EXHIBIT 99.1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2005 RESULTS
-- SOLID LOCAL CURRENCY SALES GROWTH AND STRONG GROSS MARGIN EXPANSION --
- - 15% INCREASE IN EPS - -
GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - May 3, 2005 -
Mettler-Toledo International Inc. (NYSE: MTD) today announced net earnings
of $20.8 million, or $0.47 per share on a diluted basis, for the quarter
ended March 31, 2005. This compares with net earnings per share of $0.41
for the first quarter of 2004.
Sales for the quarter were $337.2 million, compared with $318.7 million in
the prior year. This represents a 6% increase in reported sales, consisting
of a 3% increase in local currency sales and a 3% increase due to currency.
Adjusted operating income amounted to $35.7 million, compared with $32.8
million last year. Operating cash flow in the quarter was $6.7 million
compared with $29.4 million last year.
Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated,
"The first quarter was a solid start to the year. Local currency sales
growth was in line with our expectations and was driven by better than
expected performance in the Americas. In Asia / Rest of World, sales growth
was less than the previous year but consistent with our projections. In
Europe, economic conditions are challenging and sales were down slightly
from last year and below our expectations. We are happy to report another
quarter of strong increase in gross margins over the prior year. This led
to a solid improvement in earnings for the quarter."
Spoerry concluded, "We remain cautiously optimistic for the remainder of
the year. We anticipate sales growth in Asia / Rest of World and Europe to
improve as the year progresses. Our strategic initiatives remain well on
track including many new product launches in the upcoming months. We are
introducing a new line of high-end analytical balances targeted for
applications in regulated areas and a number of exciting new solutions in
our product inspection business."
For the quarter ended March 31, 2005, the Company reported local currency
sales growth of 7% in the Americas and 4% in Asia / Rest of World and a 1%
decline in local currency sales in Europe.
During the first quarter the Company repurchased 528,000 shares of its
common stock.
The Company has reconciled adjusted operating income to the most comparable
U.S. GAAP measure in the attached schedules.
The Company will host a conference call to discuss its first quarter
results today (Tuesday, May 3) 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 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 manufacturer
and marketer 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 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 "Factors affecting our future operating
results" in Part I, Item 1, of the Company's Annual Report on Form 10-K for
the fiscal year December 31, 2004. The Company assumes no obligation to
update this press release.
METTLER-TOLEDO INTERNATIONAL INC.
COMPARATIVE FINANCIAL INFORMATION
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
THREE months ended THREE months ended
March 31, 2005 March 31, 2004
(unaudited) % (unaudited) %
Net sales $ 337,160 100.0 (a) $ 318,709 100.0
Cost of sales 174,365 51.7 168,433 52.8
--------- ----- --------- -----
Gross profit 162,795 48.3 150,276 47.2
Research and development 20,802 6.2 20,655 6.5
Selling, general and administrative 106,317 31.5 96,809 30.4
--------- ----- --------- -----
Adjusted operating income 35,676 10.6 32,812 10.3
Amortization 2,808 0.9 2,808 0.9
Interest expense 3,516 1.0 3,466 1.1
Other charges (income), net (336) (0.1) (64) (0.0)
--------- ----- --------- -----
Earnings before taxes 29,688 8.8 26,602 8.3
Provision for taxes 8,907 2.6 7,980 2.5
--------- ----- --------- -----
Net earnings $ 20,781 6.2 $ 18,622 5.8
========= ===== ========= =====
Diluted per share amounts:
Net earnings $ 0.47 $ 0.41
Weighted average number of common shares 44,388,971 45,836,934
Notes:
(a) Local currency sales increased 3% as compared to the same period in 2004.
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
AS REPORTED AS REPORTED
----------- -----------
THREE months ended THREE months ended
March 31, 2005 March 31, 2004
(unaudited) (unaudited)
Net sales $ 337,160 $ 318,709
Cost of sales 174,365 168,433
----------- -----------
Gross profit 162,795 150,276
Research and development 20,802 20,655
Selling, general and administrative 106,317 96,809
Amortization 2,808 2,808
Interest expense 3,516 3,466
Other charges (income), net (336) (64)
----------- -----------
Earnings before taxes 29,688 26,602
Provision for taxes 8,907 7,980
----------- -----------
Net earnings $ 20,781 $ 18,622
=========== ===========
Basic earnings per common share:
Net earnings $ 0.48 $ 0.42
Weighted average number of common shares 43,139,233 44,557,443
Diluted earnings per common share:
Net earnings $ 0.47 $ 0.41
Weighted average number of common shares 44,388,971 45,836,934
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
March 31, December 31,
2005 2004
(unaudited)
Cash and cash equivalents $ 67,780 $ 67,176
Accounts receivable, net 259,512 271,097
Inventories, net 156,424 156,539
Other current assets and prepaid expenses 62,028 57,545
------------- -------------
Total current assets 545,744 552,357
Property, plant and equipment, net 229,402 242,709
Goodwill and other intangibles 556,119 560,181
Other non-current assets 119,934 124,825
------------- -------------
Total assets $ 1,451,199 $ 1,480,072
============= =============
Short-term debt $ 10,351 $ 6,913
Accounts payable 66,157 85,129
Accrued and other current liabilities 255,022 256,204
------------- -------------
Total current liabilities 331,530 348,246
Long-term debt 217,421 196,290
Other non-current liabilities 202,575 214,650
------------- -------------
Total liabilities 751,526 759,186
Shareholders' equity 699,673 720,886
------------- -------------
Total liabilities and shareholders' equity $ 1,451,199 $ 1,480,072
============= =============
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(AMOUNTS IN THOUSANDS)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE months ended THREE months ended
March 31, 2005 March 31, 2004
(unaudited) (unaudited)
Cash flow from operating activities:
Net earnings $ 20,781 $ 18,622
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 6,653 6,473
Amortization 2,808 2,808
Deferred taxation (2,606) 366
Other 1 (33)
Increase (decrease) in cash resulting from changes in
operating assets and liabilities (a) (20,949) 1,187
----------- -----------
Net cash provided by operating activities (a) 6,688 29,423
----------- -----------
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment 418 363
Purchase of property, plant and equipment (5,345) (5,869)
Acquisitions (213) -
----------- -----------
Net cash used in investing activities (5,140) (5,506)
----------- -----------
Cash flows from financing activities:
Proceeds from borrowings 34,255 31,980
Repayments of borrowings (8,431) (41,494)
Proceeds from options exercised 1,974 1,758
Repurchases of common stock (28,353) (16,591)
----------- -----------
Net cash used in financing activities (555) (24,347)
----------- -----------
Effect of exchange rate changes on cash and cash equivalents (389) 82
----------- -----------
Net increase (decrease) in cash and cash equivalents 604 (348)
Cash and cash equivalents:
Beginning of period 67,176 45,116
----------- -----------
End of period $ 67,780 $ 44,768
=========== ===========
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities (a) $ 6,688 $ 29,423
Payments in respect of restructuring activities 425 2,036
Proceeds from sale of property, plant and equipment 418 363
Purchase of property, plant and equipment (5,345) (5,869)
----------- -----------
Free cash flow $ 2,186 $ 25,953
=========== ===========
Notes:
(a) The decrease in 2005 resulted principally from approximately $15.0
million of higher payments relating to 2004 performance-related
compensation incentives (bonus payments) and the timing of our
accounts payables disbursements which increased $12.3 million in the
three months ended March 31, 2005 compared to the corresponding period
in 2004.
METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
LOCAL CURRENCY SALES GROWTH BY DESTINATION
3 months ended March 31, 2005
-------------------------------------------------------------------------
Europe Americas Asia/RoW Total
Local currency sales growth -1% 7% 4% 3%