Acquisition of Dage Fuels 14 Percent Volume Growth in Advanced Technology Systems Sales
WESTLAKE, Ohio – February 27, 2007 –
Nordson Corporation (Nasdaq:NDSN) today announced record sales for the first quarter, which ended January 31, 2007. Worldwide sales for the quarter were $203.9 million, a 3 percent increase compared with sales from continuing operations of $197.4 million for the same period of 2006. Sales growth in the first quarter consisted of 3 percent from the acquisition of Dage Holdings, which was completed on December 14, 2006, and 3 percent from favorable currency effects; organic volume was down 3 percent.
On a diluted basis, earnings per share for the quarter were $.46, as compared with $.52 from continuing operations for the same period of 2006. Current year earnings per share include a charge of approximately $.05 per share for the impact of purchase accounting and financing costs related to the acquisition of Dage.
First-quarter sales volume for the Advanced Technology Systems segment grew by 14 percent over the prior year period; Dage revenue was responsible for most of the increase. Volume was down 3 percent in the Adhesive Dispensing Systems segment and 10 percent in the Finishing and Coating Systems segment.
On a geographic basis, sales volume for the first quarter was up 14 percent in the Asia Pacific region and 1 percent in Europe. Volume was down 3 percent in the United States, 6 percent in the Americas and 9 percent in Japan.
Backlog at the end of the first quarter was approximately $101 million, up more than $32 million since the beginning of the fiscal year, calculated at constant exchange rates.
“After a slow start to the fiscal year, I am encouraged by the rebound in orders we’ve seen in the past eight weeks in all three business segments,” said Edward P. Campbell, chairman and chief executive officer. “In the eight-week period ending February 16, 2007, order volume is up 13 percent over the prior year, including the impact of the Dage acquisition. By segment, order volume is up 26 percent in Advanced Technology Systems, 23 percent in Finishing and Coating Systems and 5 percent in Adhesive Dispensing Systems.”
“I also am pleased with the market opportunities and volume growth Dage brought to our Advanced Technology Systems segment,” Campbell said. “Since the time of acquisition through February 16, 2007, Dage order volume is up 14 percent from the same period of last year. Additionally, our end-market product diversification within this segment has helped moderate the impact of the deceleration of sales taking place across certain segments of the global technology industry.”
Nordson will broadcast its first quarter conference call on the investor relations page of its Web site, www.nordson.com, on Wednesday, February 28, 2007 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 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. Click here for a summary of sales, income and earnings.
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 used for curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has more than 3,800 employees worldwide, and direct operations and sales support offices in 30 countries.
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Contact: Derrick Johnson, Director, Corporate Communications