Mettler-Toledo International: Reports Q2-2024 Results

Columbus / OH. (mti) Mettler-Toledo International Inc. announced second quarter results for 2024. Highlights: Reported sales declined 4 percent compared with the prior year. In local currency, sales decreased 2 percent in the quarter as currency reduced sales growth by 2 percent. Net earnings per diluted share as reported (EPS) were USD 10.37, compared with USD 9.69 in the prior-year period. Adjusted EPS was USD 9.65, a decrease of 5 percent over the prior-year amount of USD 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: «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 USD 10.37, compared with the prior-year amount of USD 9.69. EPS included a one-time non-cash tax benefit of USD 1.07 per share. Compared with the prior year, total reported sales declined 4 percent to USD 946.8 million. By region, reported sales increased 5 percent in Europe and 2 percent in the Americas and declined 16 percent in Asia/Rest of World. Earnings before taxes amounted to USD 243.2 million, compared with USD 263.4 million in the prior year.

Non-GAAP Results: Adjusted EPS was USD 9.65, a decrease of 5 percent over the prior-year amount of USD 10.19. Compared with the prior year, total sales in local currency declined 2 percent as currency reduced sales growth by 2 percent. By region, local currency sales increased 6 percent in Europe and 2 percent in the Americas and declined 12 percent in Asia/Rest of World. Adjusted Operating Profit amounted to USD 284.1 million, compared with the prior-year amount of USD 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 USD 18.60, compared with the prior-year amount of USD 18.15, and included the previously mentioned one-time non-cash tax benefit of USD 1.07 per share. Compared with the prior year, total reported sales declined 2 percent to USD 1.873 billion. By region, reported sales increased 6 percent in Europe and 3 percent in the Americas and declined 14 percent in Asia/Rest of World. Earnings before taxes amounted to USD 463.7 million, compared with USD 490.0 million in the prior year.

Non-GAAP Results: Adjusted EPS was USD 18.53, a decrease of 2 percent over the prior-year amount of USD 18.82. Compared with the prior year, total sales in local currency declined 1 percent as currency reduced sales growth by 1 percent. By region, local currency sales increased 6 percent in Europe and 2 percent in the Americas and declined 11 percent in Asia/Rest of World. Excluding the first quarter benefit from delayed fourth quarter 2023 shipments, year-to-date local currency sales declined 4 percent, including flat local currency sales in Europe and the Americas and a 12 percent decline in Asia/Rest of World. Adjusted Operating Profit amounted to USD 551.4 million, compared with the prior-year amount of USD 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 percent, and Adjusted EPS is forecast to be USD 9.90 to USD 10.05, representing growth of 1 percent to 3 percent. Included in the third quarter guidance is an estimated 1 percent headwind to Adjusted EPS growth due to adverse currency.

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

Patrick Kaltenbach: «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.»