01—Abstract
Summary
Summary of the 10-K filed March 14, 2003. Cited figures are marked; the original filing is the authoritative source.
Mettler-Toledo International Inc. (NYSE: MTD) reported net sales of $1,213.7 milliona for fiscal 2002, up from $1,148.0 million in 2001, and net earnings of $100.4 million, or $2.21 per diluted share, compared with $72.3 million in 2001.
The filing states that local-currency sales rose 3% in 2002, while U.S. dollar-reported sales rose 6%, helped by a weaker U.S. dollar. Europe declined 10% in local currencies, offset by a 16% increase in the Americas (largely from the Rainin acquisition) and a 10% increase in Asia and other markets. Adjusted Operating Income was $165.2 millionb, or 13.6% of net sales, roughly flat in dollar terms versus $165.1 million in 2001.
Net earnings were helped by a $23.1 millionc one-time tax benefit, partly offset by a $28.7 million restructuring charge tied to exiting manufacturing facilities in France and the United States. The balance sheet strengthened, with shareholders' equity rising to $502.4 million from $388.2 million and total assets of $1,303.4 million. Debt net of cash was $281.2 million at December 31, 2002, and the company states it is in compliance with its credit covenants.
Operating cash flow was $115.4 milliond, and capital expenditures were $33.2 million. The company has historically paid no dividends and states that it will evaluate that policy periodically.
The filing describes the company as the world's largest manufacturer of weighing instruments, with sales in 2002 of 40% from Europe, 47% from the Americas and 13% from Asia and other countries. It reports approximately 8,500 employees, a strike at its Bethune, France facility in early 2003 (a facility being closed), and that no single customer accounted for more than 3% of net sales.
02—Key points
Key Highlights
- Net sales rose to $1,213.7 million in 2002 from $1,148.0 million in 2001; local-currency growth was 3% and U.S. dollar growth was 6%.
- Net earnings increased to $100.4 million ($2.21 diluted EPS) from $72.3 million ($1.68 diluted EPS), aided by a $23.1 million one-time tax benefit.
- Adjusted Operating Income was $165.2 million, or 13.6% of net sales, versus $165.1 million, or 14.4%, in 2001; the filing attributes the margin decline mainly to foreign exchange effects.
- A $28.7 million restructuring charge in 2002 relates to exiting manufacturing facilities in France and the United States, with expected savings of $15 million to $20 million.
- Europe sales fell 10% in local currencies, while the Americas rose 16% (principally from the Rainin Instrument acquisition) and Asia and other markets rose 10%.
- Shareholders' equity increased to $502.4 million from $388.2 million; net debt was $281.2 million at year-end 2002, and the company states it is in compliance with its covenants.
- The company has historically paid no dividends on its common stock and states it will evaluate that policy periodically.
03—Questions
Frequently Asked Questions
How did Mettler-Toledo perform in 2002 compared with 2001?
Net sales were $1,213.7 million, up from $1,148.0 million, and net earnings were $100.4 million, up from $72.3 million. Diluted EPS was $2.21 versus $1.68. The 2002 result included a $23.1 million one-time tax benefit and a $28.7 million restructuring charge.
What drove the difference between local-currency and dollar-reported sales growth?
The filing states that local-currency sales grew 3% in 2002, while U.S. dollar-reported sales grew 6%, because the weaker U.S. dollar increased reported sales.
What are the restructuring plans and expected benefits?
In June 2002, management approved plans to exit manufacturing facilities in France and the United States, recording a $28.7 million charge. The company expects to involuntarily terminate about 300 net employees, to substantially complete the consolidation by the end of 2003, and to eliminate $15 million to $20 million of costs.
How is the company's debt and liquidity position?
At December 31, 2002, consolidated debt net of cash was $281.2 million, and the company had $185.6 million of availability under its revolving credit facility. It states it is in compliance with all covenants, and that cash from operations plus existing facilities should be sufficient for at least several years, though no assurance is given.
Does the company pay dividends?
No. The filing states that the company has not historically paid dividends on its common stock, and that it will evaluate this policy periodically, taking into account results, capital requirements, contractual restrictions and other factors.
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