Mettler-Toledo(US:MTD)2021-05-07 15:20Financial Performance - Net sales for the three months ended March 31, 2021, were $804.4 million, a 24% increase from $649.2 million in the same period of 2020 [98]. - In local currencies, net sales increased 18% for the three months ended March 31, 2021, driven by strong customer demand across most businesses and regions [98]. - Total net sales increased by 25% in U.S. dollars and 15% in local currencies for the three months ended March 31, 2021 compared to the same period in 2020 [120]. - Net sales of laboratory products and services, which represented approximately 55% of total net sales, increased 25% in U.S. dollars [102]. - Net sales of industrial products and services, representing approximately 39% of total net sales, increased 23% in U.S. dollars [104]. - In China, total net sales reached $225.2 million, a 51% increase in U.S. dollars compared to $149.3 million in the same period of 2020 [122]. - Net sales to external customers increased by 55% in U.S. dollars during the three months ended March 31, 2021, reflecting strong growth in most product categories [123]. Profitability - Gross profit as a percentage of net sales was 58.6% for the three months ended March 31, 2021, compared to 57.7% for the same period in 2020 [106]. - Segment profit for U.S. Operations increased by $18.7 million, reaching $63.7 million for the three months ended March 31, 2021 [115]. - Total net sales for Swiss Operations increased 21% in U.S. dollars, with segment profit rising to $64.9 million, a 20% increase [118]. - Western European Operations reported total net sales of $244.6 million, a 25% increase, with segment profit up 57% to $37.9 million [119]. - Segment profit rose by $13.8 million for the three months ended March 31, 2021, primarily due to higher net sales volume and cost savings initiatives [121]. Expenses - Research and development expenses increased 14% in U.S. dollars during the three months ended March 31, 2021, representing 4.9% of net sales [108]. - Selling, general and administrative expenses increased 12% in U.S. dollars, accounting for 27.6% of net sales for the three months ended March 31, 2021 [109]. Cash Flow and Capital Expenditures - Cash provided by operating activities totaled $158.9 million for the three months ended March 31, 2021, compared to $65.5 million in the same period of 2020 [129]. - Capital expenditures amounted to $24.6 million for the three months ended March 31, 2021, up from $18.8 million in the same period of 2020 [130]. Debt and Share Repurchase - Total debt as of March 31, 2021, was $1.613 billion, with approximately $460.7 million of additional borrowings available under the Credit Agreement [132]. - The share repurchase program has $2.8 billion of remaining availability as of March 31, 2021, with $262.5 million spent on repurchases during the three months ended March 31, 2021 [137]. Currency Impact - A 1% strengthening of the Swiss franc against the euro is estimated to reduce earnings before tax by approximately $1.6 million to $1.8 million annually [139]. Acquisition - The company acquired PendoTECH for an initial cash payment of $185 million, with potential additional consideration of up to $20 million [136].