Debt reduced by $34 million
William P. Donnelly, Chief Financial Officer
Phone: ++41 1 944 2262
Fax: ++41 1 944 2470
Greifensee, Switzerland, May 16, 1997
Mettler-Toledo Holding Inc. announced its first quarter results for the period ended
March 31, 1997.
The Company reported sales of $197.4 million as compared to $201.4 million in the first
quarter of 1996. The 1997 amount represented a 4% growth in local currency sales offset
by the effects of a stronger United States dollar. The Company's gross profit percentage
increased from 39.9% to 42.2% and its operating margin improved from $6.5 million, or
3.2% of sales, to $12.3 million, or 6.2% of sales, an increase of nearly 90%. Similarly,
EBITDA of $18.2 million, or 9.2% of sales, represented a 39% improvement over the 1996
period. The Company reported debt of $420.1 million at March 31, 1997, a reduction of
$34.1 million from the year end 1996 amount.
In commenting on first quarter results, Robert Spoerry, Chief Executive Officer of the
Company stated; "We are pleased with the solid results for the quarter. The investments
we have made in product development continue to deliver excellent returns through
increased market share and improved operating margins. Our financial performance is
especially satisfying because it comes so soon after our establishment as an independent
company. We believe our customers and employees will benefit from this new status and
the focus it implies."
Mr. Spoerry continued; "We were proud to announce this quarter the completion of the
mid-range offering for our retail scale systems. We believe this system is the most
technologically advanced network solution for perishable goods management on the market
today. Its introduction has been well received by our customers and we believe it should
allow us to continue our penetration of this growing market."
"Finally, I want to compliment our Spartanburg, South Carolina unit for its recent
award of an exclusive contract to supply Pitney Bowes with mail scales. Pitney Bowes
selected Mettler-Toledo as its partner after evaluation against all major competitors.
I applaud our employees for their hard work and thank Pitney Bowes for their faith in
our products and our people" said Mr. Spoerry in closing.
METTLER TOLEDO is the world's largest manufacturer and marketer of weighing instruments
for use in laboratory, industrial and food retailing applications and a leading provider
of related laboratory analytical instruments. The company focuses on the high value-added
segments of the weighing instruments market by providing solutions for specific
applications. METTLER TOLEDO, which became an independent company through an employee
buy-out sponsored by AEA Investors Inc., New York (NY) in October 1996, services a
worldwide customer base in over one hundred countries primarily through wholly-owned
subsidiaries, and includes manufacturing sites in the United States, Asia and Europe.
The Company has revenues approaching $900 million and more than 6'000 employees
worldwide. Its Senior Subordinated Notes are traded "over the counter" in the United
The accompanying financial information should be read in conjunction with the Company's
recently filed form 10-Q for the quarter ended March 31, 1997. Statements in this
discussion which are not historical facts may be considered forward looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
The words "believe," "expect", "anticipate" and similar expressions identify forward
looking statements. Any forward looking statements involve risks and uncertainties that
could cause actual events or results to differ, perhaps materially, from the events or
results described in the forward looking statements. Readers are cautioned not to place
undue reliance on these forward looking statements, which speak only as of their dates.
The Company undertakes no obligation to publicly update or revise any forward looking
statements, whether as a result of new information, future events or otherwise. Risks
associated with the Company's forward looking statements include, but are not limited
to, risks associated with the Company's international operations, such as currency
fluctuations, the risk of new and different legal and regulatory requirements,
governmental approvals, tariffs and trade barriers; risks associated with competition
and technological innovation by competitors; general economic conditions and conditions
in industries that use the Company's products, especially the pharmaceutical and
chemical industries, and risks associated with the Company's growth strategy, including
investments in emerging markets. For a more detailed discussion of these factors, see
the Mettler-Toledo Holding Inc. annual report on Form 10-K for the year ended December
METTLER-TOLEDO HOLDING INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended March 31, 1997 and 1996
March 31, 1997 March 31, 1996
Net sales $197,402 $201,373
Cost of sales 114,120 120,979
Gross profit 83,282 80,394
% 42.2% 39.9%
Research and development 10,832 12,452
Selling, general and administrative 60,193 61,479
Operating margin 12,257 6,463
% 6.2% 3.2%
Amortization 1,157 671
Other charges, net 11 -
Interest expense 9,446 4,537
Financial expense (income), net 3,743 (396)
Earnings (loss) before taxes and
minority interest (2,100) 1,651
Provision for taxes (1,087) 648
Minority interest 109 74
Net earnings (loss) $(1,122) $929
EBITDA $18,167 $13,023
% 9.2% 6.5%
NOTE: EBITDA and margin percentages are before non-recurring
costs associated with the Company's acquisition and related
restructuring, EBITDA is also calculated before financial income
and minority equity.