MT restructuring boosts operating profit

In local currencies, sales rose just 2 per cent, while net income came in at $32.9 million, compared to $31.3 million in the fourth quarter of 2002. Earnings per share were $2.11, down from $2.21 in 2002 as a result of restructuring charges and a one-time tax gain in the prior period.

Robert Spoerry, MT's chief executive, said that sales growth in the core laboratory instruments and industrial businesses was better than expected. For the full-year, operating profits improved to $161.9 million compared to $136.5 million in 2002 as the effects of the restructuring drive started to be felt, while free cash flow rose 12 per cent to $106 million.

This increase in cash flow has prompted the company to start buying back $100 million of its shares over the next two years.

"We believe this programme will be accretive to earnings per share, enhance shareholder value, improve the liquidity of our stock and mitigate dilution from employee stock options,"​ said Spoerry. He stressed that the buyback would not have an impact on the company's current strategy of adding to its business through acquisitions.

For the full-year, revenues rose 7 per cent to $1.30 billion, with sales down 3 per cent in the Americas and down 2 per cent in Europe, with 17 per cent growth in Asia and the rest of the world.

Spoerry said that in 2003 the company started rolling out a number of new products and expanded its activities in China, and is 'cautiously optimistic' that 2004 will see an improvement in its customers' spending patterns. The company expects growth to be strong in Asia, a little better in the Americas but weak in Europe, with revenues up 2 to 4 per cent for the year in local currencies.