Mettler-Toledo International Inc. (NYSE:MTD) Q4 2014 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 05:00 pm ET

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Mettler-Toledo International Inc. (NYSE:MTD) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good day, ladies and gentlemen, and welcome to our Fourth Quarter 2014 Mettler-Toledo International Earnings Conference Call. My name is Dustin, and I will be your audio coordinator for today. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions) I would now like to turn our presentation over to your hostess for today's call, Ms. Mary Finnegan. Please proceed, ma'am.

Executive
Mary T. Finnegan

Thanks, Dustin, and good evening, everyone. I am Mary Finnegan. I'm the Treasurer and responsible for IR at Mettler-Toledo, happy you are joining us tonight for the call. I am joined here by Olivier Filliol, our CEO; and Bill Donnelly, our EVP. I need to cover just a couple of administrative matters. This call is being webcast and is available for replay on our website. A copy of the press release and the presentation that we will refer to is also available on the website. Let me summarize the safe harbor language, which is outlined on page one of the presentation.

(Forward-Looking Cautionary Statements). On today's call, we may use non-GAAP financial measures. More detailed information with respect to the use of and differences between the non-GAAP financial measure and the most directly comparable GAAP measure is provided in our Form 8-K.

I will now turn the call over to Olivier.

Executive
Olivier Filliol

Welcome to everyone on the call. I will start with a summary of the quarter and then Bill will provide details on our financial results and guidance. I will then have some additional comments before we open the lines for Q&A.The highlights for the quarter are on page two of the presentation. We are pleased to end the year with very solid broad-based sales growth in the fourth quarter.

Local currency sales increased 6%, above the expectations, we outlined with you the last time we spoke. Europe's growth was better than expected and it's particularly impressive given the very strong growth in the year earlier period. Americas continues to perform quite well. And Asia-Rest of World also had solid growth. For China specifically, sales growth was on target with our expectations. Our margin enhancement and cost control initiatives continued to yield benefits, which contributed to our margin improvements and EPS growth in the quarter. This despite currency headwinds.

While there is economic uncertainty in certain regions of the world, and recent currency movements will create greater headwinds than we had expected. We feel good about our outlook for 2015. I will have some further comments on 2015 later on the call, but now will turn it to Bill to cover the numbers.

Executive
William Donnelly

Sales were $697.4 million in the quarter, an increase to 6% in local currency. On a U.S. dollar basis, sales increased by 2%, as currency reduced sales by 4% in the quarter. Turning to page three of the presentation, we outline sales by geography. In the quarter, local currency sales increased by 6% in both Europe and the Americas, and increased by 5% in Asia-Rest of World, as compared to the prior year.

For China