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MettlerToledo International Inc. Reports Operating Results (10-Q)

November 02, 2012 | About:
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10qk

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MettlerToledo International Inc. (MTD) filed Quarterly Report for the period ended 2012-09-30.

Mettler-toledo International, Inc. has a market cap of $5.18 billion; its shares were traded at around $174.09 with a P/E ratio of 19.2 and P/S ratio of 2.2. Mettler-toledo International, Inc. had an annual average earning growth of 14% over the past 10 years. GuruFocus rated Mettler-toledo International, Inc. the business predictability rank of 4.5-star.
This is the annual revenues and earnings per share of MTD over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of MTD.


Highlight of Business Operations:

The Company has an interest rate swap agreement, designated as a cash flow hedge. The agreement is a forward-starting swap which changed the floating rate LIBOR-based interest payments associated with $100 million in forecasted borrowings under the Company s credit facility to a fixed obligation of 3.24% beginning in October 2010. The swap is recorded in other non-current liabilities in the consolidated balance sheet at its fair value at September 30, 2012 and December 31, 2011 of $9.0 million and $9.2 million, respectively. The effective portion of the loss reclassified from accumulated other comprehensive income (loss) to interest expense was $0.8 million for both the three month periods ended September 30, 2012 and 2011, respectively, and $2.3 million for both the nine month periods ended September 30, 2012 and 2011, respectively. The amount recognized in other comprehensive income (loss) during the three month periods ended September 30, 2012 and 2011 was a gain of $0.2 million and a loss of $2.7 million, respectively, and during the nine month periods ended September 30, 2012 and 2011 was a gain of $0.2 million and loss of $3.6 million, respectively. A derivative loss of $3.1 million ($1.9 million after tax) based upon interest rates at September 30, 2012, is expected to be reclassified from other comprehensive income (loss) to earnings in the next twelve months. Through September 30, 2012 no hedge ineffectiveness has occurred in relation to this hedge.

Net sales by geographic destination for the three and nine months ended September 30, 2012, in U.S. dollars were flat and increased 4% in the Americas, increased 5% and 12% in Asia/Rest of World and decreased 15% and 9% in Europe. In local currencies, our net sales by geographic destination for the three and nine months ended September 30, 2012, increased 1% and 4% in the Americas and 7% and 12% in Asia/Rest of World and decreased 5% and 2% in Europe. Acquisitions contributed approximately 1% to net sales growth in Europe for the nine months ended September 30, 2012. Net sales in local currencies during the previous three and nine months ended September 30, 2011, increased 10% in both periods in the Americas, 16% and 14% in Europe and 21% in both periods in Asia/Rest of World. A discussion of sales by operating segment is included below.

Total net sales decreased 14% and 6% in U.S. dollars for the three and nine months ended September 30, 2012, respectively. Total net sales in local currency increased 1% for the three month period ended September 30, 2012 and were flat for the nine month period ended September 30, 2012, compared to the corresponding periods in 2011. Net sales to external customers decreased 28% and 14% in U.S. dollars and 15% and 8% in local currency during the three and nine months ended September 30, 2012, respectively, compared to the corresponding periods in 2011. Local currency growth during the prior year comparable periods in net sales was 5% and 6%, and for net sales to external customers was 14% and 10%, for the three and nine month periods ended September 30, 2011. The decrease in local currency net sales to external customers for the three and nine month periods ended September 30, 2012 primarily related to volume decreases across most product categories, especially food retailing, and third-party export business. Our Swiss Operations continue to face unfavorable economic conditions and we expect our local currency sales to external customers will be adversely impacted for the remainder of 2012.

Total net sales decreased 13% and 7% in U.S. dollars and in local currency decreased 3% and increased 1% for the three and nine month periods ended September 30, 2012, respectively, compared to the corresponding periods in 2011. Net sales to external customers decreased 14% and 7% in U.S. dollars and in local currency decreased 4% and increased 1% for the same periods versus the prior year comparable periods. Acquisitions contributed approximately 1% and 2% to our net sales growth for the three and nine months ended September 30, 2012. Local currency growth in total net sales and net sales to external customers was strong during the prior year comparable periods, representing 13% and 11% growth in total net sales and 14% and 10% growth in net sales to external customers during the three and nine month periods ended September 30, 2011, respectively. Total net sales and net sales to external customers for the three and nine months ended September 30, 2012 includes sales volume declines in food retailing and core-industrial products. Total net sales and net sales to external customers also include a volume decline in laboratory balances for the three months ended September 30, 2012. Our Western European

Total net sales increased 13% and 10% in U.S. dollars and increased 11% and 7% in local currency during the three and nine months ended September 30, 2012, respectively, compared to the corresponding periods in 2011. Net sales to external customers increased 8% and 14% in U.S. dollars and increased 6% and 11% in local currency during the three and nine months ended September 30, 2012, respectively, as compared to the corresponding periods in 2011. Local currency growth in net sales to external customers was strong during the prior year comparable periods, representing 23% and 26% growth during the three and nine month periods ended September 30, 2011, respectively. The local currency increase in total net sales and net sales to external customers for the three and nine month periods ended September 30, 2012 include particularly strong growth in laboratory-related products, modest growth in industrial-related products and a decline in food retailing.

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