EXHIBIT 99.1
CONTACTS:
Dennis Braun, Chief Financial Officer
Phone: ++41 1 944 3345
Fax: ++41 1 944 2470
Mary T. Finnegan, Treasurer / Investor Relations
Phone: ++1 614 438 4748
Fax: ++1 614 438 4646
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2003 RESULTS
- - SALES AND OPERATING PROFIT ON PLAN - -
- - COST-RESTRUCTURING PROGRAM ON TRACK - -
GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - April 24, 2003 -
Mettler-Toledo International Inc. (NYSE: MTD) today announced net earnings
before restructuring charge of $16.7 million, or $0.37 per share on a
diluted basis, for the quarter ended March 31, 2003. This compares to net
earnings per share of $0.41 in the first quarter of 2002. For the quarter
ended March 31, 2003, net earnings after restructuring charge were $12.9
million, or $0.29 per share, and includes an after-tax restructuring charge
of $3.8 million, or $0.08 per share, to reflect the final union settlement
on the closure of the Company's French manufacturing facility.
Sales for the quarter were $291.8 million, compared with $273.0 million for
the quarter ended March 31, 2002. This represents a 7% increase in reported
sales, consisting of a 9% benefit from currency and a 2% decline in local
currency sales. The Company's adjusted operating income before
restructuring amounted to $30.4 million, or 10.4% of sales, compared with
$32.6 million, or 11.9% of sales, in the same period of 2002. On a constant
currency basis with 2002, operating margins were 11.6%. The Company's
adjusted operating income after the above-mentioned restructuring charge
amounted to $24.9 million.
Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated,
"We are pleased to have met our financial targets for the quarter. As
expected, our local currency sales were down modestly versus the prior
year. This is principally due to our European food retailing business,
which was down substantially due to the final euro conversion sales that
took place in the first quarter of 2002. We achieved our operating profit
target and had another quarter of improved cash flow generation."
Spoerry continued, "Our cost-restructuring programs and associated cost
savings remain well on track. We began manufacturing in our new facility in
China, which will absorb production from the facilities we are closing in
France and the United States. We have reached an agreement with the unions
in France, which finalizes the restructuring program enacted in the second
quarter of 2002. As previously announced, we have taken a charge to reflect
the settlement with the French unions. The facility in France will close by
the end of June, while the facility in the U.S. will close by the end of
September. With the completion of this restructuring program, we will have
eliminated approximately $15 million to $20 million from our cost
structure."
Spoerry concluded, "Given global uncertainties, we remain cautious about
the worldwide economy. Our business in Asia continues to be a strong growth
driver, and demand for our regulatory compliance services remains robust.
We are focused on our key strategic initiatives, including launching many
new products in the second part of the year, achieving savings from our
global procurement effort and further penetrating our customer base through
market management. The execution of these initiatives, combined with the
benefits of our cost-restructuring efforts, will strengthen our franchise
during these challenging economic times."
For the quarter ended March 31, 2003, the Company reported local currency
sales growth of 12% in Asia and the Rest of World and a sales decline of 2%
in the Americas and 6% in Europe.
The Company has reconciled its diluted earnings per share before
restructuring charge to its diluted earnings per share to be reported in
the Company's Form 10-Q for the quarter ended March 31, 2003 on the
comparative financial information schedule attached to this press release.
Additional operational data has also been reconciled to the most comparable
U.S. GAAP measure in the schedules attached to this press release.
The Company will host a conference call to discuss its first quarter
results today (Thursday, April 24th) 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.
METTLER TOLEDO is a leading global provider of precision instruments and
services. The Company is the world's largest manufacturer of weighing
solutions for laboratory, industrial and food retailing applications.
Within its laboratory offering, it is a market leader in two of the most
frequently used instruments in a lab - balances and pipettes. It holds
top-three market positions in several related analytical instruments,
including titrators, pH meters and thermal analysis. It is also a top
provider of automated chemistry systems used in drug discovery. The
Company's industrial instruments range from terminals and weighing sensors
for production and quality control to end-of-line inspection systems for
packaged goods, where it leads the market. For food retailers, it offers
PC-based networked solutions for the management of fresh goods. Additional
information about METTLER TOLEDO can be found on the World Wide Web at
"www.mt.com."
Statements in this discussion which are not historical facts may be
considered "forward-looking statements" that involve risks and uncertainties.
For a discussion of these risks and uncertainties, which could cause actual
events or results to differ from those contained in the forward-looking
statements, see Exhibit 99.1 to the Company's Annual Report on Form 10-K
for the most recently ended fiscal year.
METTLER-TOLEDO INTERNATIONAL INC.
COMPARATIVE FINANCIAL INFORMATION
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA)
Three months ended Three months ended
March 31, 2003 March 31, 2002
(unaudited) % (unaudited) %
Net sales $291,808 100.0 (a) $272,957 100.0
Cost of sales 158,150 54.2 147,820 54.2
---------------- ------- ---------------- -------
Gross profit 133,658 45.8 125,137 45.8
Research and development 18,470 6.3 16,757 6.1
Selling, general and administrative 84,805 29.1 75,824 27.8
---------------- ------- ---------------- -------
Adjusted operating income 30,383 10.4 32,556 11.9
Restructuring charge 5,444 1.9 (b)(c) - 0.0
---------------- ------- ---------------- -------
Adjusted operating income after
restructuring charge 24,939 8.5 32,556 11.9
Amortization 2,827 1.0 1,774 0.6
Interest expense 3,905 1.3 4,391 1.6
Other charges (income), net (269) (0.1)(c) (286) (0.1)
---------------- ------- ---------------- -------
Earnings before taxes 18,476 6.3 26,677 9.8
Provisions for taxes 5,541 1.9 8,003 3.0
---------------- ------- ---------------- -------
Net earnings $12,935 4.4 $18,674 6.8
================ ======= ================ =======
Diluted per share amounts:
Net earnings before restructuring charge $ 0.37 $ 0.41
Restructuring charge, net of tax benefit (0.08) -
---------------- ----------------
Net earnings $ 0.29 $ 0.41
================ ================
Weighted average number of common shares 45,288,823 45,517,058
Reconciliation of net earnings:
Net earnings before restructuring charge $16,746 $18,674
Restructuring charge, net of tax benefit of $1,633 (3,811) -
---------------- ----------------
Net earnings $12,935 $18,674
================ ================
<FN>
Notes:
(a) Local currency sales growth as compared to the same period in 2002 was
-2%.
(b) Relates to the final union settlement on the facility closure in
France. As described in Note 14 in the Company's Annual Report on Form
10-K for the year ended December 31, 2002, in accordance with U.S.
GAAP, the Company accrued the minimum contractual payment required by
French law in the restructuring charge taken in the second quarter of
2002.
(c) On the following page, the restructuring charge is included in Other
charges (income), net.
</FN>
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA)
As Reported As Reported
----------- -----------
Three Months Ended Three Months Ended
March 31, 2003 March 31, 2002
(unaudited) (unaudited)
Net sales $ 291,808 $ 272,957
Cost of sales 158,150 147,820
------------- -------------
Gross profit 133,658 125,137
Research and development 18,470 16,757
Selling, general and administrative 84,805 75,824
Amortization 2,827 1,774
Interest expense 3,905 4,391
Other charges (income), net 5,175 (a) (286)
------------- -------------
Earnings before taxes 18,476 26,677
Provision for taxes 5,541 (b) 8,003
------------- -------------
Net earnings $12,935 $18,674
============= =============
Basic earnings per common share:
Net earnings $ 0.29 $ 0.42
Weighted average number of common shares 44,393,312 44,173,850
Diluted earnings per common share:
Net earnings $ 0.29 $ 0.41
Weighted average number of common shares 45,288,823 45,517,058
<FN>
Notes:
(a) Includes a restructuring charge of $5,444 ($3,811 after tax) related
to the final union settlement on the facility closure in France. As
described in Note 14 in the Company's Annual Report on Form 10-K for
the year ended December 31, 2002, in accordance with U.S. GAAP, the
Company accrued the minimum contractual payment required by French law
in the restructuring charge taken in the second quarter of 2002.
(b) Includes a tax benefit of $1,633 in respect of (a) above.
</FN>
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
March 31, December 31,
2003 2002
(unaudited)
Cash and cash equivalents $ 32,021 $ 31,427
Accounts receivable, net 221,181 231,673
Inventories, net 156,713 150,441
Other current assets 70,106 62,186
--------------- ---------------
Total current assets 480,021 475,727
Property, plant and equipment, net 216,198 217,754
Goodwill and other intangibles 535,032 537,792
Other non-current assets 73,176 72,120
--------------- ---------------
Total assets $1,304,427 $1,303,393
=============== ===============
Short-term debt $ 50,422 $ 50,578
Accounts payable 62,735 73,072
Accrued and other current liabilities 244,558 244,014
--------------- ---------------
Total current liabilities 357,715 367,664
Long-term debt 259,477 262,093
Other non-current liabilities 171,302 171,250
--------------- ---------------
Total liabilities 788,494 801,007
Shareholders' equity 515,933 502,386
--------------- ---------------
Total liabilities and shareholders' equity $1,304,427 $1,303,393
=============== ===============
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
(AMOUNTS IN THOUSANDS)
CONDENSED CONSOLIDATED CASH FLOW STATEMENT Three months ended Three months ended
March 31, 2003 March 31, 2002
(unaudited) (unaudited)
Cash flows from operating activities:
Net earnings $12,935 $18,674
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 6,302 5,967
Amortization 2,827 1,774
Other 196 (59)
Increase (decrease) in cash resulting from changes in working capital (13,589) (14,742)
------------ --------------
Net cash provided by operating activities 8,671 11,614
------------ --------------
Cash flow from investing activities:
Proceeds from sale of property, plant and equipment 95 38
Purchase of property, plant and equipment (4,737) (9,333)
Acquisitions (197) (16,483)
------------ --------------
Net cash used in investing activities (4,839) (25,778)
------------ --------------
Cash flow from financing activities:
Proceeds from borrowings 21,024 31,274
Repayment of borrowings (24,426) (21,595)
Proceeds from option exercises 159 873
------------ --------------
Net cash provided by (used in) investing activities (3,243) 10,552
------------ --------------
Effect of exchange rate changes on cash and cash equivalents 5 (648)
------------ --------------
Net increase (decrease) in cash and cash equivalents 594 (4,260)
Cash and cash equivalents:
Beginning of period 31,427 27,721
------------ --------------
End of period $32,021 $23,461
============ ==============
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities $8,671 $11,614
Payments in respect of restructuring activities 2,314 2,026
Proceeds from sale of property, plant and equipment 95 38
Purchase of property, plant and equipment (4,737) (9,333)
Other 19 (346)
------------ --------------
Free cash flow $6,362 $3,999
============ ==============
METTLER-TOLEDO INTERNATIONAL INC.
CREDIT AND OTHER OPERATING STATISTICS
(AMOUNTS IN THOUSANDS EXCEPT FINANCIAL RATIOS)
CREDIT STATISTICS LTM (a) LTM (a)
March 31, December 31,
2003 2002
Net debt / EBITDA (b)(c) 1.5 1.5
EBITDA / interest expense (c)(d) 11.7 11.5
<FN>
Notes:
(a) LTM represents last twelve months.
(b) Net debt represents gross debt less cash.
(c) EBITDA represents adjusted operating income of $162,980 (2002
$167,313) plus depreciation of $25,727 (2002 $23,178).
(d) Interest expense represents interest expense less amortization of
financing costs.
</FN>
LOCAL CURRENCY SALES GROWTH BY DESTINATION
3 months ended March 31, 2003
--------------------------------------------------------
Europe Americas Asia/RoW Total
Local currency sales growth -6% -2% 12% -2%
Local currency sales growth excluding European Retail 1% -2% 12% 1%