EX-99.1 MTD 8-K Q3 2014



FOR IMMEDIATE RELEASE		Exhibit 99.1

METTLER-TOLEDO INTERNATIONAL INC. REPORTS

THIRD QUARTER 2014 RESULTS

- - Strong Sales and Earnings Growth - -

COLUMBUS, Ohio, USA - November 6, 2014 - Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2014. Provided below are the highlights:


•	Sales in local currency increased 6% in the quarter compared with the prior year. Reported sales also increased 6% as currency did not impact sales growth in the quarter.

•

Net earnings per diluted share as reported (EPS) were $2.89, compared with $2.43 in the third quarter of 2013. Adjusted EPS was $2.95, an increase of 13% over the prior-year amount of $2.60. 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.

Third Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, “Sales growth was better than expected in the quarter as demand in Europe was solid despite very good growth in the previous year period. Sales growth in Americas was strong and we had good growth in Asia / Rest of the World. EPS growth was strong as we benefited from our top line organic growth and our ongoing margin enhancement and cost control initiatives.”

EPS in the quarter was $2.89, compared with the prior-year amount of $2.43. Adjusted EPS was $2.95, an increase of 13% over the prior-year amount of $2.60.

Sales were $629.1 million, a 6% increase in local currency sales, compared with $591.7 million in the prior-year quarter. Reported sales also increased 6% as currency did not impact sales growth in the quarter. By region, local currency sales increased 4% in Europe, 7% in the Americas and 7% in Asia / Rest of World as compared to the prior year. Adjusted operating income amounted to $126.7 million, a 9% increase from the prior-year amount of $116.1 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 $127.3 million, compared with $122.8 million in the prior-year quarter.

Nine Month Results

EPS for the nine months was $7.30, compared with the prior-year amount of $6.35. Adjusted EPS was $7.51, an increase of 11% over the prior-year amount of $6.78.

Sales for the first nine months were $1.789 billion, a 5% increase in local currency sales, compared with $1.695 billion in the prior-year period. Reported sales increased 6%, and included a 1% benefit from currency. By region, local currency sales increased 5% in Europe, 5% in the Americas and 4% in Asia / Rest of World as compared to the prior year. Adjusted operating income amounted to $330.6 million, a 7% increase from the prior-year amount of $307.9 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 $278.2 million, compared with $237.4 million in the prior-year period.

Outlook

The Company noted that increased global economic uncertainty and uneven demand in some markets makes forecasting particularly challenging. Based on today’s assessment, management anticipates that local currency sales growth in the fourth quarter will be in the range of 4% to 5% and Adjusted EPS in the range of $4.12 to $4.17, an increase of 8% to 9%.

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For the full year 2014, local currency sales growth is expected to be in the range of 4% to 5% and Adjusted EPS in the range of $11.60 to $11.65, an increase of approximately 10%. This compares to previous guidance of Adjusted EPS of $11.45 to $11.60.

The Company stated that based on its assessment of market conditions today, management anticipates local currency sales growth in 2015 will be in the range of 4% to 5%. This sales growth will result in Adjusted EPS in the range of $12.80 to $13.05. Using the midpoint of the 2014 Adjusted EPS range, this reflects an increase of 10% to 12%.

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.

Conclusion

Filliol concluded, “With continued strong execution and if market conditions remain stable, we should produce solid sales and earnings growth for the remainder of this year and into 2015. The global economy remains uncertain and volatility will likely continue. Emerging markets are varied with China's growth path being tentative. Market growth in the United States appears quite solid while recent economic news from Europe has not been favorable. Globally, we believe we can continue to gain market share by capitalizing on our sales and marketing programs and new product launches. Our continued margin enhancement initiatives combined with strong cash flow generation and share repurchases will continue to drive earnings growth next year and beyond.”

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday November 6) 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.

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METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited)


		Three Months Ended				Three Months Ended
		September 30, 2014			% of sales	September 30, 2013		% of sales

Net sales		$	629,100	(a)	100.0	$	591,687	100.0
Cost of sales		285,549			45.4	273,114		46.2
Gross profit		343,551			54.6	318,573		53.8

Research and development		30,352			4.8	29,046		4.9
Selling, general and administrative		186,499			29.6	173,446		29.3
Amortization		7,198			1.1	6,675		1.1
Interest expense		5,991			1.0	5,557		0.9
Restructuring charges		1,050			0.2	5,532		0.9
Other charges (income), net		625			0.1	521		0.1
Earnings before taxes		111,836			17.8	97,796		16.6

Provision for taxes		26,840			4.3	23,470		4.0
Net earnings		$	84,996		13.5	$	74,326	12.6

Basic earnings per common share:
Net earnings		$	2.96			$	2.49
Weighted average number of common shares		28,732,152				29,818,218

Diluted earnings per common share:
Net earnings		2.89				$	2.43
Weighted average number of common and common equivalent shares		29,408,614				30,579,954

Note:
(a)	Local currency sales increased 6% as compared to the same period in 2013.

RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME

		Three Months Ended				Three Months Ended
		September 30, 2014			% of sales	September 30, 2013		% of sales

Earnings before taxes		$	111,836			$	97,796
Amortization		7,198				6,675
Interest expense		5,991				5,557
Restructuring charges		1,050				5,532
Other charges (income), net		625				521
Adjusted operating income		$	126,700	(b)	20.1	$	116,081	19.6

Note:
(b)	Adjusted operating income increased 9% as compared to the same period in 2013.

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METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited)


		Nine Months Ended				Nine Months Ended
		September 30, 2014			% of sales	September 30, 2013		% of sales

Net sales		$	1,788,555	(a)	100.0	$	1,694,720	100.0
Cost of sales		824,187			46.1	788,146		46.5
Gross profit		964,368			53.9	906,574		53.5

Research and development		91,974			5.1	85,749		5.1
Selling, general and administrative		541,793			30.3	512,905		30.3
Amortization		21,575			1.2	17,604		1.0
Interest expense		17,613			1.0	16,500		1.0
Restructuring charges		4,447			0.2	13,730		0.8
Other charges (income), net		1,348			0.1	2,281		0.1
Earnings before taxes		285,618			16.0	257,805		15.2

Provision for taxes		68,549			3.9	61,873		3.6
Net earnings		$	217,069		12.1	$	195,932	11.6

Basic earnings per common share:
Net earnings		$	7.47			$	6.52
Weighted average number of common shares		29,056,663				30,063,021

Diluted earnings per common share:
Net earnings		$	7.30			$	6.35
Weighted average number of common and common equivalent shares		29,747,321				30,836,160

Note:
(a)	Local currency sales increased 5% as compared to the same period in 2013.

RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME

		Nine Months Ended				Nine Months Ended
		September 30, 2014			% of sales	September 30, 2013		% of sales

Earnings before taxes		$	285,618			$	257,805
Amortization		21,575				17,604
Interest expense		17,613				16,500
Restructuring charges		4,447				13,730
Other charges (income), net		1,348				2,281
Adjusted operating income		$	330,601	(b)	18.5	$	307,920	18.2

Note:
(b)	Adjusted operating income increased 7% as compared to the same period in 2013.

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METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) (unaudited)


	September 30, 2014		December 31, 2013

Cash and cash equivalents	$	126,311	$	111,874
Accounts receivable, net	410,900		466,703
Inventories	219,714		210,414
Other current assets and prepaid expenses	115,987		124,996
Total current assets	872,912		913,987

Property, plant and equipment, net	512,091		514,438
Goodwill and other intangible assets, net	560,753		570,260
Other non-current assets	161,699		154,134
Total assets	$	2,107,455	$	2,152,819

Short-term borrowings and maturities of long-term debt	$	120,025	$	17,067
Trade accounts payable	129,172		145,993
Accrued and other current liabilities	401,687		401,128
Total current liabilities	650,884		564,188

Long-term debt	365,007		395,960
Other non-current liabilities	242,624		257,619
Total liabilities	1,258,515		1,217,767

Shareholders’ equity	848,940		935,052
Total liabilities and shareholders’ equity	$	2,107,455	$	2,152,819

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METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (unaudited)


	Three months ended						Nine months ended
	September 30,						September 30,
	2014			2013			2014			2013

Cash flow from operating activities:
Net earnings	$	84,996		$	74,326		$	217,069		$	195,932
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation	8,595			8,577			25,469			26,024
Amortization	7,198			6,675			21,575			17,604
Deferred tax benefit	(2,660		)	(2,120		)	(6,102		)	(7,807		)
Excess tax benefits from share-based payment arrangements	(890		)	(46		)	(10,459		)	(565		)
Other	3,306			3,136			9,883			9,396
Increase (decrease) in cash resulting from changes in
operating assets and liabilities	26,716			32,235			20,803			(3,169		)
Net cash provided by operating activities	127,261			122,783			278,238			237,415

Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	137			93			433			208
Purchase of property, plant and equipment	(24,288		)	(20,219		)	(61,408		)	(57,000		)
Acquisitions	(130		)	—			(3,385		)	(213		)
Net cash used in investing activities	(24,281		)	(20,126		)	(64,360		)	(57,005		)

Cash flows from financing activities:
Proceeds from borrowings	202,959			170,993			512,977			382,105
Repayments of borrowings	(181,918		)	(232,682		)	(438,529		)	(369,012		)
Proceeds from exercise of stock options	5,013			3,441			14,045			15,990
Excess tax benefits from share-based payment arrangements	890			46			10,459			565
Repurchases of common stock	(112,498		)	(72,569		)	(296,476		)	(217,413		)
Debt issuance costs	(914		)	(281		)	(941		)	(281		)
Other financing activities	236			(399		)	182			(1,569		)
Net cash used in financing activities	(86,232		)	(131,451		)	(198,283		)	(189,615		)

Effect of exchange rate changes on cash and cash equivalents	(1,449		)	799			(1,158		)	(275		)

Net increase (decrease) in cash and cash equivalents	15,299			(27,995		)	14,437			(9,480		)

Cash and cash equivalents:
Beginning of period	111,012			120,217			111,874			101,702
End of period	$	126,311		$	92,222		$	126,311		$	92,222

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

Net cash provided by operating activities	$	127,261		$	122,783		$	278,238		$	237,415
Excess tax benefits from share-based payment arrangements	890			46			10,459			565
Payments in respect of restructuring activities	2,019			4,886			7,977			14,193
Proceeds from sale of property, plant and equipment	137			93			433			208
Purchase of property, plant and equipment	(24,288		)	(20,219		)	(61,408		)	(57,000		)
Free cash flow	$	106,019		$	107,589		$	235,699		$	195,381

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METTLER-TOLEDO INTERNATIONAL INC. OTHER OPERATING STATISTICS


SALES GROWTH BY DESTINATION
(unaudited)

					Europe			Americas	Asia/RoW			Total

U.S. Dollar Sales Growth
	Three Months Ended September 30, 2014				5%			7%	8%			6%
	Nine Months Ended September 30, 2014				8%			5%	3%			6%

Local Currency Sales Growth
	Three Months Ended September 30, 2014				4%			7%	7%			6%
	Nine Months Ended September 30, 2014				5%			5%	4%			5%

RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)

		Three months ended							Nine months ended
		September 30,							September 30,
		2014			2013			% Growth	2014			2013			% Growth

EPS as reported, diluted		$	2.89		$	2.43		19%	$	7.30		$	6.35		15%

Restructuring charges, net of tax		0.03		(a)	0.14		(a)		0.11		(a)	0.34		(a)
Purchased intangible amortization, net of tax		0.03		(b)	0.03		(b)		0.10		(b)	0.09		(b)

Adjusted EPS, diluted		$	2.95		$	2.60		13%	$	7.51		$	6.78		11%

Notes:
(a)	Represents the EPS impact of restructuring charges of $1.1 million ($0.8 million after tax) and $5.5 million ($4.2 million after tax) for the three months ended September 30, 2014 and 2013, respectively and $4.4 million ($3.4 million after tax) and $13.7 million ($10.4 million after tax) for the nine months ended September 30, 2014 and 2013, respectively, which primarily include employee related costs.
(b)	Represents the EPS impact of purchased intangibles amortization, net of tax, of $1.0 million and $0.9 million for the three months ended September 30, 2014 and 2013, respectively and $2.8 million and $2.7 million for the nine months ended September 30, 2014 and 2013, respectively.

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