METTLER TOLEDO INTERNATIONAL INC
For the period ended Mar 31, 2025. Filed May 2, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
MTD$1,722.15+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001037646-24-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001037646-25-000021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 82 previous paragraphs and 84 current paragraphs.
28 unchanged; 37 reworded; 19 added; 17 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Recent developments in global trade disputes/tariffs
Current report
In 2025, the U.S. government enacted an incremental 10% tariff on imported products as well as higher tariffs on imports from certain other countries, including an additional 145% tariff on imports from China and a 25% tariff on non-USMCA products imported from Mexico. In response, the Chinese government implemented additional tariffs of 125% on imports from the U.S. The tariffs became effective at various points during 2025, especially in April 2025. We estimate the associated annualized cost increase of the incremental 2025 tariffs is approximately $115 million (assuming the
Current report
22 - above rates). The U.S. government has indicated it may make further changes to tariff rates in the future. We are implementing various actions to mitigate the effect of the tariffs.
Current report
The recent escalation in global trade disputes/tariffs has increased economic uncertainty in our end markets and the global economic environment, including increasing the risk of recession in many countries, and market conditions may change quickly. Although we are implementing various actions to mitigate the effect of the tariffs, they could adversely impact our financial results and could have a greater impact on our operating results in future periods. Please refer to Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 for more information.
Current report
Net sales were $883.7 million for the three months ended March 31, 2025, compared to $925.9 million for the corresponding period in 2024. Sales decreased 5% in U.S. dollars and 3% in local currencies for the three months ended March 31, 2025. We estimate that net sales growth for the three months ended March 31, 2025 was reduced approximately 6% from the recovery of previously disclosed shipping delays during the three months ended March 31, 2024 related to a new external European logistics service provider. Excluding this impact, sales increased 3% in local currency for the three months ended March 31, 2025 compared to the corresponding period in 2024.
Current report
We expect our gross margin during the remainder of 2025 will be negatively impacted by the recent escalation in global trade disputes/tariffs. As previously mentioned, we are implementing various actions to mitigate the effect of the tariffs.
Current report
Selling, general and administrative expenses as a percentage of net sales were 27.5% for the three months ended March 31, 2025 compared to 25.3% in the corresponding period of 2024. Selling, general and administrative expense increased 4% in U.S. dollars and 5% in local currencies during the three months ended March 31, 2025 compared to the corresponding period in 2024. The local currency increase includes sales and marketing investments and the timing of certain costs.
Current report
Amortization expense was $17.2 million for the three months ended March 31, 2025 and $18.2 million for the corresponding period in 2024.
Current report
Interest expense was $16.7 million for the three months ended March 31, 2025 and $19.2 million for the corresponding period in 2024. The decrease in interest expense is primarily related to lower variable interest rates and lower debt.
Current report
Segment profit decreased $9.3 million for the three months ended March 31, 2025 compared to the corresponding period in 2024. Segment profit during the three months ended March 31, 2025 includes lower sales volume from our previously disclosed shipping delay recovery in the prior year and higher expenses.
Current report
Total net sales decreased 19% in U.S. dollars and 17% in local currency for the three months ended March 31, 2025 compared to the corresponding period in 2024. Net sales to external customers decreased 13% in U.S. dollars and 11% in local currency for the three months ended March 31, 2025 compared to the corresponding period in 2024. The growth in net sales to external customers during the three months ended March 31, 2025 was reduced by approximately 12% from the recovery of previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the increase in net sales to external customers in local currency for the three
Current report
25 - months ended March 31, 2025 includes growth in industrial, especially product inspection, and food retailing products partially offset by a decline in laboratory products.
Current report
Total net sales decreased 2% in U.S. dollars and 1% in local currency for the three months ended March 31, 2025 compared to the corresponding period in 2024. Net sales to external customers decreased 1% in U.S. dollars and were flat in local currency for the three months ended March 31, 2025 compared to the corresponding period in 2024. The growth in net sales to external customers during the three months ended March 31, 2025 was reduced by approximately 3% from the recovery of previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the increase in net sales to external customers in local currency for the three
Current report
26 - months ended March 31, 2025 includes growth in laboratory products, while industrial products were flat compared to the corresponding prior year period.
Current report
Segment profit increased $0.2 million for the three month period ended March 31, 2025 compared to the corresponding period in 2024. Segment profit for the three month period ended March 31, 2025 includes benefits from our cost savings initiatives, offset in part by unfavorable currency and lower sales volume.
Current report
Total net sales decreased 2% in U.S. dollars and increased 2% in local currencies during the three months ended March 31, 2025 compared to the corresponding period in 2024. Net sales to external customers decreased 5% in U.S. dollars and 1% in local currency for the three months ended March 31, 2025 compared to the corresponding period in 2024. The growth in net sales to external customers during the three months ended March 31, 2025 was reduced by approximately 9% from the recovery of previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the increase in net sales to external customers in local currency for the three months ended March 31, 2025 includes strong growth in laboratory products, as well as product inspection.
Current report
Segment profit decreased $0.7 million for the three months ended March 31, 2025 compared to the corresponding period in 2024. The decrease in segment profit is primarily due to lower volume from our previously disclosed shipping delay recovery in the prior year and unfavorable currency, offset in part by benefits from our margin expansion initiatives.
Current report
In January 2025, the Company entered into an agreement to issue and sell EUR 100 million 10 1/2-year Senior Notes with a fixed interest rate of 3.8% (3.8% Euro Senior Notes) in a private placement, which will mature in July 2035. The 3.8% Euro Senior Notes are unsecured obligations
Current report
28 - of the Company and the terms are consistent with the previous Notes as disclosed in Note 10 to the Company's consolidated financial statements for the year ended December 31, 2024. The Company used the proceeds from the sale of the Notes to refinance existing indebtedness and for other general corporate purposes.
Removed paragraphs (17)
Previous report
Net sales were $954.5 million and $942.5 million for the three months ended September 30, 2024, and 2023, respectively, and $2.8 billion and $2.9 billion for the nine month periods ended September 30, 2024 and 2023, respectively. Sales in U.S. dollars increased 1% for the three month period and decreased 1% for the nine month period ended September 30, 2024. Excluding the effect of currency exchange rate fluctuations, or in local currencies, net sales increased 1% for the three month period and were flat for the nine month period ended September 30, 2024. We estimate that
Previous report
25 - net sales for the nine month period ended September 30, 2024 benefited by approximately 2% from the recovery of our previously disclosed shipping delays in 2023 related to a new external European logistics service provider.
Previous report
Selling, general and administrative expenses as a percentage of net sales were 24.0% and 23.1% for the three months ended September 30, 2024 and 2023, respectively, and were 24.7% and 23.9% for the nine months ended September 30, 2024 and 2023, respectively. Selling, general and administrative expenses increased 5% in both U.S. dollars and local currencies for the three months ended September 30, 2024, and increased 3% in both U.S. dollars and local currencies for the nine months ended September 30, 2024, respectively, compared to the corresponding periods in 2023. The increase includes higher variable compensation costs, offset in part by benefits from our cost savings initiatives.
Previous report
Amortization expense was $18.2 million and $18.3 million for the three months ended September 30, 2024 and 2023, respectively, and $54.6 million and $54.1 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
Interest expense was $18.6 million and $20.3 million for the three months ended September 30, 2024 and 2023, respectively, and $56.8 million and $57.7 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
Segment profit increased $6.7 million and $14.6 million for the three and nine month period ended September 30, 2024, respectively, compared to the corresponding periods in 2023. Segment profit increased during the three and nine months ended September 30, 2024 primarily due to improved business mix, and benefits from our margin expansion and cost savings initiatives.
Previous report
Total net sales were flat in U.S. dollars and decreased 1% in local currencies for the three months ended September 30, 2024 and increased 3% in U.S. dollars and 2% in local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers increased 2% in U.S. dollars and 1% in local currencies for the three months ended September 30, 2024, and increased 5% in U.S. dollars and 4% in local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales benefited by approximately 3% from our previously disclosed shipping delays during the nine months ended September 30, 2024. Net sales to external customers for the three and nine months ended September 30, 2024 reflect modest growth in most product categories. Net sales to external customers for the three months ended September 30, 2024 also reflect strong growth in process analytics.
Previous report
29 - volume, favorable business mix and benefits from our margin expansion and cost savings initiatives.
Previous report
Total net sales increased 4% in U.S. dollars and 3% in local currency for the three months ended September 30, 2024 and decreased 7% in U.S. dollars and 5% in local currency for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers increased 1% in both U.S. dollars and local currency for the three months ended September 30, 2024 and decreased 17% in U.S. dollars and 15% in local currency during the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales benefited by approximately 1% from our previously disclosed shipping delays during the nine months ended September 30, 2024. The increase in net sales to external customers for the three months ended September 30, 2024 benefited from easier prior year comparisons while market conditions remained soft. Results included growth in laboratory products, offset in part by a decline in industrial products. Net sales to external customers for the nine months ended September 30, 2024 reflect a significant decline in market demand in most product categories. Uncertainties continue to exist and market conditions may change quickly.
Previous report
Segment profit increased $5.6 million and decreased $20.1 million for the three and nine month periods ended September 30, 2024, respectively, compared to the corresponding periods in 2023. The increase in segment profit for the three months ended September 30, 2024 includes increased sales volume and benefits from our margin expansion and cost savings initiatives. The decrease in segment profit for the nine months ended September 30, 2024 reflects significantly lower sales volumes and unfavorable currency translation.
Previous report
Total net sales increased 5% in U.S. dollars and 7% in local currency for the three months ended September 30, 2024 and increased 4% in U.S. dollars and 6% in local currency for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers increased 3% in U.S. dollars and 5% in local currencies for the three months ended September 30, 2024 and increased 4% in U.S. dollars and 6% in local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales benefited by approximately 3% from our previously disclosed shipping delays during the nine months ended September 30, 2024. Net sales to external customers for the three and nine months ended September 30, 2024 reflect strong growth in laboratory products.
Previous report
Segment profit increased $1.4 million and $2.6 million for the three and nine months ended September 30, 2024, respectively, compared to the corresponding periods in 2023. The increase in
Previous report
30 - segment profit for the three and nine months ended September 30, 2024 is primarily related to increased sales volume and our margin expansion initiatives, offset in part by unfavorable foreign currency translation.
Previous report
In September 2021, we entered into an agreement with the U.S. Department of Defense to increase domestic production capacity of pipette tips and enhance manufacturing automation and logistics. We have received the maximum allowable funding of $35.8 million related to the agreement during prior years, which offset associated capital expenditures.
Previous report
The Inflation Reduction Act (IRA) was enacted on August 16, 2022. The IRA includes provisions imposing a 1% excise tax on net share repurchases that occur after December 31, 2022
Previous report
31 - and introduces a 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income. The financial impact of the IRA was immaterial to our financial statements.
Previous report
In May 2023 we amended our Prior Credit Agreement to replace all references of LIBOR to SOFR and other non-U.S. dollar references as the interest rate benchmark.
Reworded paragraphs (37)
Previous wording
Our interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.
Current wording
Our interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the full year ending December 31, 2025.
Previous wording
Changes in local currency exclude the effect of currency exchange rate fluctuations. Local currency amounts are determined by translating current and previous year consolidated financial information at an index utilizing historical currency exchange rates. We believe local currency information provides a helpful assessment of business performance and a useful measure of results between periods. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We present non-GAAP financial measures in reporting our financial results to provide investors with an additional analytical tool to evaluate our operating results.
Current wording
Changes in local currencies exclude the effect of currency exchange rate fluctuations. Local currency amounts are determined by translating current and previous year consolidated financial information at an index utilizing historical currency exchange rates. We believe local currency information provides a helpful assessment of business performance and a useful measure of results between periods. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We present non-GAAP financial measures in reporting our financial results to provide investors with an additional analytical tool to evaluate our operating results.
Previous wording
The following tables set forth certain items from our interim consolidated statements of operations for the three and nine month periods ended September 30, 2024 and 2023 (amounts in thousands).
Current wording
The following tables set forth items from our interim consolidated statements of operations and comprehensive income for the three month periods ended March 31, 2025 and 2024 (amounts in thousands).
Previous wording
During the three months ended September 30, 2024 we continued to experience soft market demand, particularly in China. We also continue to benefit from the execution of our global sales and marketing programs and our innovative product portfolio. However, there is uncertainty in the economic environment and our end markets, including the risk of recession in many countries, and market conditions may change quickly. The ongoing developments related to Ukraine, the war in the Middle East, and inflation also present several risks to our business as further described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023. These topics could adversely impact our financial results and could have a greater impact on our operating results in future periods.
Current wording
We continue to benefit from the execution of our global sales and marketing programs, our innovative product portfolio, and investments in our field organization, particularly surrounding digital tools and techniques. However, the recent escalation in global trade disputes/tariffs has increased uncertainty in our end markets and the global economic environment, including increasing the risk of recession in many countries, and market conditions may change quickly. The ongoing developments related to global trade disputes/tariffs, Ukraine, and the conflict in the Middle East also present several risks to our business as further described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024. These topics could adversely impact our financial results and could have a greater impact on our operating results in future periods.
Previous wording
Net sales by geographic destination for the three months ended September 30, 2024 in U.S. dollars increased 2% in Europe and 4% in Asia/Rest of World, and decreased 1% in the Americas. In local currencies, our net sales by geographic destination increased 1% in Europe and 4% in Asia/Rest of World, and decreased 1% in the Americas. Our net sales by geographic destination for the nine months ended September 30, 2024 in U.S. dollars increased 5% in Europe and 1% in the Americas, and decreased 8% in Asia/Rest of World. Net sales by geographic destination for the nine months ended September 30, 2024 in local currencies increased 4% in Europe and 1% in the Americas, and decreased 6% in Asia/Rest of World. Net sales in Asia/Rest of World in local currency includes an increase of 1% and a decrease of 15% in China during the three and nine months ended September 30, 2024, respectively. Excluding the benefit of delayed fourth quarter 2023 shipments, local currency sales were flat in Europe and the Americas, and decreased 7% in Asia/Rest of World, with a 15% decline in China, during the nine months ended September 30, 2024. A discussion of sales by operating segment is included below.
Current wording
Net sales by geographic destination for the three months ended March 31, 2025 in U.S. dollars decreased 2% in the Americas, 9% in Europe, and 4% in Asia/Rest of World. In local currencies, our net sales by geographic destination decreased 1% in the Americas, 7% in Europe, and 2% in Asia/Rest of World, including flat sales in China, for the three months ended March 31, 2025 compared to the corresponding period in 2024. Excluding the impact of the recovery of delayed shipments in the prior year, local currency sales increased 3% in the Americas, 4% in Europe, and 3% in Asia/Rest of World, with 3% in China, during the three months ended March 31, 2025. A discussion of sales by operating segment is included below.
Previous wording
Net sales of products decreased 1% in both U.S. dollars and local currencies for the three months ended September 30, 2024 and decreased 3% in U.S. dollars and 2% in local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Service revenue (including spare parts) increased 9% in both U.S. dollars and local currencies for the three months ended September 30, 2024, and increased 7% in both U.S. dollars and local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023.
Current wording
Net sales of products decreased 7% in U.S. dollars and 6% in local currency for the three months ended March 31, 2025 compared to the prior year period. Service revenue (including spare parts) increased 4% in U.S. dollars and 6% in local currency during the three months ended March 31, 2025 compared to the corresponding period in 2024.
Previous wording
Net sales of our laboratory products and services, which represented approximately 56% of our total net sales, increased 5% in both U.S. dollars and local currencies for the three months ended September 30, 2024, and increased 2% in both U.S. dollars and local currencies for the nine months ended September 30, 2024. Laboratory net sales benefited approximately 3% from the previously disclosed shipping delays during the nine month period ended September 30, 2024. The increase in local currency net sales for the three month period ended September 30, 2024 reflects growth in most product categories, especially analytical instruments and process analytics. Laboratory results for the nine month period ended September 30, 2024 were also negatively impacted by a significant decline in China.
Current wording
Net sales of our laboratory products and services, which represented approximately 56% of our total net sales for the three months ended March 31, 2025, decreased 5% in U.S. dollars and 3% in local currencies during the three months ended March 31, 2025. Laboratory net sales growth was reduced by approximately 8%, from the recovery of previously disclosed shipping delays, during the three months ended March 31, 2025. Excluding this impact, the local currency net sales increase in our laboratory-related products includes growth in most product categories with strong growth in process analytics.
Previous wording
Net sales of our industrial products and services, which represented approximately 39% of our total net sales, were flat in both U.S. dollars and local currencies for the three months ended September 30, 2024, and decreased 3% in U.S. dollars and 2% in local currencies for the nine months ended September 30, 2024. Industrial net sales benefited approximately 1% from the previously disclosed shipping delays during the nine months ended September 30, 2024. The local
Current wording
Net sales of our industrial products and services, which represented approximately 39% of our total net sales for the three months ended March 31, 2025, decreased 3% in U.S. dollars and 1% in local currencies during the three months ended March 31, 2025. Industrial net sales growth was
Previous wording
26 - currency net sales of our industrial-related products for the three month period ended September 30, 2024 includes growth in product inspection, offset by a modest decline in core-industrial products.
Current wording
23 - reduced by approximately 3%, from the recovery of previously disclosed shipping delays, during the three months ended March 31, 2025. Excluding this impact, the local currency net sales increase in our industrial-related products includes strong growth in product inspection, offset in part by a modest decline in core-industrial products.
Previous wording
Net sales in our food retailing products and services, which represented approximately 5% of our total net sales, decreased 20% in both U.S. dollars and local currencies for the three months ended September 30, 2024, and decreased 14% in both U.S. dollars and local currencies for the nine months ended September 30, 2024. Retail net sales benefited approximately 2% from the previously disclosed shipping delays during the nine months ended September 30, 2024. The local currency net sales decrease in food retailing products during the three and nine months ended September 30, 2024 is primarily due to the especially strong project related growth in the prior year.
Current wording
Net sales in our food retailing products and services, which represented approximately 5% of our total net sales for the three months ended March 31, 2025, decreased 14% in U.S. dollars and 12% in local currencies during the three months ended March 31, 2025. Retail net sales growth was reduced by approximately 7%, from the recovery of previously disclosed shipping delays, during the three months ended March 31, 2025. Excluding this impact, the local currency net sales decrease in food retailing products reflects the timing of project activity, particularly in Europe.
Previous wording
Gross profit as a percentage of net sales was 60.0% and 59.4% for the three months ended September 30, 2024 and 2023, respectively, and 59.6% and 59.2% for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Gross profit as a percentage of net sales was 59.5% for the three months ended March 31, 2025 compared to 59.2% for the corresponding period in 2024.
Previous wording
Gross profit as a percentage of net sales for products was 61.8% and 61.2% for the three months ended September 30, 2024 and 2023, respectively, and 61.7% and 60.7% for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Gross profit as a percentage of net sales for products was 61.6% and 61.2% for the three month periods ended March 31, 2025 and 2024, respectively.
Previous wording
Gross profit as a percentage of net sales for services (including spare parts) was 54.4% and 53.5% for the three months ended September 30, 2024 and 2023, respectively, and 53.4% and 54.2% for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Gross profit as a percentage of net sales for services (including spare parts) was 53.8% for the three months ended March 31, 2025 compared to 52.9% for the corresponding period in 2024.
Previous wording
The increase in gross profit as a percentage of net sales for the three and nine months ended September 30, 2024 primarily reflects favorable price realization and business mix, offset in part by investments in our service organization.
Current wording
The increase in gross profit as a percentage of net sales for the three months ended March 31, 2025 primarily reflects favorable price realization and benefits from our SternDrive program, partially offset by lower sales volume related to the recovery of shipping delays in the prior year.
Previous wording
Research and development expenses as a percentage of net sales was 4.9% for the three and nine months ended September 30, 2024 and 2023. Research and development expenses increased 2% in U.S. dollars and 1% in local currencies for the three months ended September 30, 2024, and was flat in U.S. dollars and in local currencies for the nine months ended September 30, 2024, respectively, compared to the corresponding periods in 2023.
Current wording
Research and development expenses as a percentage of net sales was 5.2% for the three months ended March 31, 2025 compared to 5.0% in the corresponding period of 2024. Research and development expenses were flat in U.S. dollars and increased 2% in local currencies, during the three months ended March 31, 2025 compared to the corresponding period in 2024.
Previous wording
Restructuring charges were $2.6 million and $7.4 million for the three months ended September 30, 2024 and 2023, respectively, and $17.6 million and $19.7 million for the nine months ended September 30, 2024 and 2023, respectively. Restructuring expenses are primarily comprised of employee-related costs.
Current wording
Restructuring charges were $3.8 million and $9.7 million for the three months ended March 31, 2025 and 2024, respectively. Restructuring expenses are primarily comprised of employee-related costs.
Previous wording
Other charges (income), net includes non-service pension costs (benefits), net (gains) losses from foreign currency transactions and hedging activities, interest income and other items. Non-service pension benefits were $1.9 million for the three months ended September 30, 2024 and 2023, and $5.7 million and $5.6 million for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Other charges (income), net includes non-service pension costs (benefits), net (gains) losses from foreign currency transactions and hedging activities, interest income and other items. Non-service pension benefits for the three months ended March 31, 2025 and 2024 were $3.1 million and $2.0 million, respectively.
Previous wording
Our reported tax rate was 18.3% and 19.7% during the three months ended September 30, 2024 and 2023, respectively, and 15.5% and 18.5% during the nine months ended September 30, 2024 and 2023, respectively. The reported tax rate for the nine month period ended September 30, 2024 includes a non-cash discrete tax benefit of $23 million resulting from the reduction of uncertain tax position liabilities related to the settlement of a tax audit. The provision for taxes is based upon using our projected annual effective tax rate of 19.0% before non-recurring discrete tax items for the three and nine month periods ended September 30, 2024 and 2023. The difference between the Company's projected annual effective tax rate and the reported tax rate for the nine month period ended September 30, 2024 is primarily related to a non-cash discrete tax benefit of $23 million resulting from the reduction of uncertain tax position liabilities related to the settlement of a tax audit. The reported tax rate for the three and nine month periods ended September 30, 2024 is also impacted by the timing of excess tax benefits associated with stock option exercises.
Current wording
Our reported tax rate was 19.0% and 19.5% during the three months ended March 31, 2025 and 2024, respectively. The provision for taxes is based upon using our projected annual effective tax rate of 19.0% before non-recurring discrete tax items for the three month periods ended March 31, 2025 and 2024. The difference between our projected annual effective tax rate and the reported tax rate is related to the timing of excess tax benefits associated with stock option exercises.
Previous wording
Total net sales were flat and increased 2% for the three and nine months ended September 30, 2024, respectively, compared with the corresponding periods in 2023. Net sales to external customers decreased 1% and increased 1% for the three and nine months ended September 30, 2024, respectively, compared with the corresponding periods in 2023. Net sales to external customers benefited by approximately 1% from the previously disclosed shipping delays during the nine months ended September 30, 2024. Net sales to external customers for the three and nine months ended September 30, 2024 reflect a significant decline in food retailing related to strong project activity in the prior year, offset in part by growth in most other product categories. Net sales to external customers for the three months ended September 30, 2024 also reflect strong growth in process analytics.
Current wording
Total net sales decreased 1% and net sales to external customers were flat for the three months ended March 31, 2025 compared with the corresponding period in 2024. The growth in net sales to external customers during the three months ended March 31, 2025 was reduced by approximately 3% from the recovery of previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the increase in net sales to external customers for the three months ended March 31, 2025 includes strong growth in process analytics and product inspection, partially offset by a decline in core-industrial products.
Previous wording
Segment profit increased $15.8 million and decreased $12.6 million for the three and nine months ended September 30, 2024, respectively, compared to the corresponding periods in 2023. Segment profit during the three months ended September 30, 2024 reflects favorable business mix and inter-segment pricing, as well as benefits from our margin expansion and cost savings initiatives. Segment profit for the nine months ended September 30, 2024 includes unfavorable inter-segment pricing, unfavorable foreign currency translation and business mix.
Current wording
Segment profit increased $1.9 million for the three month period ended March 31, 2025 compared to the corresponding period in 2024. Segment profit during the three months ended March 31, 2025 includes favorable inter-segment pricing and benefits from our cost savings and margin expansion initiatives.
Previous wording
Total net sales decreased 2% in U.S. dollars and 3% in local currency for the three months ended September 30, 2024, and increased 2% in U.S. dollars and was flat in local currency for the nine months ended September 30, 2024, respectively, compared to the corresponding periods in 2023. Net sales to external customers increased 6% in U.S. dollars and 5% in local currency for the three months ended September 30, 2024 and increased 10% in U.S. dollars and 8% in local currency for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers benefited by approximately 5% from our previously disclosed shipping delays during the nine months ended September 30, 2024. Net sales to external customers for the three and nine months ended September 30, 2024 reflect strong growth in most product categories, offset in part by a significant decline in food retailing related to strong project activity in the prior year.
Current wording
Total net sales decreased 10% in U.S. dollars and 8% in local currencies during the three months ended March 31, 2025 compared to the corresponding period in 2024. Net sales to external customers decreased 11% in U.S. dollars and 9% in local currencies during the three months ended March 31, 2025 compared to the corresponding period in 2024. The growth in net sales to external customers during the three months ended March 31, 2025 was reduced by approximately 9% from the recovery of previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, net sales to external customers in local currency for the three months ended March 31, 2025 includes modest growth in most categories, partially offset by a significant decline in food retailing related to the timing of customer project activity.
Previous wording
Segment profit decreased $2.4 million and increased $9.8 million for the three and nine month periods ended September 30, 2024, respectively, compared to the corresponding periods in 2023. Segment profit decreased during the three months ended September 30, 2024 primarily due to decreased sales volume, offset in part by benefits from our margin expansion and cost savings initiatives. Segment profit for the nine months ended September 30, 2024 reflects increased sales
Current wording
Segment profit decreased $7.3 million for the three month period ended March 31, 2025 compared to the corresponding period in 2024. Segment profit decreased during the three months ended March 31, 2025 primarily due to lower volume from our previously disclosed shipping delay recovery in the prior year, offset in part by benefits from our margin expansion initiatives and favorable business mix.
Previous wording
Liquidity is our ability to generate sufficient cash flows from operating activities to meet our obligations and commitments. In addition, liquidity includes available borrowings under our Credit Agreement, the ability to obtain appropriate financing and our cash and cash equivalent balances. Currently, our liquidity needs are primarily driven by working capital requirements, capital expenditures, share repurchases and acquisitions. Global market conditions can be uncertain, and our ability to generate cash flow could be reduced by a deterioration in global markets.
Current wording
Liquidity is our ability to generate sufficient cash flows from operating activities to meet our obligations and commitments. In addition, liquidity includes available borrowings under our Credit Agreement, the ability to obtain appropriate financing and our cash and cash equivalent balances. Currently, our liquidity needs are primarily driven by working capital requirements, capital expenditures, share repurchases and acquisitions. Global market conditions can be uncertain, and our ability to generate cash flows could be reduced by a deterioration in global markets.
Previous wording
Cash provided by operating activities totaled $702.2 million during the nine months ended September 30, 2024, compared to $684.4 million in the corresponding period in 2023. The increase for the nine months ended September 30, 2024 is primarily related to working capital, including lower cash incentive payments of approximately $35 million.
Current wording
Cash provided by operating activities totaled $194.4 million during the three months ended March 31, 2025, compared to $190.0 million in the corresponding period in 2024. The increase for the three months ended March 31, 2025 compared to the prior year is primarily related to favorable working capital, offset in part by higher cash incentive payments of approximately $36 million related to prior year performance.
Previous wording
Capital expenditures are made primarily for investments in information systems and technology, machinery, equipment and the purchase and expansion of facilities. Our capital expenditures totaled $62.6 million for the nine months ended September 30, 2024 compared to $72.9 million in the corresponding period in 2023.
Current wording
Capital expenditures are made primarily for investments in information systems and technology, machinery, equipment and the purchase and expansion of facilities. Our capital expenditures totaled $17.3 million for the three months ended March 31, 2025 compared to $17.4 million in the corresponding period in 2024.
Previous wording
We continue to explore potential acquisitions. In connection with any acquisition, we may incur additional indebtedness. During the nine months ended September 30, 2023, $10.0 million of contingent consideration was paid relating to the PendoTECH acquisition of which $5.6 million is included in financing activities for the amount accrued at the acquisition date and $4.4 million is included in operating activities for the amount not accrued at the acquisition date on the Consolidated Statement of Cash Flows in accordance with U.S. GAAP.
Current wording
We continue to explore potential acquisitions. In connection with any acquisition, we may incur additional indebtedness.
Previous wording
Cash flows used in financing activities are primarily comprised of share repurchases. In accordance with our share repurchase program, we spent $637.5 million and $724.0 million on the repurchase of 482,413 shares and 526,019 shares, during the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Cash flows used in financing activities are primarily comprised of share repurchases. In accordance with our share repurchase program, we spent $218.7 million and $212.5 million on the repurchase of 170,957 shares and 173,700 shares, during the three months ended March 31, 2025 and 2024, respectively.
Previous wording
As of September 30, 2024, we had $585.3 million of additional borrowings available under our Credit Agreement, and we maintained $71.6 million of cash and cash equivalents.
Current wording
As of March 31, 2025, approximately $679.8 million of additional borrowings was available under our Credit Agreement, and we maintained $64.3 million of cash and cash equivalents.
Previous wording
In April 2018, two of our non-U.S. pension plans issued loans totaling $39.6 million (Swiss franc 38 million) to a wholly owned subsi diary of the Company. The loans have the same terms and conditions which include an interest rate of SARON plus 97.5 basis points. This rate changed from SARON plus 87.5 basis points in August 2024. The loans were renewed for one year in April 2024.
Current wording
In 2018, two of the Company's non-U.S. pension plans issued loans totaling $39.6 million (Swiss franc 38 million) to a wholly owned subsidiary of the Company. The loans have the same terms and conditions which include an interest rate of SARON plus 87.5 basis points. The loans were renewed for one year in April 2025.
Previous wording
We have $1.9 billion of remaining availability for our share repurchase program as of September 30, 2024. The share repurchases are expected to be funded from cash generated from operating activities, borrowings, and cash balances. Repurchases will be made through open market transactions, and the amount and timing of purchases will depend on business and market conditions, the stock price, trading restrictions, the level of acquisition activity, and other factors.
Current wording
We have $1.5 billion of remaining availability for our share repurchase program as of March 31, 2025. The share repurchases are expected to be funded from cash generated from operating activities, borrowings, and cash balances. Repurchases will be made through open market transactions, and the amount and timing of purchases will depend on business and market conditions, the stock price, trading restrictions, the level of acquisition activity, and other factors.
Previous wording
We have purchased 32.2 million shares at an average price per share of $297.53 since the inception of the program in 2004 through September 30, 2024. During the nine months ended September 30, 2024 and 2023, we spent $637.5 million and $724.0 million on the repurchase of 482,413 and 526,019 shares at an average price per share of $1,321.46 and $1,388.54, respectively. We also reissued 58,909 shares and 70,812 shares held in treasury upon the exercise of stock options and vesting of restricted stock units during the nine months ended September 30, 2024 and 2023, respectively.
Current wording
We have purchased 32.5 million common shares at an average price per share of $307.74 since the inception of the program in 2004 through March 31, 2025. During the three months ended March 31, 2025 and 2024, we spent $218.7 million and $212.5 million on the repurchase of 170,957 shares and 173,700 shares at an average price per share of $1,279.54 and $1,223.35, respectively. We reissued 4,282 shares and 4,898 shares held in treasury for the exercise of stock options and restricted stock units during the three months ended March 31, 2025 and 2024, respectively. In addition, the Company incurred $2.0 million and $2.1 million of excise tax during the three months ended March 31, 2025 and 2024, respectively, related to the Inflation Reduction Act which is reflected as a reduction in shareholders' equity in the Company's consolidated financial statements.
Previous wording
Our earnings are affected by changes in exchange rates. We are most sensitive to changes in the exchange rates between the Swiss franc, euro, Chinese renminbi, and U.S. dollar. We have more Swiss franc expenses than we do Swiss franc sales because we develop and manufacture products in Switzerland that we sell globally, and have a number of corporate functions located in Switzerland. When the Swiss franc strengthens against our other trading currencies, particularly the U.S. dollar and euro, our earnings decrease. We also have significantly more sales in the euro than we do expenses. When the euro weakens against the U.S. dollar and Swiss franc, our earnings also decrease. We estimate a 1% strengthening of the Swiss franc against the euro would reduce our earnings before tax by approximately $2.3 million to $2.6 million annually.
Current wording
Our earnings are affected by changing exchange rates. We are most sensitive to changes in the exchange rates between the Swiss franc, euro, Chinese renminbi, and U.S. dollar. We have more Swiss franc expenses than we do Swiss franc sales because we develop and manufacture products in Switzerland that we sell globally, and have a number of corporate functions located in Switzerland. When the Swiss franc strengthens against our other trading currencies, particularly the U.S. dollar and euro, our earnings decrease. We also have significantly more sales in the euro than we do expenses. When the euro weakens against the U.S. dollar and Swiss franc, our earnings also decrease. We estimate a 1% strengthening of the Swiss franc against the euro would reduce our earnings before tax by approximately $2.4 million to $2.7 million annually.
Previous wording
We also conduct business in many geographies throughout the world, including Asia Pacific, the United Kingdom, Eastern Europe, Latin America, and Canada. Fluctuations in these currency exchange rates against the U.S. dollar can also affect our operating results. The most significant of these currency exposures is the Chinese renminbi. The impact on our earnings before tax of the Chinese renminbi weakening 1% against the U.S. dollar is a reduction of approximately $2.5 million to $2.8 million annually.
Current wording
We also conduct business in many geographies throughout the world, including Asia Pacific, the United Kingdom, Eastern Europe, Latin America, and Canada. Fluctuations in these currency exchange rates against the U.S. dollar can also affect our operating results. The most significant of these currency exposures is the Chinese renminbi. The impact on our earnings before tax of the Chinese renminbi weakening 1% against the U.S. dollar is a reduction of approximately $2.2 million to $2.5 million annually.
Previous wording
In addition to the effects of exchange rate movements on operating profits, our debt levels can fluctuate due to changes in exchange rates, particularly between the U.S. dollar, the Swiss franc and the euro. Based on our outstanding debt at September 30, 2024, we estimate that a 5% weakening of the U.S. dollar against the currencies in which our debt is denominated would result in an increase of approximately $42.6 million in the reported U.S. dollar value of our debt.
Current wording
In addition to the effects of exchange rate movements on operating profits, our debt levels can fluctuate due to changes in exchange rates, particularly between the U.S. dollar, the Swiss franc, and euro. Based on our outstanding debt at March 31, 2025, we estimate that a 5% weakening of the U.S. dollar against the currencies in which our debt is denominated would result in an increase of approximately $47.6 million in the reported U.S. dollar value of our debt.
Previous wording
You should not rely on forward-looking statements to predict our actual results. Our actual results or performance may be materially different than reflected in forward-looking statements because of various risks and uncertainties, including statements about expected revenue growth, inflation, ongoing developments related to Ukraine and the war in the Middle East. You can identify forward-looking statements by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue.”
Current wording
You should not rely on forward-looking statements to predict our actual results. Our actual results or performance may be materially different than reflected in forward-looking statements because of various risks anduncertainties, including statements about expected revenue growth, inflation, ongoing developments related to global trade disputes/tariffs, and the conflicts in Ukraine and the Middle East. You can identify forward-looking statements by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue.”
Previous wording
We make forward-looking statements about future events or our future financial performance, including earnings and sales growth, earnings per share, strategic plans and contingency plans, growth opportunities or economic downturns, our ability to respond to changes in market conditions, planned research and development efforts and product introductions, adequacy of facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, customer demand, our competitive position, pricing, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions, and the impact of inflation, ongoing developments related to Ukraine and the war in the Middle East on our business.
Current wording
We make forward-looking statements about future events or our future financial performance, including earnings and sales growth, earnings per share, strategic plans and contingency plans, growth opportunities or economic downturns, our ability to respond to changes in market conditions, planned research and development efforts and product introductions, adequacy of facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, customer demand, our competitive position, pricing, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions, the impact of inflation, ongoing developments related to global trade disputes/tariffs, and the conflicts in Ukraine and the Middle East on our business.
Previous wording
Our forward-looking statements may not be accurate or complete, and we do not intend to update or revise them in light of actual results. New risks also periodically arise. Please consider the risks and factors that could cause our results to differ materially from what is described in our forward-looking statements, including inflation, the ongoing developments related to Ukraine, and the war in the Middle East. See in particular “Factors Affecting Our Future Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023 and other reports filed with the SEC from time to time.
Current wording
Our forward-looking statements may not be accurate or complete, and we do not intend to update or revise them in light of actual results. New risks also periodically arise. Please consider the risks and factors that could cause our results to differ materially from what is described in our forward-looking statements, including ongoing developments related to global trade disputes/tariffs, inflation, and the ongoing conflicts in Ukraine and the Middle East. See in particular “Factors Affecting Our Future Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 and other reports filed with the SEC from time to time.