In This Article:
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Sales: $884 million, a 3% decrease in local currency; 5% decline on a US dollar reported basis.
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Gross Margin: 59.5%, an increase of 30 basis points; expanded 90 basis points excluding shipping delays.
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Adjusted Operating Profit: $237 million, down 11% from the prior year.
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Adjusted Operating Margin: 26.8%, a decrease of 210 basis points; expanded 50 basis points excluding shipping delays.
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Adjusted EPS: $8.19, an 8% decrease over the prior year; 11% growth excluding shipping delay recovery and foreign exchange headwinds.
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Free Cash Flow: $180 million, a 1% increase on a per share basis.
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R&D Expenses: $46 million, a 2% increase in local currency.
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SG&A Expenses: $243 million, a 5% increase in local currency.
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Effective Tax Rate: 19% for the quarter.
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Fully Diluted Shares: 20.9 million, approximately a 3% decline from the prior year.
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Local Currency Sales Growth by Region: Declined 1% in the Americas, 7% in Europe, 2% in Asia, Rest of the World; flat in China.
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Local Currency Sales Growth by Product Area: Laboratory sales decreased 3%, industrial declined 1%, product inspection up 8%, food retail declined 12%.
Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mettler-Toledo International Inc (NYSE:MTD) reported solid growth in its laboratory business, driven by recent innovations and strategic market penetration.
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The company achieved better-than-expected earnings for the quarter due to strong execution of margin expansion strategies.
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Service sales increased by 6% in local currency, indicating a robust demand for MTD's service offerings.
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The process analytics business experienced strong growth, benefiting from favorable biopharma market trends and recent innovations.
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MTD's product inspection business showed resilience, with growth initiatives and a new portfolio offsetting challenging market conditions in the food manufacturing industry.
Negative Points
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Global trade disputes and tariffs have increased uncertainty in customer demand, with estimated incremental global tariff costs of approximately $115 million annually.
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Sales in the quarter decreased by 3% in local currency, with a 5% decline on a US dollar reported basis.
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Local currency sales declined in key regions: 1% in the Americas, 7% in Europe, and 2% in Asia, Rest of the World.
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Adjusted operating profit decreased by 11% from the prior year, with an adjusted operating margin decrease of 210 basis points.
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The company faces a headwind in gross margin due to higher tariff costs, with a net headwind to EPS growth of approximately 3% for the second quarter.