- Excellent Operating Margin - - Solid EPS Growth - COLUMBUS, Ohio,
Feb. 4 /PRNewswire-FirstCall/ -- Mettler-Toledo International Inc.
(NYSE:MTD) today announced fourth quarter results for 2009.
Provided below are the highlights: -- Sales in local currency
declined by 5% in the quarter compared with the prior year.
Reported sales growth was 0% due to a 5% benefit from currency. --
Net earnings per diluted share as reported (EPS) were $2.01,
compared with $1.84 in the fourth quarter of 2008. Adjusted EPS was
$2.09, a 5% increase over the prior-year amount of $2.00. 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. Fourth Quarter Results Olivier
Filliol, President and Chief Executive Officer, stated, "We saw
improved business conditions in some segments during the quarter,
particularly in China. With our solid market positions,
comprehensive product portfolio and extensive marketing programs,
we are benefiting as our markets gradually recover from the
economic downturn. Markets remain challenging in the Americas and
Europe in our core industrial and food retailing businesses.
Improved market conditions and the benefits of our cost reduction
programs helped us to generate record operating margins in the
quarter. We are pleased that we generated operating profit and EPS
growth in the quarter despite the decline in sales." EPS was $2.01,
compared with the prior-year amount of $1.84. Adjusted EPS was
$2.09, compared with the prior-year amount of $2.00. Sales were
$511.7 million, a 5% decline in local currency sales, as compared
with $509.7 million in the prior year. Reported sales growth was 0%
due to a 5% currency benefit. By region, local currency sales
decreased 10% in Europe and 5% in the Americas. In Asia / Rest of
World, local currency sales increased 3%. Adjusted operating income
amounted to $107.3 million, a 6% increase from the prior-year
amount of $101.0 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 $44.1
million, compared with $62.5 million in 2008. Full Year 2009
Results EPS was $5.03, compared with the prior-year amount of
$5.79. Adjusted EPS was $5.58, compared with the prior-year amount
of $5.84. Sales were $1.73 billion, a 10% decline in local currency
sales, as compared with $1.97 billion in 2008. Reported sales
declined by 12%, which includes a negative 2% currency impact. By
region, local currency sales decreased 14% in Europe, 11% in the
Americas and 2% in Asia / Rest of World. Adjusted operating income
amounted to $294.5 million, a 5% decrease from the prior-year
amount of $311.0 million. Cash flow from operations was $232.6
million, compared with $223.1 million in 2008. In the fourth
quarter of 2008, the Company announced a Cost Reduction Program
aimed at reducing costs by approximately $100 million annually. The
Program, which consisted primarily of work force reductions and
other cost efficiency measures, is substantially completed and will
meet its target. Total restructuring charges associated with the
Program are expected to be $40 million, of which $37.8 million has
been incurred to date. Bolt-On Acquisitions Recently, the Company
paid approximately $27 million for two small bolt-on acquisitions.
One acquisition, completed at the end of 2009, extends the
Company's offering in the Product Inspection business with vision
inspection technology. The other acquisition, which occurred in
early 2010, expands the Company's market penetration for Liquid
Handling products in Europe. The Company expects these acquisitions
will add modestly to sales growth in 2010 and will be neutral to
earnings. Share Repurchase Program The Company announced that late
in the fourth quarter 2009 it re-started its share repurchase
program which was suspended in the fourth quarter 2008 due to
uncertainty in the global economy and instability in the financial
markets. 2010 Outlook The Company stated that forecasting continues
to be challenging given the ongoing uncertainty in the global
economy. Based on today's assessment, management anticipates that
local currency sales growth in 2010 will be in the range of 3% to
5% and Adjusted EPS will be in the range of $5.90 to $6.15, an
increase of 6% to 10%. Adjusted EPS excludes purchased intangible
amortization, discrete tax items, restructuring charges and other
one-time items. For the first quarter 2010, the Company anticipates
local currency sales to be in the range of 1% to 3% and Adjusted
EPS in the range of $0.98 to $1.04, an increase of 3% to 9%. 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, "Although the business environment remains challenging,
we enter 2010 well positioned to capitalize on improving market
conditions. Our product pipeline is very strong, including numerous
launches in the coming months for our laboratory business as well
as products developed specifically for emerging markets. We have
continued to invest in sales and marketing programs throughout the
downturn, which we believe further strengthens our competitive
position. We expect to see growth in emerging markets; however
conditions in Europe and the Americas are likely to remain
challenging. We will continue to be diligent in our cost management
and will benefit from the cost reduction actions taken in 2009. Our
capital structure and cash flow generation are very strong, and we
have re-started the share repurchase program." Other Matters The
Company will host a conference call to discuss its fourth quarter
results today (Thursday, February 4) 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
http://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 is the world's largest
manufacturer and marketer of weighing instruments for use in
laboratory, industrial and food retailing applications. The Company
also holds top-three market positions in several related analytical
instruments and is a leading provider of automated chemistry
systems used in drug and chemical compound discovery and
development. In addition, the Company is the world's largest
supplier of metal detection and other end-of-line inspection
systems used in production and packaging and holds a leading
position in certain process analytics applications. Additional
information about METTLER TOLEDO can be found at
"http://www.mt.com/." 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. METTLER-TOLEDO
INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts
in thousands except share data) (unaudited) Three months ended %
Three months ended % December 31, 2009 of sales December 31, 2008
of sales Net sales $511,682 (a) 100.0 $509,687 100.0 Cost of sales
241,694 47.2 245,449 48.2 ------- ---- ------- ---- Gross profit
269,988 52.8 264,238 51.8 Research and development 23,731 4.6
24,771 4.9 Selling, general and administrative 138,968 27.2 138,495
27.2 Amortization 3,110 0.6 2,753 0.5 Interest expense 6,142 1.2
6,667 1.3 Other charges (income), net 3,205 0.7 6,361 1.2 ----- ---
----- --- Earnings before taxes 94,832 18.5 85,191 16.7 Provision
for taxes 25,394 4.9 22,267 4.4 ------ --- ------ --- Net earnings
$69,438 13.6 $62,924 12.3 ======= ==== ======= ==== Basic earnings
per common share: Net earnings $2.05 $1.88 Weighted average number
of common shares 33,815,082 33,553,946 Diluted earnings per common
share: Net earnings $2.01 $1.84 Weighted average number of common
and common equivalent shares 34,560,581 34,153,116 Note: (a) Local
currency sales decreased 5% as compared to the same period in 2008.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING
INCOME Three months ended % Three months ended % December 31, 2009
of sales December 31, 2008 of sales Earnings before taxes $94,832
$85,191 Amortization 3,110 2,753 Interest expense 6,142 6,667 Other
charges (income), net 3,205 (b) 6,361 (b) ----- ----- Adjusted
operating income $107,289 (c) 21.0 $100,972 19.8 ======== ========
Notes: (b) Includes restructuring charges of $3.0 million and $6.4
million which primarily represent severance and lease termination
costs during the three months ended December 31, 2009 and December
31, 2008, respectively. (c) Adjusted operating income increased 6%
as compared to the same period in 2008. METTLER-TOLEDO
INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts
in thousands except share data) (unaudited) Twelve months ended %
Twelve months ended % December 31, 2009 of sales December 31, 2008
of sales Net sales $1,728,853 (a) 100.0 $1,973,344 100.0 Cost of
sales 839,516 48.6 980,263 49.7 ------- ---- ------- ---- Gross
profit 889,337 51.4 993,081 50.3 Research and development 89,685
5.2 102,282 5.2 Selling, general and administrative 505,177 29.2
579,806 29.4 Amortization 11,844 0.7 10,553 0.5 Interest expense
25,117 1.4 25,390 1.3 Other charges (income), net 32,752 1.9 8,981
0.4 ------ --- ----- --- Earnings before taxes 224,762 13.0 266,069
13.5 Provision for taxes 52,169 3.0 63,291 3.2 ------ --- ------
--- Net earnings $172,593 10.0 $202,778 10.3 ======== ==== ========
==== Basic earnings per common share: Net earnings $5.12 $5.92
Weighted average number of common shares 33,716,353 34,250,310
Diluted earnings per common share: Net earnings $5.03 $5.79
Weighted average number of common and common equivalent shares
34,290,771 35,048,859 Note: (a) Local currency sales decreased 10%
as compared to the same period in 2008. RECONCILIATION OF EARNINGS
BEFORE TAXES TO ADJUSTED OPERATING INCOME Twelve months ended %
Twelve months ended % December 31, 2009 of sales December 31, 2008
of sales Earnings before taxes $224,762 $266,069 Amortization
11,844 10,553 Interest expense 25,117 (b) 25,390 Other charges
(income), net 32,752 (c) 8,981 (c) ------ ----- Adjusted operating
income $294,475 (d) 17.0 $310,993 15.8 ======== ======== Notes: (b)
Includes costs to tender $75 million of the Company's 4.85% $150
million Senior Notes and other financing-related costs totaling
$1.8 million during the twelve months ended December 31, 2009. (c)
Includes restructuring charges of $31.4 million and $6.4 million
which primarily represent severance and lease termination costs
during the twelve months ended December 31, 2009 and December 31,
2008, respectively. (d) Adjusted operating income decreased 5% as
compared to the same period in 2008. METTLER-TOLEDO INTERNATIONAL
INC. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands)
(unaudited) December 31, 2009 December 31, 2008 Cash and cash
equivalents $85,031 $78,073 Trade accounts receivable, net 312,998
348,614 Inventories 168,042 170,613 Other current assets and
prepaid expenses 80,036 73,565 ------ ------ Total current assets
646,107 670,865 Property, plant and equipment, net 316,334 285,008
Goodwill and other intangible assets, net 546,234 520,721 Other
non-current assets 210,112 187,462 ------- ------- Total assets
$1,718,787 $1,664,056 ========== ========== Short-term borrowings
$89,968 $12,492 Trade accounts payable 103,160 111,442 Accrued and
other liabilities 301,547 300,938 ------- ------- Total current
liabilities 494,675 424,872 Long-term debt 203,590 441,588 Other
non-current liabilities 309,384 294,349 ------- ------- Total
liabilities 1,007,649 1,160,809 Shareholders' equity 711,138
503,247 ------- ------- Total liabilities and shareholders' equity
$1,718,787 $1,664,056 ========== ========== METTLER-TOLEDO
INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands) (unaudited) Three months ended Twelve months
ended December 31, December 31, 2009 2008 2009 2008 Cash flows from
operating activities: Net earnings $69,438 $62,924 $172,593
$202,778 Adjustments to reconcile net earnings to net cash provided
by operating activities: Depreciation 7,708 6,793 29,634 28,987
Amortization 3,110 2,753 11,844 10,553 Deferred tax provision
19,539 12,094 3,766 4,137 Excess tax benefits from share-based
payment arrangements (1,528) (610) (2,137) (1,609) Other 3,048
1,232 11,533 5,339 Increase (decrease) in cash resulting from
changes in operating assets and liabilities (57,185) (22,662) 5,372
(27,036) ------- ------- ----- ------- Net cash provided by
operating activities 44,130 62,524 232,605 223,149 ------ ------
------- ------- Cash flows from investing activities: Proceeds from
sale of property, plant and equipment 102 123 2,081 13,307 Purchase
of property, plant and equipment (23,395) (23,548) (60,041)
(61,008) Acquisitions (14,450) (392) (14,620) (999) Net cash used
in investing activities (37,743) (23,817) (72,580) (48,700) -------
------- ------- ------- Cash flows from financing activities:
Proceeds from borrowings 63,364 70,892 261,436 306,602 Repayments
of borrowings (98,864) (138,443) (422,812) (259,566) Debt issuance
costs (50) (264) (670) (3,349) Debt extinguishment costs - -
(1,316) - Proceeds from exercise of stock options 4,995 1,909
11,068 5,228 Repurchases of common stock (5,988) (4,375) (5,988)
(229,671) Excess tax benefits from share- based payment
arrangements 1,528 610 2,137 1,609 Other financing activities (314)
372 (1,298) 615 ---- --- ------ --- Net cash used in financing
activities (35,329) (69,299) (157,443) (178,532) ------- -------
-------- -------- Effect of exchange rate changes on cash and cash
equivalents 25 (2,374) 4,376 934 Net (decrease) increase in cash
and cash equivalents (28,917) (32,966) 6,958 (3,149) Cash and cash
equivalents: Beginning of period 113,948 111,039 78,073 81,222 End
of period $85,031 $78,073 $85,031 $78,073 ======= ======= =======
======= RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES
TO FREE CASH FLOW Net cash provided by operating activities $44,130
$62,524 $232,605 $223,149 Excess tax benefits from share-based
payment arrangements 1,528 610 2,137 1,609 Payments in respect of
restructuring activities 3,649 667 22,187 667 Proceeds from sale of
property, plant and equipment 102 123 2,081 13,307 Purchase of
property, plant and equipment (23,395) (23,548) (60,041) (61,008)
------- ------- ------- ------- Free cash flow $26,014 $40,376
$198,969 $177,724 ======= ======= ======== ======== METTLER-TOLEDO
INTERNATIONAL INC. OTHER OPERATING STATISTICS LOCAL CURRENCY SALES
GROWTH BY DESTINATION (unaudited) Europe Americas Asia/RoW Total
------ -------- -------- ----- Three Months Ended December 31, 2009
-10% -5% 3% -5% Twelve Months Ended December 31, 2009 -14% -11% -2%
-10% RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED
EPS (unaudited) Three months ended Twelve months ended December 31,
December 31, ------------ ------------ % % 2009 2008 Growth 2009
2008 Growth ---- ---- ------ ---- ---- ------ EPS as reported,
diluted $2.01 $1.84 9% $5.03 $5.79 -13% Restructuring charges, net
of tax 0.06 (a) 0.14 (a) 0.67 (a) 0.14 (a) Debt extinguishment and
financing costs, net of tax - - 0.04 (b) - Purchased intangible
amortization, net of tax 0.02 (c) 0.02 (c) 0.08 (c) 0.08 (c)
Discrete tax items - - (0.24)(d) (0.17)(e) --- --- ----- -----
Adjusted EPS, diluted $2.09 $2.00 5% $5.58 $5.84 -4% ===== =====
===== ===== Notes: (a) Represents the EPS impact of restructuring
charges of $3.0 million ($2.2 million after tax) and 31.4 million
($23.0 million after tax) for the three months and twelve months
ended December 31, 2009, respectively and $6.4 million ($4.7
million after tax) for the three and twelve months ended December
31, 2008, which primarily include severance and lease termination
costs. (b) Represents the EPS impact of costs to tender $75 million
of the Company's 4.85% $150 million Senior Notes and other
financing-related costs totaling $1.8 million ($1.3 million after
tax) for the twelve months ended December 31, 2009. (c) Represents
the EPS impact of purchased intangibles amortization, net of tax,
of $0.7 million for both the three months ended December 31, 2009
and 2008 and $2.7 million for both the twelve months ended December
31, 2009 and 2008. (d) Discrete tax items in 2009 pertain to the
EPS impact of a net tax benefit of $8.3 million primarily related
to the favorable resolution of certain prior year tax matters
recorded during the first quarter. (e) Discrete tax items in 2008
pertain to the EPS impact of a discrete tax benefit of $2.5 million
related to favorable withholding tax law changes in China recorded
during the first quarter and a discrete net tax benefit of $3.5
million related to the closure of certain tax matters recorded
during the third quarter. DATASOURCE: Mettler-Toledo International
Inc. CONTACT: Mary T. Finnegan, Treasurer, Investor Relations,
Mettler-Toledo International Inc., +1-614-438-4748, Fax:
+1-614-438-4646 Web Site: http://www.mt.com/
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