- Worldwide Sales Increase Nearly 12 Percent to $231.8 Million
- Earnings Per Share Increase 36 Percent, Reaching a Record $.64
- Advanced Technology Systems Segment Sales Volume Grows by 33 Percent
- Asia Pacific Region Sales Volume Grows by 52 Percent
WESTLAKE, Ohio – May 25, 2006 – Nordson Corporation (Nasdaq:NDSN) today announced record sales, earnings and earnings per share for the second quarter, which ended April 30, 2006. Worldwide sales for the quarter reached a record $231.8 million, an 11.7 percent increase over the same period last year. Volume gains of 15.4 percent were offset by negative currency effects of 3.7 percent.
On a diluted basis, earnings per share for the quarter were $.64, compared with $.47 for the same period of 2005 – a 36 percent increase. Included in second quarter operating expenses was a charge of $1 million, or $.02 per share, related to the adoption in the first quarter of new accounting guidelines for the expensing of stock options. In addition, charges related to the restructuring of the Finishing and Coating Systems segment amounted to approximately $500,000, while restructuring charges for the Adhesive Dispensing and Nonwoven Fiber Systems segment totaled approximately $400,000, for a combined $.02 per share.
Second quarter sales volume for the Advanced Technology Systems segment was up 33 percent. Volume was up 11 percent in the Adhesive Dispensing and Nonwoven Fiber Systems segment and up 7 percent in the Finishing and Coating Systems segment.
On a geographic basis, second quarter sales volume was up in all areas, with the Asia Pacific region seeing volume increases of 52 percent. Volume was up 27 percent in the Americas, 16 percent in Japan, 12 percent in Europe and 4 percent in the United States.
Backlog at the end of the second quarter was approximately $92 million, up more than $13 million since the beginning of the fiscal year, calculated at constant exchange rates.
For the first half of fiscal 2006, sales were a record $429.3 million, a 7.9 percent increase over the first half of 2005. Sales volume increased 11.5 percent, with unfavorable currency effects of 3.6 percent offsetting the gains. Year-to-date earnings per share on a diluted basis were a record $1.11, compared with $.86 for the same period last year.
“We’re very pleased with our performance this quarter, most notably the 15 percent increase in worldwide sales volume,” said Edward P. Campbell, chairman and chief executive officer. “We continue to see tremendous growth in our Advanced Technology Systems segment, which increased 33 percent from this time last year, reflecting success in our strategy of broadening the product offering,” Campbell added. “We are also pleased by the continued improvement of our Adhesive Dispensing segment, which saw an 11 percent growth in sales volume, driven by increases in our Nonwovens, Web Coating and Product Assembly businesses.”
“We are encouraged by the double-digit sales volume increases we saw in all of our International markets, including the record 52 percent growth in the Asia Pacific region. Nordson has long had a broad international presence and that factor is clearly generating value in the current environment,” said Campbell.
Nordson will broadcast its second quarter conference call on the investor relations page of its Web site, www.nordson.com, on Friday, May 26, 2006 at 8:30 a.m. EDT. For persons unable to listen to the live broadcast, a replay will be available for 14 days after the event. Information about Nordson’s investor relations and shareholder services is available from Barbara Price, manager of shareholder relations, by calling (440) 414-5344.
Except for historical information and comparisons contained herein, statements included in this release may constitute “forward-looking statements,” as defined by The Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors, as discussed in the company’s filings with the Securities and Exchange Commission that could cause actual results to differ.
Nordson Corporation is one of the world’s leading producers of precision dispensing equipment that applies adhesives, sealants and coatings to a broad range of consumer and industrial products during manufacturing operations. The company also manufactures technology-based systems for curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has more than 3,600 employees worldwide, and direct operations and sales support offices in 30 countries.
Click here for a summary of sales, income and earnings.
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Contact: Derrick Johnson, Director, Corporate Communications
Phone: 440.414.5639
E-mail: djohnson@nordson.com