Mettler-Toledo International Inc.

It was a successful first quarter for Mettler-Toledo International, with solid sales and profit growth and an all-around beat. Sales growth was broad-based across various markets, driven by effective market identification and attractive growth opportunities. Strong execution on margin initiatives and cost control resulted in solid earnings growth despite significant currency headwinds. While there is increased uncertainty in the economy and end markets, Mettler-Toledo’s management believes it can capitalize on growth opportunities and manage costs effectively. Lab and core industrial products experienced good growth, while the pipette business faced a decline in sales. Food Retail delivered robust growth, driven by project activity in the Americas and Europe. The company has a long-standing presence in China and the management is optimistic about the region’s long-term growth opportunities, particularly in emerging industries like lithium-ion batteries and pharmaceuticals. With their advanced solutions and government support, they believe to be well-positioned to meet the demand for automation and compliance. We give Mettler-Toledo International a ‘Hold’ rating with a revised target price.