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Nordson Corporation Announces Record Third Quarter Results

Published on 2006-08-24. Author : SpecialChem

WESTLAKE, Ohio -- Nordson Corporation (Nasdaq:NDSN) announced record sales, earnings and earnings per share for the third quarter, which ended July 31, 2006. Worldwide sales for the quarter reached a record $226 million, a 12.1 percent increase over the same period last year. Volume gains of 11.8 percent were aided by favorable currency effects of 0.3 percent.

Third quarter sales volume for the Advanced Technology Systems segment was up 25 percent. Volume was up 8 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, third quarter sales volume was up in all areas, with the Asia Pacific region's volume increasing 26 percent. Volume was up 11 percent in the United States, 10 percent in Europe, 8 percent in the Americas and 3 percent in Japan.

On a diluted basis, earnings per share for the quarter were $.72, compared to $.50 for the same period of 2005 – a 44 percent increase. Included in third quarter operating expenses was a charge of approximately $850,000, or $.02 per share, related to the adoption in the first quarter of new accounting guidelines for expensing stock options. In addition, charges related to the restructuring of the Finishing and Coating Systems segment amounted to approximately $200,000, while restructuring charges for the UV Curing and Drying Systems business totaled approximately $350,000, for a combined $.01 per share. Third quarter results also included a charge of approximately $2.8 million for estimated remediation costs associated with an environmental claim at a New Richmond, WI, municipal landfill. Also in the third quarter, Nordson recorded a $3.1 million federal tax refund, which resulted in the reduction of our effective tax rate to 23.7 percent, compared to the 33.6 percent for the previous two quarters.

Backlog at the end of the third quarter was approximately $95 million, up more than $15 million since the beginning of the fiscal year, calculated at constant exchange rates.

For the first three quarters of 2006 sales were $655 million, a 9 percent increase over the same period of the prior year. Sales volume increased 12 percent with unfavorable currency effects accounting for the balance. Earnings per share on a diluted basis were $1.84 compared with $1.36 for the same period last year.

"Nordson had another strong quarter, with 12 percent growth in sales volume coming from solid growth across all of our segments and geographies," said Edward P. Campbell, chairman and chief executive officer. "I am particularly pleased with the continued strong performance in our Advanced Technology segment, which had 25 percent sales volume growth. Although we continue to post orders that compare positively to last year, we have seen a deceleration of order growth. This trend, coupled with a particularly strong fourth quarter of 2005, yields an outlook for relatively flat sales for the fourth quarter as compared to the prior year."

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.

Source: Nordson Corporation


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