Mettler-Toledo International Inc. (NYSE:MTD) Q1 2017 Earnings Conference Call - Final Transcript
May 04, 2017 • 05:00 pm ET
(Operator Instructions) Steve Willoughby, Cleveland Research.
Bill, I'm just wondering if you could comment about how you're thinking about the full year now in two areas. Given the strong results here in the first quarter, what are you thinking in terms of overall revenue growth in both China and then for your industrial business overall for the full year?
Sure. So let me start with the China piece of the business. I think we're very happy with the start to the year. And as you guys have seen with us over the years now, when there's tough periods of time in the industrial business, we often kind of bounce back there. And I think we're seeing some of that return of the normal replacement cycle in our Chinese business and just, in general, the improving industrial environmental there. So if we kind of look out to the second half of the year, what's built into our guidance is that some of what we have seen so far won't continue at that same rate, but it should still be better than maybe what we felt let's go back six months ago. Okay?
Then with regard to our industrial business, we do -- we are very happy with the start to the year. We think that maybe even in parts of the world, a little bit better than we expected as well. If I look at Europe, for example, I think that our European industrial business benefited a little bit in the first quarter due to the timing of Easter, as Olivier mentioned on the call. But maybe adjusted for that, we would say, hey, in the western part of the world, yes, maybe things can continue adjusted for slightly maybe tougher comps in the second half and this Easter consideration. We do monitor the PMI numbers. The PMI numbers have been improving, but we're not yet ready to say that, hey, it's a time yet for big growth.
Okay. Just one follow-up then. I believe you made a reference to a $0.10 gain from a sale of a property in Switzerland. Just wanted to confirm whether that was in or out of your guidance.
Yes. So it's out of adjusted EPS. If you kind of look in the press release, you'll see a larger than usual number on the other income line. But it's footnoted to say that we pulled that out then and took that out of adjusted EPS.
Isaac Ro, Goldman Sachs.
Bill, question for you on pricing. I'm curious if you could give a little color on how that's played out year-to-date relative to plan. And you said to us that dropped to the gross margin. It would be helpful if you can quantify that somehow.
Sure. So in the first quarter, we had a net realized price increase of about 190 basis points. Little bit better than we expected, but I also think it's worth saying that some of that comes in areas like, let's pick vehicle, Isaac.