01—Abstract
Summary
Summary of the 10-K filed March 18, 1999. Cited figures are marked; the original filing is the authoritative source.
Mettler-Toledo International Inc. reported net sales of $935.7 milliona for 1998, compared with $878.4 million in 1997, with local-currency growth of 8% and U.S.-dollar growth of 7%.
Net earnings were $37.6 millionb, or $0.92 per diluted share, versus a net loss of $65.1 million in 1997, which included $41.2 million of extraordinary debt-extinguishment charges. Adjusted Operating Income rose to $101.0 million, or 10.8% of sales, from $81.5 million, or 9.3% of sales, in 1997. The company attributes its strength to non-cyclical pharmaceutical and food and beverage end markets and a diversified customer base, with no single customer exceeding 2.6% of 1998 net sales.
Management describes the company as the world's largest manufacturer and marketer of weighing instruments. The company's balance sheet shows total assets of $820.4 millionc, long-term debt of $340.2 million, and shareholders' equity of $53.8 million at year-end 1998. Cash provided by operating activities increased to $72.0 million from $55.6 million.
Management flagged weak Asian and emerging-market conditions, with local-currency sales in Asia and other markets down 4%d, and said it expects those conditions to continue to affect results. The company has never paid dividends on its common stock and its credit agreement restricts dividend payments.
During 1998 the company acquired Bohdan Automation, Applied Systems and Myriad Synthesizer Technology, and in February 1999 it agreed to acquire the Testut-Lutrana group, a French scale maker with annual sales of approximately $50 million, subject to French regulatory approval. The company also dismissed KPMG Fides Peat as auditors on March 10, 1999 and engaged PricewaterhouseCoopers for fiscal 1999.
02—Key points
Key Highlights
- 1998 net sales of $935.7 million, up from $878.4 million in 1997; local-currency growth of 8%
- Net earnings of $37.6 million ($0.92 diluted EPS) versus a 1997 net loss of $65.1 million
- Adjusted Operating Income of $101.0 million, or 10.8% of sales, compared with $81.5 million, or 9.3%, in 1997
- Cash provided by operating activities rose to $72.0 million from $55.6 million
- Long-term debt of $340.2 million and shareholders' equity of $53.8 million at December 31, 1998
- Local-currency sales in Asia and other markets declined 4% in 1998 due to emerging-market economic conditions
- Pending acquisition of Testut-Lutrana group (France, approximately $50 million in annual sales), subject to regulatory approvals
03—Questions
Frequently Asked Questions
How did Mettler-Toledo perform financially in 1998?
Net sales were $935.7 million, up from $878.4 million in 1997, and net earnings were $37.6 million, or $0.92 per diluted share, compared with a 1997 net loss of $65.1 million. The 1997 loss included $41.2 million of extraordinary charges related to debt extinguishment.
Does Mettler-Toledo pay dividends?
No. The company has never paid dividends on its common stock, does not anticipate paying cash dividends in the foreseeable future, and its credit agreement restricts its ability to pay them.
What are the main risks flagged in the filing?
Management cited weak economic conditions and currency devaluations in Asia and other emerging markets, where local-currency sales fell 4% in 1998, and noted that a strong Swiss franc or a weak Euro could affect profitability. The filing also discusses Year 2000 and Euro-conversion readiness and environmental liabilities at certain facilities.
What acquisitions did the company complete or announce?
In 1998 the company acquired Bohdan Automation, Applied Systems and Myriad Synthesizer Technology, which together strengthen its position in automated drug and chemical compound discovery. In February 1999 it announced an agreement to acquire the Testut-Lutrana group in France, which has annual sales of approximately $50 million, subject to French government approval and other closing conditions.
Who are the company's main customers and how concentrated is its revenue?
The company sells to a diversified customer base in laboratory, industrial and food retailing markets, and no single customer accounted for more than 2.6% of 1998 net sales. Sales were 46% from Europe, 43% from North and South America, and 11% from Asia and other countries.
04—Continue