Mettler-Toledo International Inc. reports Q3 2009 results

Third Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, “As we continued to face challenging market conditions and comparisons with very favorable results last year, our local currency sales declined as expected. However, gross margin increased strongly due to favorable mix as well as our initiatives in pricing and procurement. I am also very pleased with the benefit we are seeing from our cost reduction program. Finally, we again had excellent cash flow generation in the quarter.”

EPS was USD 1.21, compared with the prior-year amount of USD 1.52. Adjusted EPS was USD 1.36, compared with the prior-year amount of USD 1.44.

Sales were USD 435.7 million, compared with USD 509.1 million in the prior year, reflecting a 12 percent decline in local currency sales. Reported sales declined by 14 percent, which included a 2 percent negative currency impact. By region, local currency sales decreased 16 percent in Europe, 12 percent in the Americas and 6 percent in Asia / Rest of World. Adjusted operating income amounted to USD 73.2 million, a 4 percent decrease from the prior-year amount of USD 76.5 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 USD 79.6 million, compared with USD 76.6 million in 2008.

Nine-Month Results

EPS was USD 3.02, compared with the prior-year amount of USD 3.96. Adjusted EPS was USD 3.48, compared with the prior-year amount of USD 3.85.

Sales were USD 1.217 billion, compared with USD 1.464 billion in 2008, reflecting a 12 percent decline in local currency sales. Reported sales declined by 17 percent due to a negative 5 percent currency impact. By region, local currency sales decreased 15 percent in Europe, 13 percent in the Americas and 4 percent in Asia / Rest of World. Adjusted operating income amounted to USD 187.2 million, an 11 percent decrease from the prior-year amount of USD 210.0 million.

Cash flow from operations was USD 188.5 million, compared with USD 160.6 million in 2008.

Cost Reduction Program

Earlier in the year, the Company announced a Cost Reduction Program aimed at reducing costs by approximately USD 100 million annually. The Program, which is substantially completed, consisted primarily of work force reductions and other cost efficiency measures. The Company reported that the Program will meet its target. Total restructuring charges associated with the Program are expected to be USD 40 million, of which USD 34.8 million has been incurred to date.

Fourth Quarter Outlook

The Company stated that forecasting continues to be difficult given the ongoing uncertainty in the global economy. For the fourth quarter 2009, management expects a local currency sales decline in the range of -6 percent to -7 percent and Adjusted EPS in the range of USD 1.90 to USD 2.00. For the full-year 2009, this results in a local currency sales decline of approximately -10 percent and Adjusted EPS in the range of USD 5.39 to USD 5.50. This compares with previous full-year Adjusted EPS guidance of USD 4.92 to USD 5.42.

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. EPS guidance would require an estimate of non-recurring items for 2009, which are not yet known.