Mettler-Toledo International Inc. Provides Update on Fourth Quarter 2023 Financial Results

Rhea-AI Summary

Mettler-Toledo International Inc. (NYSE: MTD) announces that sales and Adjusted EPS for Q4 2023 will be below guidance due to shipping delays with a new logistics service provider in Europe. Preliminary data shows a 12% decline in reported sales and a 13% decline in local currency sales. The company will present at the J.P. Morgan Healthcare Conference and release Q4 2023 financial results on February 8th.

Positive

• None.

Negative

• Sales and Adjusted EPS for Q4 2023 will be below guidance due to shipping delays with a new logistics service provider in Europe.
• Reported sales declined approximately 12% and local currency sales declined approximately 13% for Q4 2023.

Insights

Market Research Analyst

The announcement by Mettler-Toledo International Inc. regarding its lower-than-expected sales and Adjusted EPS for Q4 2023 due to shipping delays represents a significant hiccup in operations, with an immediate effect on the company's financial performance. The reported 12% decline in sales and the 13% decline in local currency sales are substantial variances from the initial guidance of 7-8%. This discrepancy is likely to stir investor concern over the company's operational efficiency and its ability to manage external partnerships.

From a market perspective, the 1% currency benefit is a minor positive in the context of the larger sales decline. The logistics issue points to potential vulnerabilities in the supply chain that could be systemic or an isolated incident. Investors will be keen to understand the nature of these delays to gauge the likelihood of recurrence. The company's intent to recover the lost ground in Q1 2024 suggests confidence in resolving the issue swiftly, which could mitigate long-term concerns.

Moreover, the withdrawal of Adjusted EPS guidance indicates a significant level of uncertainty, which typically leads to volatility in the stock price. Stakeholders will be looking for transparency and a clear recovery plan during the upcoming earnings call and conference presentation.

Financial Analyst

For investors, the unexpected downward revision in sales and Adjusted EPS is a critical factor in reassessing the value of Mettler-Toledo's stock. The market reacts to such news with heightened sensitivity, especially when it concerns a company that holds global number-one market positions in several segments. The short-term implications include potential stock price decline and increased scrutiny by analysts and investors.

Long-term implications hinge on the company's ability to address the root causes of these shipping delays and to demonstrate that its growth strategies can withstand such setbacks. Given Mettler-Toledo's strong track record of financial performance, this incident will test investor confidence in the company's execution capabilities. The forthcoming financial results and earnings call will be pivotal in providing clarity and potentially restoring investor confidence.

It is also crucial to note that the logistics service provider is external, which could mean a reevaluation of third-party relationships or an internal overhaul to prevent future occurrences. The financial community will be interested in any strategic shifts that may be announced, as these could have long-term implications for operational costs and margins.

Supply Chain Analyst

The reliance on an external European logistics service provider that led to significant shipping delays is a red flag for supply chain robustness. For a company operating globally with a wide sales and service network, logistics are a cornerstone of successful operations. The impact of these delays is a reminder of the importance of having resilient supply chains, especially in industries where precision instruments and timely delivery are crucial.

While the company expects to recover the delays in Q1 2024, stakeholders will be interested in understanding the measures being taken to prevent future disruptions. This could involve diversifying logistics partners, increasing inventory levels, or enhancing predictive analytics to anticipate and mitigate risks. The incident may prompt a broader industry review of supply chain practices, especially for companies heavily dependent on external partners for logistics.

Given Mettler-Toledo's market leadership and innovation prowess, the company's response to this challenge will be closely watched. It could serve as a case study for supply chain crisis management and resilience building in a post-pandemic global business environment where supply chain disruptions have become increasingly common.

COLUMBUS, Ohio--(BUSINESS WIRE)-- Mettler-Toledo International Inc. (NYSE: MTD) today announced that sales and Adjusted EPS for the fourth quarter of 2023 will be below its previously-issued guidance due to unexpected shipping delays with a new external European logistics service provider, which the Company expects to largely recover in the first quarter of 2024.

For the fourth quarter ended December 31, 2023, the Company estimates, based upon preliminary information, that reported sales declined approximately 12% and local currency sales declined approximately 13% as currency increased sales growth by approximately 1%. This compares with previous fourth quarter local currency sales decline guidance of approximately 7% to 8%.

The Company is evaluating the impact of the shipping delays on its fourth quarter 2023 Adjusted EPS results, and therefore also withdrew its previously-issued Adjusted EPS guidance.

Mettler-Toledo will be presenting at the 42^nd Annual J.P. Morgan Healthcare Conference on Wednesday, January 10 at 11:15 a.m. Eastern Time and will provide additional information. A live webcast of the presentation will be available on the Company’s investor relations website at investor.mt.com. Additionally, the Company will release its fourth quarter 2023 financial results after the market close on February 8th, and will host a conference call at 8:30 a.m. Eastern Time on February 9^th. To listen to a live webcast or replay of the earnings call, please visit the investor relations page on the Company’s website at investor.mt.com.

METTLER TOLEDO (NYSE: MTD) is a leading global supplier of precision instruments and services. We have strong leadership positions in all of our businesses and believe we hold global number-one market positions in most of them. We are recognized as an innovation leader and our solutions are critical in key R&D, quality control, and manufacturing processes for customers in a wide range of industries including life sciences, food, and chemicals. Our sales and service network is one of the most extensive in the industry. Our products are sold in more than 140 countries and we have a direct presence in approximately 40 countries. With proven growth strategies and a focus on execution, we have achieved a long-term track record of strong financial performance. For more information, please visit www.mt.com.

Forward-Looking Statements and Preliminary Results Disclaimer

The Company does not plan to release preliminary financial information on an ongoing basis. The financial information presented above is preliminary, is based on information available to management as of the date of this press release, and is subject to further changes upon completion of the Company's standard quarter and year-end closing procedures. This update does not present all necessary information for an understanding of the Company's financial condition as of the date of this press release or its results of operations for the quarter and year ended December 31, 2023. As the Company completes its quarter-end and year-end financial close processes and finalizes its financial statements for the quarter and year ended December 31, 2023, it will be required to make significant judgments in a number of areas. The Company does not intend to update such financial information prior to release of its financial statement information for the quarter and year ended December 31, 2023.

You should not rely on forward-looking statements to predict our actual results. Our actual results or performance may be materially different than reflected in forward-looking statements because of various risks and uncertainties, including statements about expected revenue growth, inflation, and ongoing developments related to Ukraine. You can identify forward-looking statements by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue.”

We make forward-looking statements about future events or our future financial performance, including earnings and sales growth, earnings per share, strategic plans and contingency plans, growth opportunities or economic downturns, our ability to respond to changes in market conditions, planned research and development efforts and product introductions, adequacy of facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, customer demand, our competitive position, pricing, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions, and the impact of inflation and ongoing developments related to Ukraine on our business.

Our forward-looking statements may not be accurate or complete, and we do not intend to update or revise them in light of actual results. New risks also periodically arise. Please consider the risks and factors that could cause our results to differ materially from what is described in our forward-looking statements, including inflation and the ongoing developments related to Ukraine. See in particular “Factors Affecting Our Future Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2022 and other reports filed with the SEC from time to time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240104850104/en/

Adam Uhlman

Head of Investor Relations

METTLER TOLEDO

Direct: 614-438-4794

adam.uhlman@mt.com

Source: Mettler-Toledo International Inc.

FAQ

What is the reason for Mettler-Toledo International Inc.'s (NYSE: MTD) below-guidance sales and Adjusted EPS for Q4 2023?

The company experienced unexpected shipping delays with a new external European logistics service provider.

When will Mettler-Toledo International Inc. present at the J.P. Morgan Healthcare Conference?

The company will present at the 42nd Annual J.P. Morgan Healthcare Conference on Wednesday, January 10 at 11:15 a.m. Eastern Time.

When will Mettler-Toledo International Inc. release its Q4 2023 financial results?

The company will release its fourth quarter 2023 financial results after the market close on February 8th.

Where can I listen to a live webcast or replay of Mettler-Toledo International Inc.'s earnings call?

To listen to a live webcast or replay of the earnings call, please visit the investor relations page on the Company’s website at investor.mt.com.

What industries does Mettler-Toledo International Inc. (NYSE: MTD) serve?

Mettler-Toledo International Inc. serves a wide range of industries including life sciences, food, and chemicals.

How many countries does Mettler-Toledo International Inc. (NYSE: MTD) have a direct presence in?

The company has a direct presence in approximately 40 countries.

Where can I find more information about Mettler-Toledo International Inc. (NYSE: MTD)?

For more information, please visit www.mt.com.