COLUMBUS, Ohio, July 28, 2016 /PRNewswire/ — Mettler-Toledo International Inc. (NYSE: MTD) today announced second quarter results for 2016. Provided below are the highlights:
Second Quarter Results
Olivier Filliol, President and Chief Executive Officer, stated, “Sales growth in the quarter was strong as we continued to have good demand in the Americas and very good growth in Asia / Rest of World, including China. Europe growth was solid. We improved gross and operating margins which contributed to an excellent growth in EPS. Finally, cash flow in the quarter was strong.”
EPS in the quarter was $2.93, compared with the prior-year amount of $2.73. Adjusted EPS was $3.22, an increase of 15% over the prior-year amount of $2.80.
Sales were $608.3 million, a 6% increase in local currency sales, compared with $582.1 million in the prior-year quarter. Reported sales increased 5% as currency reduced sales growth by 1% in the quarter. As compared to the prior year, local currency sales increased 6% in the Americas, 4% in Europe and 8% in Asia / Rest of World. Adjusted operating income amounted to $129.1 million, a 9% increase from the prior-year amount of $118.3 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 $115.5 million, compared with $105.2 million in the prior-year quarter.
Six Month Results
EPS for the six months was $5.32, compared with the prior-year amount of $4.91. Adjusted EPS was $5.68, an increase of 12% over the prior-year amount of $5.05.
Sales were $1.148 billion, a 5% increase in local currency sales, compared with $1.118 billion in the prior-year period. Reported sales increased 3%, as currency reduced sales growth by 2% in the period. By region, local currency sales increased 6% in the Americas, 2% in Europe and 6% in Asia / Rest of World as compared to the prior-year period. Adjusted operating income amounted to $231.1 million, a 7% increase from the prior-year period amount of $215.6 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 $151.2 million, compared with $163.8 million in the prior-year period.
Acquisition to Expand Secondary Brand Offering and Market Position in Weight Calibration
The Company announced that it intends to complete the acquisition of Henry Troemner, LLC (“Troemner”), a leading supplier of lab equipment, weights and weight calibration, in the third quarter of 2016. The Company stated that the acquisition will expand the offering of basic lab products which are sold through indirect distribution under the Company’s secondary brand, Ohaus. In addition, the Company will become a global leader in weights and weight calibration through the combination of Troemner’s U.S.-based business with the Company’s European business. Troemner is based in the Philadelphia area.
The Company updated its outlook for 2016 and noted that forecasting remains challenging. The Company also noted that the updated outlook includes the estimated impact of the Troemner acquisition.
Based on today’s assessment, management anticipates that local currency sales growth in 2016 will be in approximately 5% and Adjusted EPS is forecasted to be in the range of $14.40 to $14.50, an increase of 11% to 12%. This compares to previous guidance of local currency sales growth of approximately 4% and Adjusted EPS in the range of $14.25 to $14.35.
For the third quarter 2016, management anticipates that local currency sales growth will be in the range of 5% to 6% and Adjusted EPS is forecasted to be in the range of $3.65 to $3.70, an increase of 12% to 13%.
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.
Filliol concluded, “We saw improved momentum in our business during the quarter but our outlook for the rest of the year remains cautious given the uncertainty in the global economy. While we are guarded about economic factors that are outside our control, we are very encouraged with factors within our control – namely our strategic initiatives and ability to execute them. Specifically, our new product introductions, Field Turbo investments, Spinnaker sales and marketing programs and various productivity improvement measures are yielding tangible results. With strong execution, we believe we can continue to gain share.”
The Company will host a conference call to discuss its quarterly results today (Thursday, July 28) 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.
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. These statements involve known and unknown risks, uncertainties and other factors that may cause our or our businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. 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” or the negative of those terms or other comparable terminology. For a discussion of these risks and uncertainties, please see the discussion on forward-looking statements in our current report on Form 8-K to which this release has been furnished as an exhibit. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under the captions “Factors affecting our future operating results” and in the “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K for the most recently completed fiscal year, which describe risks and factors that could cause results to differ materially from those projected in those forward-looking statements.
SOURCE Mettler-Toledo International Inc.