Mettler-Toledo International Inc. (NYSE:MTD) Q1 2017 Earnings Conference Call - Final Transcript

May 04, 2017 • 05:00 pm ET


Mettler-Toledo International Inc. (NYSE:MTD) Q1 2017 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to our First Quarter 2017 Mettler-Toledo International Earnings Conference Call. My name is Doris, and I will be your audio coordinator for today. After the speaker's remarks there will be a Q&A session. (Operator Instructions)

At this time, I would now like to turn our presentation over to your hostess for today's call, Ms. Mary Finnegan. Ma'am, please proceed.

Mary Finnegan

Thanks, Doris, and good evening, everyone. I'm Mary Finnegan. I'm the Treasurer, and I'm also responsible for Investor Relations at Mettler-Toledo. And I'm happy you're joining us this evening. I'm joined by Olivier Filliol, our CEO; and Bill Donnelly, our Executive Vice President.

I need to cover just a couple of administrative matters. The call is being webcast and is available on our website. A copy of the press release and the presentation are also available on the website.

Let me summarize the safe harbor language, which is in page 2 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 the differences between the non-GAAP financial measure and the most directly comparable GAAP measure is in the 8-K.

I will now turn the call over to Olivier.

Olivier Filliol

Thank you, Mary, and welcome to everyone on the call. I will start with a summary of the quarter, and then Bill will provide details in 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 3 of the presentation. We had a great start to the year with excellent sales growth. We had expected sales growth in Q1 to be strong, and local currency sales growth reached 12% in the quarter, better than expected with very good broad-based growth. We are quite pleased with these results, which reflect our ability to capitalize unfavorable market conditions and very strong execution of our growth initiatives. Further progress on our margin initiatives are reflected in the strong margin expansion, which contributed to an excellent 36% growth in EPS for the quarter. All in all, very pleased with first quarter development. Our outlook for Q2 and remainder of the year is also positive.

Let me now hand over to Bill to cover the financials.

Bill Donnelly

Okay. Hello, everybody. I hope you are all having a good day. Sales were $594.6 million in the quarter, an increase of 12% in local currency. The Troemner acquisition contributed approximately 1% to local currency sales growth. On a US dollar basis, sales were 10% -- sales increased by 10% as currencies reduced sales by 2% in the quarter.

On slide number 4, we show local currency sales growth by region. Sales grew 14% in the Americas, 13% in Europe and 9% in Asia/Rest of World. China sales growth was 12%. Growth in the Americas benefited by 3% from the Troemner acquisition. As Olivier already mentioned, you can see that these percentage increases reflect