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Nordson Corporation Reports Fourth-Quarter Financial Results; Achieves Record Sales and Earnings Per Share in 2005 Fiscal Year

Published on 2005-12-14. Author : SpecialChem

WESTLAKE, Ohio -- Nordson Corporation (Nasdaq: NDSN - News) reported record sales and earnings for the fourth quarter, which ended October 30, 2005. Sales for the fourth quarter reached $239.8 million, a 5 percent increase over sales of $228.4 million for the same period of 2004. Virtually all of this increase was attributed to volume growth.

On a diluted basis, fourth-quarter earnings per share were $.80, a 51 percent increase over the prior year's $.53, which included a $3.3 million pretax charge, or $.06 per share on an after-tax basis, related to a disposition of a minority equity investment.

Fourth-quarter sales volume for the Advanced Technology segment was up 41 percent. Volume was down 4 percent in each of the Adhesive Dispensing and Finishing and Coating segments. On a geographic basis, fourth-quarter volume was up 6 percent in the United States, 18 percent in the Americas and 24 percent in the Asia Pacific region. Volume was down in Europe and Japan by 2 percent and 5 percent, respectively.

Annual sales for the fiscal year, which ended October 30, 2005, were a record $839.2 million, a 6 percent increase from fiscal 2004 sales of $793.5 million. Sales volume was up 4 percent, while favorable currency effects contributed an additional 2 percent to sales growth. On a diluted basis, earnings per share for the year were a record $2.14, compared with $1.73 in 2004. Current year earnings per share include an $.08 favorable effect from a lower effective tax rate related primarily to recognition of foreign tax credits.

Backlog at year-end was approximately $78 million, compared with $77 million for the same period of the prior year at 2005 actual exchange rates.

"I am pleased with Nordson's strong performance for both the fourth quarter and the entire year, as we have again achieved record numbers in sales volume and earnings per share," said Edward P. Campbell, chairman and chief executive officer.

"Our Advanced Technology segment continues to produce exceptional results," Campbell said. "I am also encouraged by the performance of our core Adhesive Dispensing businesses. Sales volume for the segment was up 6 percent, when excluding the large engineering systems businesses."

"We continue to see positive results from our ongoing focus to improve operating efficiencies, including achieving wider operating margins in 2005," Campbell noted. "In addition, our recent actions in the Finishing and Coating segment will further improve efficiencies."

As previously announced, Nordson will pay a first-quarter 2006 cash dividend of $0.165 per common share on January 4, 2006 to shareholders of record on December 19, 2005. Nordson has increased its dividend per common share for 42 consecutive years.

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.

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.

Source: Nordson Corporation


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