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Sep 30, 2023

Mettler-Toledo Q3 2023 Earnings Report

Mettler-Toledo's Q3 2023 earnings reflected a sales decline and mixed regional performance amid challenging market conditions.

Key Takeaways

Mettler-Toledo International Inc. reported a 4% decline in sales compared to the prior year, with local currency sales decreasing by 5%. EPS was $9.21, while adjusted EPS decreased by 4% to $9.80. The company noted good earnings and cash flow performance despite challenging market conditions in China and foreign currency headwinds.

Reported sales decreased by 4% compared to the prior year, with local currency sales down by 5%.

EPS was reported at $9.21, compared to $9.76 in the prior-year period.

Adjusted EPS was $9.80, a 4% decrease from the prior-year amount of $10.18.

Local currency sales increased 4% in Europe, declined 3% in the Americas, and declined 14% in Asia/Rest of World.

Total Revenue
$942M
Previous year: $986M
-4.4%
EPS
$9.8
Previous year: $10.2
-3.7%
Adjusted Operating Profit
$296M
Previous year: $307M
-3.6%
Gross Profit
$560M
Previous year: $585M
-4.3%
Cash and Equivalents
$69.7M
Previous year: $122M
-43.0%
Free Cash Flow
$243M
Previous year: $219M
+11.3%
Total Assets
$3.29B
Previous year: $3.29B
-0.2%

Mettler-Toledo

Mettler-Toledo

Forward Guidance

Mettler-Toledo anticipates a decline in local currency sales for Q4 2023 by approximately 7% to 8%, with Adjusted EPS expected to be $10.50 to $10.70, a decline of 12% to 13%. For the full year 2023, local currency sales are expected to decline approximately 1%, and Adjusted EPS is forecast to be in the range of $39.10 to $39.30, representing a decline of approximately 1%. The company anticipates local currency sales in 2024 will be approximately flat, resulting in Adjusted EPS in the range of $39.10 to $39.80, representing growth of approximately 0% to 2%.

Positive Outlook

  • Focus on strong execution of corporate programs like Spinnaker to drive growth and capture market share.
  • Continued focus on SternDrive to manage costs effectively.
  • Remarkable resilience and agility in adjusting to changing market conditions.
  • Ongoing investment in long-term strategic priorities like innovation.

Challenges Ahead

  • Market conditions are expected to remain challenging in the near-term, especially in China.
  • Difficult sales growth comparisons.
  • Local currency sales for the fourth quarter of 2023 will decline approximately 7% to 8%.
  • Adjusted EPS is forecast to be $10.50 to $10.70, a decline of 12% to 13%.
  • Local currency sales in 2023 will decline approximately 1%.