- Strong earnings exceeds consensus and the range of guidance
- Recent acquisitions lead to worldwide 14 percent sales growth to a record $257.7 milliion
- Volume up in all segments and geographic markets
WESTLAKE, Ohio – August 23, 2007 – Nordson Corporation (Nasdaq:NDSN) today announced
sales, earnings and earnings per share for the third quarter, which ended July 31, 2007. Worldwide sales for the quarter reached a record $257.7 million, a 14 percent increase over the same period last year. The growth consisted of 9 percent from acquisitions, 3 percent from core volume growth, and 2 percent from favorable currency effects.
Third quarter sales volume was up 26 percent in the Advanced Technology Systems segment. In addition, the Industrial Coating and Automotive Systems segment achieved a third quarter sales volume increase of 14 percent. This newly named segment combines the segment formerly known as Finishing and Coating Systems with the Automotive unit of the Adhesive Dispensing Systems segment. The Adhesive Dispensing Systems segment (now excluding Automotive) showed a volume increase of 4 percent. All prior year results are adjusted to reflect the new segments.
Third quarter sales volume increased in all geographies, with volume increases of 32 percent in the Americas, 15 percent in Japan, 11 percent in the United States, 10 percent in the Asia Pacific region and 9 percent in Europe.
Backlog at the end of the third quarter was approximately $115 million, up more than $22 million from the same period last year.
Fully diluted earnings per share for the third quarter were $.72. This compares to fully diluted earnings per share from continuing operations of $.77 last year and $.72 including discontinued operations. Prior year results include a nonrecurring tax refund that contributed $.09 to earnings per share. Without last year’s tax refund, current year earnings per share are up 6 percent over prior year results from continuing operations and up 14 percent over prior year results including discontinued operations.
For the first nine months of fiscal 2007, sales were a record $702.9 million, an 8 percent increase over the same period of 2006. Sales growth consisted of 6 percent from acquisitions and 3 percent from favorable currency effects; core volume was down 1 percent. Year-to-date earnings per share on a diluted basis were $1.79, compared with $1.99 from continuing operations and $1.84 including discontinued operations during the same period last year.
“Nordson had a strong third quarter exceeding the consensus of investment analysts and our own range of earnings guidance” said Edward Campbell, chairman and chief executive officer. “I am pleased with the fact that the 14-percent increase in sales is coming from solid growth across all of our segments and geographies. Furthermore, the strength in the quarter’s earnings was masked by a $.05 per share current period charge from acquisition accounting related to acquired inventory. Also, the restructuring of our Industrial Coating and Automotive segment continues to yield benefits, with operating profit margins for the quarter of 13 percent, as compared to 9 percent in last year’s third quarter. Looking forward, lead by recent acquisitions, our order rates continue to reflect strong global demand, with orders in the 12-week period ending August 19 increasing by 12 percent in constant currency over the prior year,” Campbell said.
“Continuing Nordson’s pursuit of growth markets, we are very pleased to announce today, in a separate release, our acquisition of TAH Industries. TAH’s capabilities align well with our strategic plans for the EFD business,” Campbell added.
Nordson will broadcast its third quarter conference call on the investor relations page of its Web site, www.nordson.com, on Friday, August 24, 2007, 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.
A summary of sales, income and earnings is presented in the attached tables.
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 3,900 employees worldwide, and direct operations and sales support offices in 30 countries.
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Contact: Shelly Peet, Vice President, Chief Information Officer
Phone: (440) 414-5604