• Revenue: $954.5 million, a 1% increase in local currency and US dollars.

• Gross Margin: 60%, an increase of 60 basis points.

• Adjusted Operating Profit: $296.6 million, unchanged from the prior year.

• Adjusted Operating Margin: 31.1%, a decrease of 30 basis points from the prior year.

• Adjusted EPS: $10.21, a 4% increase over the prior year.

• Reported EPS: $9.96, compared to $9.21 in the prior year.

• R&D Expenses: $47.1 million, a 1% increase in local currency.

• SG&A Expenses: $228.8 million, a 5% increase in local currency.

• Free Cash Flow: $671 million for the first nine months, a 7% increase per share from the prior year.

• Effective Tax Rate: 19% for the quarter.

• Laboratory Sales Growth: 5% increase in the quarter.

• Industrial Sales: Flat, with core Industrial down 1% and product inspection up 1%.

• Food Retail Sales Decline: 20% in the quarter.

• Service Sales Growth: 9% in the third quarter.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mettler-Toledo International Inc (NYSE:MTD) reported strong growth in its Laboratory business, with a 5% increase in sales for the quarter.

• The company experienced particularly strong growth in its Service segment, which grew 9% in the third quarter.

• Mettler-Toledo International Inc (NYSE:MTD) introduced new innovations, including a stain-free automated cell counter and a new microplate reader, enhancing its product portfolio.

• The company is leveraging its Spinnaker sales and marketing program to identify and capture growth opportunities, aiming to gain market share.

• Mettler-Toledo International Inc (NYSE:MTD) reported a 7% increase in adjusted free cash flow for the first nine months, driven by favorable working capital.

Negative Points

• Market conditions remain challenging, particularly in China, where economic growth is weak and excess capacity exists in certain industries.

• The Industrial segment sales were flat, with core Industrial sales declining by 1%, reflecting sluggish market conditions.

• Food Retail sales declined 20% in the quarter, attributed to significant project activity in the prior year.

• The company's operating margin decreased by 30 basis points over the prior year, despite efforts to expand margins.

• Mettler-Toledo International Inc (NYSE:MTD) faces headwinds from shipping delays, which are expected to impact sales growth in 2025 by 1.5%.

Q & A Highlights

Q: What are the growth expectations for Mettler-Toledo's different segments in fiscal 2025, particularly for Labs and Services? A: Patrick Kaltenbach, CEO, stated that Services are expected to continue growing above the company average, in the mid- to high single digits. Shawn Vadala, CFO, detailed that the Lab business is expected to grow low to mid-single digits on a reported basis and mid to high single digits excluding shipping delays. Core Industrial and Product Inspection are estimated to grow low single digits, and Food Retail is expected to be flat or up low single digits adjusted for shipping delays.