Mettler-Toledo forecast dull third-quarter profit on weak China demand

Mettler-Toledo International

01/08/2024 23:38

Aug 1 (Reuters) - 
    Medical equipment maker Mettler-Toledo International  MTD.N 
forecast third-quarter profit below estimates on Thursday, a
sign of a weaker-than-expected recovery in sales in its key
market China.
  
    Lifesciences firms including lab equipment maker
Mettler-Toledo have seen sluggish demand for their instruments
used in drug development as cash-strapped biotech clients try to
navigate a funding crunch amid high interest rates.
        Slowing growth in China has further crimped demand for
Mettler. In its first-quarter earnings, the company had flagged
that it continued to see softness in China.
    "As expected, market conditions in China remained weak,"
said CEO Patrick Kaltenbach.
    The firm expects third-quarter adjusted profit to be in the
range of $9.90 to $10.05 per share, below estimates of $10.36
per share.
    Its quarterly sales fell 4% to $946.8 million, above
analysts' average estimate of $929.1 million.
    The Columbus, Ohio-based firm reported adjusted profit for
the quarter of $9.65 per share, versus analysts' expectations of
$9.03 per share.
    Even though the company raised its 2024 adjusted profit to
be in the range of $40.20 to $40.50 per share, from its previous
range of $39.90 to $40.40 apiece, its midpoint came 5 cents
below estimates.
    Analysts, on average, expect a profit of $40.40 per share,
for the year, according to LSEG data.
    Peer Waters Corp  WAT.N  lowered its annual profit forecast
last week, as it anticipates reduced demand for its products and
services used in drug development and research.

 (Reporting by Vaibhav Sadhamta; editing by Alan Barona)
 ((Vaibhav.Sadhamta@thomsonreuters.com))