EX-99.1 2 ex-991mtd8xkq22024.htm EX-99.1 Document
FOR IMMEDIATE RELEASEExhibit 99.1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
SECOND QUARTER 2024 RESULTS


COLUMBUS, Ohio, USA – August 1, 2024 – 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.
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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
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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.”
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METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
Three months endedThree months ended
June 30, 2024% of salesJune 30, 2023% of sales
Net sales$946,750 (a)100.0$982,117 100.0
Cost of sales381,082 40.3398,574 40.6
Gross profit565,668 59.7583,543 59.4
Research and development45,771 4.847,245 4.8
Selling, general and administrative235,796 24.9228,594 23.3
Amortization18,178 1.918,042 1.8
Interest expense18,950 2.019,249 2.0
Restructuring charges5,329 0.68,021 0.8
Other charges (income), net(1,533)(0.2)(1,011)(0.1)
Earnings before taxes243,177 25.7263,403 26.8
Provision for taxes21,363 2.349,476 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 shares21,279,006 21,944,645 
Diluted earnings per common share:
Net earnings$10.37 $9.69 
Weighted average number of common and common equivalent shares21,392,550 22,080,602 
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 endedThree months ended
June 30, 2024% of salesJune 30, 2023% of sales
Earnings before taxes$243,177 $263,403 
Amortization18,178 18,042 
Interest expense18,950 19,249 
Restructuring charges5,329 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.

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METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
Six months endedSix months ended
June 30, 2024% of salesJune 30, 2023% of sales
Net sales$1,872,699 (a)100.0$1,910,855 100.0
Cost of sales758,898 40.5780,746 40.9
Gross profit1,113,801 59.51,130,109 59.1
Research and development92,186 4.992,722 4.9
Selling, general and administrative470,186 25.1463,232 24.2
Amortization36,406 1.935,821 1.9
Interest expense38,182 2.037,433 2.0
Restructuring charges14,993 0.812,295 0.6
Other charges (income), net(1,876)—(1,407)(0.1)
Earnings before taxes463,724 24.8490,013 25.6
Provision for taxes64,401 3.587,660 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 shares21,358,339 22,013,662 
Diluted earnings per common share:
Net earnings$18.60 $18.15 
Weighted average number of common and common equivalent shares21,468,995 22,164,394 
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 endedSix months ended
June 30, 2024% of salesJune 30, 2023% of sales
Earnings before taxes$463,724 $490,013 
Amortization36,406 35,821 
Interest expense38,182 37,433 
Restructuring charges14,993 12,295 
Other charges (income), net(1,876)(1,407)
Adjusted operating profit$551,429 (b)29.4$574,155 30.0
Note:
(b)Adjusted operating profit decreased 4% as compared to the same period in 2023.

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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
June 30, 2024December 31, 2023
Cash and cash equivalents$70,810 $69,807 
Accounts receivable, net634,710 663,893 
Inventories366,395 385,865 
Other current assets and prepaid expenses106,392 110,638 
Total current assets1,178,307 1,230,203 
Property, plant and equipment, net768,664 803,374 
Goodwill and other intangible assets, net933,513 955,537 
Other non-current assets368,680 366,441 
Total assets$3,249,164 $3,355,555 
Short-term borrowings and maturities of long-term debt$311,246 $192,219 
Trade accounts payable199,462 210,411 
Accrued and other current liabilities770,474 778,452 
Total current liabilities1,281,182 1,181,082 
Long-term debt1,746,638 1,888,620 
Other non-current liabilities374,106 435,791 
Total liabilities3,401,926 3,505,493 
Shareholders’ equity(152,762)(149,938)
Total liabilities and shareholders’ equity$3,249,164 $3,355,555 
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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)



(unaudited)
Three months endedSix months ended
June 30,June 30,
2024202320242023
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:
Depreciation12,351 12,194 24,873 24,217 
Amortization18,178 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)— 
Other4,541 4,195 9,263 8,222 
Increase (decrease) in cash resulting from changes in
operating assets and liabilities25,378 20,821 4,447 (48,774)
Net cash provided by operating activities257,506 266,811 447,493 420,073 
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment668 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 activities2,783 (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 borrowings572,715 475,903 1,022,578 1,080,921 
Repayments of borrowings(598,912)(455,215)(1,017,192)(958,731)
Proceeds from exercise of stock options6,305 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 equivalents619 (5,511)1,003 (12,392)
Cash and cash equivalents:
    Beginning of period70,191 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 activities5,966 5,415 15,680 7,398 
Transition tax payment10,723 8,042 10,723 8,042 
Proceeds from sale of property, plant and equipment668 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.
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METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
SALES GROWTH BY DESTINATION
(unaudited)
AmericasEuropeAsia/RoWTotal
U.S. Dollar Sales Growth
Three Months Ended June 30, 20242%5%(16)%(4)%
Six Months Ended June 30, 20243%6%(14)%(2)%
Local Currency Sales Growth
Three Months Ended June 30, 20242%6%(13)%(2)%
Six Months Ended June 30, 20242%6%(11)%(1)%
Note:
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
Three months endedSix months ended
June 30,June 30,
20242023% Growth20242023% Growth
EPS as reported, diluted$10.37 $9.69 7%$18.60 $18.15 2%
Purchased intangible amortization, net of tax0.24 (a)0.23 (a)0.47 (a)0.46 (a)
Restructuring charges, net of tax0.20 (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.



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