Columbus / OH. (mti) Mettler-Toledo International Inc. announced first quarter results for 2023. Highlights:
- Reported sales increased 3 percent compared with the prior year. In local currency, sales increased 7 percent in the quarter as currency reduced sales growth by 4 percent.
- Net earnings per diluted share as reported (EPS) were USD 8.47, compared with USD 7.55 in the prior-year period. Adjusted EPS was USD 8.69, up 10 percent over the prior-year amount of USD 7.87.
First Quarter Results
Patrick Kaltenbach, President and Chief Executive Officer, stated, «We had a very good start to the year with our first quarter results and benefited from broad-based growth across geographic regions and product categories, including very strong momentum in our service business. We were also pleased with our strong execution on margin initiatives and cost control, which resulted in solid growth in Adjusted EPS despite a very significant currency headwind.»
GAAP Results: EPS in the quarter was USD 8.47, compared with the prior-year amount of USD 7.55. Compared with the prior year, total reported sales increased 3 percent to USD 929 million. By region, reported sales increased 5 percent in the Americas and 2 percent in both Europe and Asia/Rest of World. Earnings before taxes amounted to USD 226.6 million, compared with USD 213.0 million in the prior year.
Non-GAAP Results: Adjusted EPS was USD 8.69, an increase of 10 percent over the prior-year amount of USD 7.87. Compared with the prior year, total sales in local currency increased 7 percent as currency reduced sales growth by 4 percent. By region, local currency sales increased 6 percent in both the Americas and Europe and 10 percent in Asia/Rest of World. Adjusted Operating Profit amounted to USD 266.5 million, a 10 percent increase from the prior-year amount of USD 241.2 million. Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.
The Company stated that forecasting remains challenging. Management cautions that market conditions are dynamic and changes to the business environment can occur quickly. There is uncertainty in the economic environment today, including the risk of recession in many countries, and management acknowledges that market conditions are subject to change.
Based on today’s assessment of market conditions, management anticipates local currency sales growth for the second quarter of 2023 will be approximately 3 percent, and Adjusted EPS is forecast to be USD 9.90 to USD 10.00, a growth rate of 5 percent to 7 percent. Included in the second quarter guidance is an estimated 4 percent headwind to Adjusted EPS growth due to adverse currency.
For the full year, management anticipates local currency sales growth in 2023 will be approximately 5 percent, and Adjusted EPS is forecast to be in the range of USD 43.65 to USD 43.95, representing growth of approximately 10 percent to 11 percent. This compares with previous local currency sales growth guidance of approximately 5 percent and Adjusted EPS guidance of USD 43.55 to USD 43.95. Included in the 2023 guidance is an estimated 2 percent headwind to Adjusted EPS growth due to adverse currency.
While the Company has provided an outlook for local currency sales growth and Adjusted EPS, it has not provided an outlook for reported sales growth or EPS as it would require an estimate of currency exchange fluctuations and non-recurring items, which are not yet known.
Kaltenbach concluded, «There is uncertainty in the global economy and our end markets, but we remain focused on the factors we can control, namely capitalizing on our Spinnaker sales and marketing programs and executing on our productivity and margin expansion initiatives. Investment in our broad product portfolio will extend our technology leadership and deliver innovative solutions for customers that increase productivity, enhance compliance, and improve quality. We believe our unique growth strategies, tremendous diversity, and culture of operational excellence and agility position us very well to gain market share and deliver solid financial results in 2023.»