• Sales Grow 20 Percent to $245 Million
• Operating Profit Increases 29 Percent to $36 Million
• Diluted Earnings Per Share Increase 35 Percent to $0.62
WESTLAKE, Ohio – February 21, 2008 – Nordson Corporation (Nasdaq:NDSN) today reported record first quarter sales, operating profit and diluted earnings per share. For the quarter ending January 31, 2008, sales reached a record $245 million, a 20 percent increase over sales in the same period a year ago. Volume increased 15 percent with the remainder coming from the favorable effects of currency translation. Operating profit for the quarter improved to a record $36 million, a 29 percent increase over the same period a year ago. First quarter diluted earnings per share were a record $0.62, an increase of 35 percent over the same period a year ago.
“Nordson delivered another excellent quarter as the momentum with which we ended fiscal 2007 continued into the new year,” said Chairman, President and Chief Executive Officer Edward P. Campbell. “Demand for Nordson products and services grew in all segments and each geographic region.”
Segment & Regional Results
All segments contributed solid revenue growth in the quarter over the previous year. Revenue increased 41 percent in the Advanced Technology segment, 13 percent in the Adhesive Dispensing segment, and 8 percent in the Industrial Coating and Automotive segment.
“We are pleased with the excellent operating performance of the Adhesive Dispensing segment in the quarter. With orders growing faster than sales, the segment is also well positioned for continued strength in future quarters,” said Campbell. “Sales growth in the Advanced Technology segment was driven by both incremental sales from recent acquisitions and expansion in our core product lines, yielding growth in operating profit of 26 percent in the quarter. In addition, the Industrial Coating and Automotive segment continues to deliver on its restructuring, evidenced by the approximately four percentage point improvement in operating margin.”
On a geographic basis, first quarter sales revenue increased 44 percent in Asia Pacific, 19 percent in Europe, 18 percent in Japan, 14 percent in the United States and 8 percent in the Americas.
“The global nature of our enterprise continued to serve us well during the quarter, as we realized solid revenue increases in all of our geographic regions,” said Campbell. “Nordson especially benefited this quarter from powerful growth in Asia Pacific, where our abilities to meet the specific engineering needs of customers and provide them with local support continued to make us the region’s supplier of choice.”
Order Rates and Backlog
Order rates for the 12 week period ending February 17, 2008, measured in constant currency, increased 8 percent over the same period a year ago. Order rates by segment and geography are provided in the accompanying financial tables, with pro-forma growth in order rates calculated as though fiscal year 2007 acquisitions were owned in both years.
Backlog at the end of the first quarter was approximately $131 million, an increase of 24 percent compared with $106 million for the same period a year ago. Backlog increased by approximately $32 million or 32 percent during the quarter. Backlog amounts are calculated at January 31, 2008 exchange rates.
For the second quarter of fiscal year 2008, sales are expected to reach a record level, with growth of 14 to 18 percent over the same period a year ago. Diluted earnings per share are also expected to reach a record level, with guidance in the range of $.77 to $.86. The midpoint of this guidance represents a 34 percent increase over diluted earnings per share of $.61 in the prior year.
“With a strong first quarter behind us and a positive outlook for the second quarter, 2008 remains on pace to be another record year for Nordson,” said Campbell. “We continue to see opportunity in a broadening group of markets and customers worldwide, as our recent acquisitions continue to strengthen our portfolio of precision solutions. In addition, our global diversification also gives us the confidence to weather any regional economic fluctuations should they occur.”
Nordson will broadcast its first-quarter conference call on the investor relations page of its Web site, www.nordson.com, on Friday, February 22, 2008 at 8:30 a.m. EST. 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, Shareholder Relations, at (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 filing 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 equipment used in the testing and inspection of electronic components as well as technology-based systems for curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has more than 4,100 employees worldwide, and direct operations and sales support offices in 30 countries.
Barbara Price, Manager, Shareholder Relations
(440) 414-5344 firstname.lastname@example.org
James R. Jaye, Director, Corporate Communications
(440) 414-5639 email@example.com
A summary of sales, income and earnings is presented in the attached tables.