the prior-year amount of $10.19. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.

Second Quarter Results

Patrick Kaltenbach, President and Chief Executive Officer, stated, “Our team continued to execute very well in the second quarter and delivered good Laboratory sales growth in Europe and the Americas. As expected, market conditions in China remained weak. We continue to benefit from our productivity and margin initiatives, which helped mitigate the impact of foreign exchange headwinds and supported better-than-expected financial results.”

GAAP Results

EPS in the quarter was $10.37, compared with the prior-year amount of $9.69. EPS included a one-time non-cash tax benefit of $1.07 per share.

Compared with the prior year, total reported sales declined 4% to $946.8 million. By region, reported sales increased 5% in Europe and 2% in the Americas and declined 16% in Asia/Rest of World. Earnings before taxes amounted to $243.2 million, compared with $263.4 million in the prior year.

Non-GAAP Results

Adjusted EPS was $9.65, a decrease of 5% over the prior-year amount of $10.19.

Compared with the prior year, total sales in local currency declined 2% as currency reduced sales growth by 2%. By region, local currency sales increased 6% in Europe and 2% in the Americas and declined 12% in Asia/Rest of World. Adjusted Operating Profit amounted to $284.1 million, compared with the prior-year amount of $307.7 million.

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

Six Month Results

GAAP Results

EPS was $18.60, compared with the prior-year amount of $18.15, and included the previously mentioned one-time non-cash tax benefit of $1.07 per share.

Compared with the prior year, total reported sales declined 2% to $1.873 billion. By region, reported sales increased 6% in Europe and 3% in the Americas and declined 14% in Asia/Rest of World. Earnings before taxes amounted to $463.7 million, compared with $490.0 million in the prior year.

Non-GAAP Results

Adjusted EPS was $18.53, a decrease of 2% over the prior-year amount of $18.82.

Compared with the prior year, total sales in local currency declined 1% as currency reduced sales growth by 1%. By region, local currency sales increased 6% in Europe and 2% in the Americas and declined 11% in Asia/Rest of World. Excluding the first quarter benefit from delayed fourth quarter 2023 shipments, year-to-date local currency sales declined 4%, including flat local currency sales in Europe and the Americas and a 12% decline in Asia/Rest of World. Adjusted Operating Profit amounted to $551.4 million, compared with the prior-year amount of $574.2 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 third quarter of 2024 will increase approximately 1%, and Adjusted EPS is forecast to be $9.90 to $10.05, representing growth of 1% to 3%. Included in the third quarter guidance is an estimated 1% headwind to Adjusted EPS growth due to adverse currency.

For the full year, management anticipates local currency sales in 2024 will increase approximately 2%, and Adjusted EPS is forecast to be in the range of $40.20 to $40.50, representing growth of approximately 6% to 8%. Included in the full year guidance is an estimated 2% headwind to Adjusted EPS growth due to adverse currency. This compares with previous local currency sales growth guidance of approximately 2% and Adjusted EPS guidance of $39.90 to $40.40.

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, “Market conditions globally have remained soft, especially in China. However, we expect our local currency sales to return to growth in the second half of the year primarily due to easier comparisons, as well as execution of our Spinnaker sales and marketing program and leveraging our innovative product portfolio. We remain focused on continuing to strengthen our Company for the future and believe we are in an excellent position to continue to gain market share and deliver future growth.”

Other Matters

The Company will host a conference call to discuss its quarterly results tomorrow morning (Friday, August 2) at 7:30 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

 

 

June 30, 2024

 

 

% of sales

 

June 30, 2023

 

% of sales

  Net sales

$

946,750

 

(a)

100.0

 

$

982,117

 

100.0

 

Cost of sales

 

381,082

 

40.3

 

 

398,574

 

40.6

 

Gross profit

 

565,668

 

59.7

 

 

583,543

 

59.4

 

  Research and development

 

45,771

 

4.8

 

 

47,245

 

4.8

 

Selling, general and administrative

 

235,796

 

24.9

 

 

228,594

 

23.3

 

Amortization

 

18,178

 

1.9

 

 

18,042

 

1.8

 

Interest expense

 

18,950

 

2.0

 

 

19,249

 

2.0

 

Restructuring charges

 

5,329

 

0.6

 

 

8,021

 

0.8

 

Other charges (income), net

 

(1,533

)

(0.2

)

 

(1,011

)

(0.1

)

Earnings before taxes

 

243,177

 

25.7

 

 

263,403

 

26.8

 

  Provision for taxes

 

21,363

 

2.3

 

 

49,476

 

5.0

 

Net earnings

$

221,814

 

23.4

 

$

213,927

 

21.8

 

  Basic earnings per common share: Net earnings

$

10.42

 

$

9.75

 

Weighted average number of common shares

 

21,279,006

 

 

21,944,645

 

  Diluted earnings per common share: Net earnings

$

10.37

 

$

9.69

 

Weighted average number of common

 

21,392,550

 

 

22,080,602

 

and common equivalent shares   Note:

(a) Local currency sales decreased 2% as compared to the same period in 2023.

  RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT   Three months ended Three months ended June 30, 2024 % of sales June 30, 2023 % of sales   Earnings before taxes

$

243,177

 

$

263,403

 

Amortization

 

18,178

 

 

18,042

 

Interest expense

 

18,950

 

 

19,249

 

Restructuring charges

 

5,329

 

 

8,021

 

Other charges (income), net

 

(1,533

)

 

(1,011

)

Adjusted operating profit

$

284,101

 

(b)

30.0

 

$

307,704

 

31.3

 

  Note:

(b) Adjusted operating profit decreased 8% as compared to the same period in 2023.

 

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited)  

Six months ended

 

 

 

 

Six months ended

 

 

June 30, 2024

 

 

% of sales

 

June 30, 2023

 

% of sales

  Net sales

$

1,872,699

 

(a)

100.0

 

$

1,910,855

 

100.0

 

Cost of sales

 

758,898

 

40.5

 

 

780,746

 

40.9

 

Gross profit

 

1,113,801

 

59.5

 

 

1,130,109

 

59.1

 

  Research and development

 

92,186

 

4.9

 

 

92,722

 

4.9

 

Selling, general and administrative

 

470,186

 

25.1

 

 

463,232

 

24.2

 

Amortization

 

36,406

 

1.9

 

 

35,821

 

1.9

 

Interest expense

 

38,182

 

2.0

 

 

37,433

 

2.0

 

Restructuring charges

 

14,993

 

0.8

 

 

12,295

 

0.6

 

Other charges (income), net

 

(1,876

)

(0.0

)

 

(1,407

)

(0.1

)

Earnings before taxes

 

463,724

 

24.8

 

 

490,013

 

25.6

 

  Provision for taxes

 

64,401

 

3.5

 

 

87,660

 

4.5

 

Net earnings

$

399,323

 

21.3

 

$

402,353

 

21.1

 

  Basic earnings per common share: Net earnings

$

18.70

 

$

18.28

 

Weighted average number of common shares

 

21,358,339

 

 

22,013,662

 

  Diluted earnings per common share: Net earnings

$

18.60

 

$

18.15

 

Weighted average number of common

 

21,468,995

 

 

22,164,394

 

and common equivalent shares   Note:

(a) Local currency sales decreased 1% as compared to the same period in 2023.

  RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT  

Six months ended

 

 

 

 

Six months ended

 

 

June 30, 2024

 

 

% of sales

 

June 30, 2023

 

% of sales

  Earnings before taxes

$

463,724

 

$

490,013

 

Amortization

 

36,406

 

 

35,821

 

Interest expense

 

38,182

 

 

37,433

 

Restructuring charges

 

14,993

 

 

12,295

 

Other charges (income), net

 

(1,876

)

 

(1,407

)

Adjusted operating profit

$

551,429

 

(b)

29.4

 

$

574,155

 

(b)

30.0

 

  Note:

(b) Adjusted operating profit decreased 4% as compared to the same period in 2023.

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

(unaudited)

    June 30, 2024 December 31, 2023   Cash and cash equivalents

$

70,810

 

$

69,807

 

Accounts receivable, net

 

634,710

 

 

663,893

 

Inventories

 

366,395

 

 

385,865

 

Other current assets and prepaid expenses

 

106,392

 

 

110,638

 

Total current assets

 

1,178,307

 

 

1,230,203

 

  Property, plant and equipment, net

 

768,664

 

 

803,374

 

Goodwill and other intangibles assets, net

 

933,513

 

 

955,537

 

Other non-current assets

 

368,680

 

 

366,441

 

Total assets

$

3,249,164

 

$

3,355,555

 

  Short-term borrowings and maturities of long-term debt

$

311,246

 

$

192,219

 

Trade accounts payable

 

199,462

 

 

210,411

 

Accrued and other current liabilities

 

770,474

 

 

778,452

 

Total current liabilities

 

1,281,182

 

 

1,181,082

 

  Long-term debt

 

1,746,638

 

 

1,888,620

 

Other non-current liabilities

 

374,106

 

 

435,791

 

Total liabilities

 

3,401,926

 

 

3,505,493

 

  Shareholders’ equity

 

(152,762

)

 

(149,938

)

Total liabilities and shareholders’ equity

$

3,249,164

 

$

3,355,555

 

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (unaudited)

 

 

 

 

 

 

 

Three months ended

 

Six months ended

June 30,

 

June 30,

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

  Cash flow from operating activities: Net earnings

$

221,814

 

$

213,927

 

$

399,323

 

$

402,353

 

Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation

 

12,351

 

 

12,194

 

 

24,873

 

 

24,217

 

Amortization

 

18,178

 

 

18,042

 

 

36,406

 

 

35,821

 

Deferred tax benefit

 

(1,774

)

 

(2,368

)

 

(3,837

)

 

(1,766

)

One-time non-cash discrete tax benefit

 

(22,982

)

 

-

 

 

(22,982

)

 

-

 

Other

 

4,541

 

 

4,195

 

 

9,263

 

 

8,222

 

Increase (decrease) in cash resulting from changes in operating assets and liabilities

 

25,378

 

 

20,821

 

 

4,447

 

 

(48,774

)

Net cash provided by operating activities

 

257,506

 

 

266,811

 

 

447,493

 

 

420,073

 

  Cash flows from investing activities: Proceeds from sale of property, plant and equipment

 

668

 

 

412

 

 

668

 

 

412

 

Purchase of property, plant and equipment

 

(23,810

)

 

(28,751

)

 

(41,201

)

 

(51,947

)

Proceeds from government funding (a)

 

-

 

 

1,264

 

 

-

 

 

1,264

 

Acquisitions

 

(1,473

)

 

-

 

 

(2,473

)

 

(613

)

Other investing activities

 

2,783

 

 

(15,837

)

 

12,239

 

 

(14,414

)

Net cash used in investing activities

 

(21,832

)

 

(42,912

)

 

(30,767

)

 

(65,298

)

Cash flows from financing activities: Proceeds from borrowings

 

572,715

 

 

475,903

 

 

1,022,578

 

 

1,080,921

 

Repayments of borrowings

 

(598,912

)

 

(455,215

)

 

(1,017,192

)

 

(958,731

)

Proceeds from exercise of stock options

 

6,305

 

 

7,614

 

 

8,136

 

 

19,087

 

Repurchases of common stock

 

(212,499

)

 

(250,000

)

 

(424,998

)

 

(499,999

)

Acquisition contingent consideration payment

 

-

 

 

(5,626

)

 

-

 

 

(5,626

)

Other financing activities

 

(1,910

)

 

(103

)

 

(1,910

)

 

(714

)

Net cash used in financing activities

 

(234,301

)

 

(227,427

)

 

(413,386

)

 

(365,062

)

  Effect of exchange rate changes on cash and cash equivalents

 

(754

)

 

(1,983

)

 

(2,337

)

 

(2,105

)

  Net increase (decrease) in cash and cash equivalents

 

619

 

 

(5,511

)

 

1,003

 

 

(12,392

)

  Cash and cash equivalents: Beginning of period

 

70,191

 

 

89,085

 

 

69,807

 

 

95,966

 

End of period

$

70,810

 

$

83,574

 

$

70,810

 

$

83,574

 

  RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW   Net cash provided by operating activities

$

257,506

 

$

266,811

 

$

447,493

 

$

420,073

 

Payments in respect of restructuring activities

 

5,966

 

 

5,415

 

 

15,680

 

 

7,398

 

Transition tax payment

 

10,723

 

 

8,042

 

 

10,723

 

 

8,042

 

Proceeds from sale of property, plant and equipment

 

668

 

 

412

 

 

668

 

 

412

 

Purchase of property, plant and equipment, net (a)

 

(23,810

)

 

(24,907

)

 

(41,201

)

 

(44,815

)

Acquisition payments (b)

 

-

 

 

4,775

 

 

-

 

 

4,775

 

Adjusted free cash flow

$

251,053

 

$

260,548

 

$

433,363

 

$

395,885

 

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 six months ended June 30, 2023 the Company received funding proceeds of $1.3 million. During the three and six months ended June 30, 2023 the related purchase of property, plant and equipment of $3.8 million and $7.1 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 three and six months ended June 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 June 30, 2024

2%

 

5%

 

(16%)

 

(4%)

Six Months Ended June 30, 2024

3%

 

6%

 

(14%)

 

(2%)

 

 

 

 

 

 

 

Local Currency Sales Growth

 

 

 

 

 

 

 

Three Months Ended June 30, 2024

2%

 

6%

 

(13%)

 

(2%)

Six Months Ended June 30, 2024

2%

 

6%

 

(11%)

 

(1%)

Note:

(a)

The Company estimates net sales for the six months ended June 30, 2024 benefited by 3% from recovering previously delayed shipments from the fourth quarter of 2023. By geographic destination, net sales benefited approximately 2% in the Americas, 6% in Europe and 1% in Asia/Rest of World.

 

RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS

(unaudited)  

Three months ended

 

Six months ended

June 30,

 

June 30,

 

2024

 

 

 

 

2023

 

 

 

% Growth

 

 

2024

 

 

 

 

2023

 

 

 

% Growth

  EPS as reported, diluted

$

10.37

 

$

9.69

 

7

%

$

18.60

 

$

18.15

 

2

%

  Purchased intangible amortization, net of tax

 

0.24

 

(a)

 

0.23

 

(a)

 

0.47

 

(a)

 

0.46

 

(a) Restructuring charges, net of tax

 

0.20

 

(b)

 

0.29

 

(b)

 

0.56

 

(b)

 

0.45

 

(b) Income tax expense

 

(1.16

)

(c)

 

(0.02

)

(c)

 

(1.10

)

(c)

 

(0.24

)

(c)   Adjusted EPS, diluted

$

9.65

 

$

10.19

 

-5

%

$

18.53

 

$

18.82

 

-2

%

Notes:

(a)

Represents the EPS impact of purchased intangibles amortization of $6.5 million ($5.0 million net of tax) and $6.7 million ($5.2 million net of tax) for the three months ended June 30, 2024 and 2023, and of $13.1 million ($10.1 million net of tax) and $13.3 million ($10.3 million net of tax) for the six months ended June 30, 2024 and 2023, respectively.

(b)

Represents the EPS impact of restructuring charges of $5.3 million ($4.3 million after tax) and $8.0 million ($6.5 million after tax) for the three months ended June 30, 2024 and 2023, and $15.0 million ($12.1 million after tax) and $12.3 million ($10.0 million after tax) for the six months ended June 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 six months ended June 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 three and six months ended June 30, 2024 for the one-time 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/20240801458990/en/

Adam Uhlman Head of Investor Relations METTLER TOLEDO Direct: 614-438-4794 adam.uhlman@mt.com