Precision instruments maker Mettler-Toledo International Inc. (MTD) reported a higher fourth-quarter profit on Thursday, reflecting improved business conditions in some of its markets, particularly China. Reported earnings for the quarter came in above the current estimates of Street analysts. The company also provided guidance for the first quarter and fiscal 2010, with first-quarter earnings expectations lower than the present estimates of analysts.
The Switzerland-based company's fourth-quarter net income increased to $69.44 million or $2.01 per share from $62.92 million or $1.84 per share a year ago.
On an adjusted basis, earnings for the fourth quarter were $2.09 per share, up 5% over the prior-year earnings of $2.00 per share. On average, nine analysts polled by Thomson Reuters estimated earnings of $1.97 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the fourth quarter increased to $511.68 million from $509.69 million for the fourth quarter of 2008. In local currency basis, sales declined 5% year-over-year. Reported sales growth was 0% due to a 5% currency benefit. Analysts expected revenues of $505.39 million for the quarter.
By region, local currency sales decreased 10% in Europe and 5% in the Americas. In Asia/Rest of World, local currency sales increased 3%.
The company's gross profit for the quarter climbed to $269.99 million or 52.8% of sales from $264.24 million or 51.8% of sales. Adjusted operating income for the fourth quarter amounted to $107.3 million, a 6% increase from the prior-year amount of $101.0 million.
For full year 2009, net income declined to $172.59 million or $5.12 per share from $202.78 million or $5.92 per share in 2008. Sales for full year 2009 were $1.73 billion, a 10% decline in local currency sales, as compared with $1.97 billion in 2008.
Commenting on the results, Olivier Filliol, chief executive officer of the company, said, "We saw improved business conditions in some segments during the quarter, particularly in China. With our solid market positions, comprehensive product portfolio and extensive marketing programs, we are benefiting as our markets gradually recover from the economic downturn. Markets remain challenging in the Americas and Europe in our core industrial and food retailing businesses. Improved market conditions and the benefits of our cost reduction programs helped us to generate record operating margins in the quarter. We are pleased that we generated operating profit and EPS growth in the quarter despite the decline in sales."
Looking forward to the first quarter of 2010, the company anticipates local currency sales to be in the range of 1% to 3% and adjusted earnings per share in the range of $0.98 to $1.04, an increase of 3% to 9%. Analysts currently expect earnings of $1.06 per share on revenues of $393.98 million for the first quarter.
For fiscal 2010, the company said forecasting continues to be challenging given the ongoing uncertainty in the global economy. Based on the current assessment, the company anticipates that local currency sales growth in 2010 will be in the range of 3% to 5% and adjusted earnings per share will be in the range of $5.90 to $6.15, an increase of 6% to 10%. Analysts are looking for earnings of $6.13 per share on revenues of $1.82 billion for fiscal 2010.
MTD closed Thursday's regular trading at $96.29, down $3.95 or 3.94%, on a volume of 360 thousand shares on the New York Stock Exchange.
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