Mettler-Toledo(US:MTD)2020-05-08 13:07Financial Performance - Total revenue for the three months ended March 31, 2020, was $649.2 million, a decrease of 4.4% compared to $679.5 million for the same period in 2019[49]. - Product revenue for the three months ended March 31, 2020, was $489.3 million, while service revenue was $159.9 million, representing a decline of 6.1% and an increase of 0.5% respectively compared to the prior year[49]. - Total net sales for the three months ended March 31, 2020, were $649.162 million, a decrease from $679.452 million in the same period of 2019, representing a decline of approximately 4.4%[90]. - Net sales for the three months ended March 31, 2020, were $649.2 million, a decrease of 4% compared to $679.5 million in the same period of 2019[108]. - Comprehensive income for the three months ended March 31, 2020, was $74.087 million, down from $124.465 million in 2019, indicating a decline of about 40%[77]. - The Company recorded net earnings of $98.115 million for the three months ended March 31, 2020, compared to $111.805 million for the same period in 2019, reflecting a decrease of approximately 12%[77]. Expenses and Costs - The company recognized amortization expense for intangible assets of $3.9 million for the three months ended March 31, 2020, compared to $3.7 million for the same period in 2019, indicating a year-over-year increase of about 5.4%[25]. - The Company recorded share-based compensation expense of $4.4 million for the three months ended March 31, 2020, slightly down from $4.5 million in the same period of 2019[38]. - Selling, general and administrative expenses were 30.6% of net sales for the three months ended March 31, 2020, up from 30.1% in the same period of 2019, despite a 3% decrease in expenses[119]. - Research and development costs are expensed as incurred, reflecting the company's commitment to innovation and product development[39]. - Research and development expenses decreased by 5% in both U.S. dollars and local currencies, remaining at 5.3% of net sales for the three months ended March 31, 2020[118]. - The Company incurred net periodic pension cost of $1.856 million for the three months ended March 31, 2020, compared to $2.788 million in the same period of 2019, reflecting a decrease of approximately 33.4%[85]. Assets and Liabilities - As of March 31, 2020, total inventories amounted to $292.1 million, an increase from $274.3 million as of December 31, 2019, reflecting a growth of approximately 6.3%[23]. - The company’s goodwill and other intangible assets totaled $205.7 million as of March 31, 2020, compared to $206.2 million as of December 31, 2019, showing a slight decrease[24]. - Trade accounts receivable are recorded at the invoiced amount, with an allowance for expected credit losses based on historical and current information[21]. - The company’s operating lease right-of-use assets and lease liabilities are recognized at the commencement of the lease based on the present value of lease payments[34]. - The Company had derivative assets totaling $2.7 million and derivative liabilities totaling $14.6 million as of March 31, 2020[64]. - The fair value of the Company's debt exceeded the carrying value by approximately $21.0 million as of March 31, 2020[68]. - As of March 31, 2020, the Company had total debt of $1.569 billion, with long-term debt amounting to $1.513 billion[71]. Cash Flow and Liquidity - Cash provided by operating activities totaled $65.5 million during the three months ended March 31, 2020, down from $98.8 million in the same period in 2019, with higher tax payments contributing to the decrease[138]. - The Company maintained liquidity with approximately $342.9 million of additional borrowings available and $323.6 million in cash and cash equivalents as of March 31, 2020[103]. - Cash equivalents were $10.9 million as of March 31, 2020, up from $8.2 million as of December 31, 2019[67]. - The Company has $1.1 billion remaining in its share repurchase program, with $200 million spent on repurchases during the three months ended March 31, 2020[75]. Market and Economic Conditions - The COVID-19 pandemic negatively impacted the Company's business, particularly in China, leading to reduced customer demand and anticipated lower global sales volume in future quarters[105]. - The company expects net sales in local currencies to be adversely affected by COVID-19 related unfavorable economic conditions and reduced customer demand in future quarters[108]. - Total net sales in Chinese Operations decreased by 16% to $149.3 million, with segment profit declining 23% to $45.6 million due to reduced customer demand related to COVID-19[132][134]. Taxation - The reported tax rate for the three months ended March 31, 2020, was 17%, compared to 11% for the same period in 2019[69]. - The reported tax rate increased to 17% for the three months ended March 31, 2020, compared to 11% in the same period of 2019[122]. Restructuring and Charges - The Company recognized restructuring charges of $1.9 million for the three months ended March 31, 2020, with a balance of $6.969 million in accrued liabilities as of that date[86]. - Restructuring charges for the three months ended March 31, 2020, included $0.3 million related to U.S. operations, $0.7 million to Swiss operations, and $0.8 million to Western European operations[93].