Exhibit 99.1
Nordson Corporation Reports Excellent Fiscal Year 2010 First Quarter Results
- Sales increase 18 percent over previous year to $221 million
- Operating profit of $36 million nearly triples level of a year ago
- Diluted EPS of $0.78 more than doubles level of a year ago
- Second quarter sales expected to increase 26 to 30 percent over prior year; $0.85 midpoint of EPS guidance more than doubles level of a year ago
WESTLAKE, Ohio--(BUSINESS WIRE)--February 22, 2010--Nordson Corporation (Nasdaq: NDSN) today reported first quarter sales, operating profit and diluted earnings per share that were significantly improved compared to the same period a year ago. For the quarter ending January 31, 2010, sales were $221 million, an 18 percent increase over the prior year’s first quarter sales, with volume up 12 percent and the remainder of the increase coming from the favorable effects of currency translation. Operating profit for the quarter was $36 million, nearly triple the $13 million generated in the first quarter a year ago. First quarter diluted earnings per share were $0.78, inclusive of a $0.09 one-time tax benefit and a $0.01 restructuring charge. This level of earnings per share is more than double the amount of last year’s first quarter.
“Nordson delivered substantially improved results in the quarter, driven by improved order rates, our continued penetration of emerging end markets, ongoing development of new applications, a lower cost structure and the ongoing focus and execution of our global team,” said Nordson President and Chief Executive Officer Michael F. Hilton. “Earnings per share exceeded the high end of our expectations, underpinned by an operating margin that was more than double the level of the prior year’s first quarter and greater than the strong first quarter of 2008. In addition, we continued to generate strong cash flow.”
First Quarter Segment and Regional Results
Nordson delivered year-over-year sales increases in all three business segments and in nearly every geographic region. “We continued to see the strong return of demand in our Advanced Technology segment, where sales improved by 36 percent over the prior year, and operating margin reached 18 percent,” said Hilton. “Adhesive Dispensing sales grew by 12 percent over the prior year, and operating margin remained very strong at 28 percent. Within Industrial Coating Systems, demand from consumer durable goods manufacturers remained soft, though order rates in this segment improved in the later part of the quarter.”
Detailed results by operating segment and geography are included in the attached tables.
Order Rates and Backlog
Order rates for the 12-week period ending February 14, 2010, measured in constant currency, increased 33 percent over the same period a year ago. Order rates by segment and geography are provided in the accompanying financial tables.
Backlog at the end of the first quarter was approximately $102 million, an increase of 26 percent compared with $81 million at the end of the first quarter a year ago, and an increase of 31 percent compared to the end of the fourth quarter of fiscal 2009. Backlog amounts are calculated at January 31, 2010 exchange rates.
Outlook
For the second quarter of fiscal 2010, sales are expected to increase in the range of 26 to 30 percent compared to the second quarter a year ago. Diluted earnings per share are expected to be in the range of $0.81 to $0.89, inclusive of a $0.01 charge related to restructuring activities.
“We are encouraged by current order activity, especially within Advanced Technology Systems and the Asia Pacific region,” said Hilton. “As we look to our second quarter, the restructuring activities and cost reductions we completed over the past year should enable our performance to exceed the strong operating margin level of the quarter just completed. In addition, our customer relationships, geographic footprint, and innovative technology leave us well positioned to take advantage of returning demand wherever it occurs. At the same time, we expect to remain cautious regarding spending, matching our expenditures appropriately with the pace of business recovery and maintaining the structural changes made in 2009.”
Nordson will broadcast its first-quarter conference call on the investor relations page of its Web site, www.nordson.com, on Tuesday, February 23, 2010 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 James R. Jaye, Director of Communications & Investor Relations at (440) 414-5639 or Jim.Jaye@nordson.com.
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, coatings and other materials 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 direct operations and sales support offices in more than 30 countries.
| FIRST QUARTER PERIOD | NORDSON CORPORATION | ||||||||||||||||||
| Period Ending January 31, 2010 | FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| (Unaudited) | (Dollars in thousands except for per-share amounts) | ||||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||
| First Quarter | |||||||||||||||||||
| 2010 | 2009 | ||||||||||||||||||
| Net sales | $ | 220,589 | $ | 186,608 | |||||||||||||||
| Cost of sales | 88,914 | 79,371 | |||||||||||||||||
| Selling & administrative expenses | 95,405 | 94,162 | |||||||||||||||||
| Operating profit | 36,270 | 13,075 | |||||||||||||||||
| Interest expense - net | (1,181 | ) | (2,591 | ) | |||||||||||||||
| Other income (expense) - net | 319 | 6,679 | |||||||||||||||||
| Income before income taxes | 35,408 | 17,163 | |||||||||||||||||
| Income taxes | 8,676 | 6,007 | |||||||||||||||||
| Net Income | $ | 26,732 | $ | 11,156 | |||||||||||||||
| Return on sales | 12 | % | 6 | % | |||||||||||||||
| Return on average shareholders' equity | 28 | % | 8 | % | |||||||||||||||
| Average common shares outstanding (000's) | 33,665 | 33,526 | |||||||||||||||||
Average common shares and common share equivalents (000's) | 34,124 | 33,546 | |||||||||||||||||
| Per share: | |||||||||||||||||||
| Basic earnings | $ | .79 | $ | .33 | |||||||||||||||
| Diluted earnings | $ | .78 | $ | .33 | |||||||||||||||
| Dividends paid | $ | .19 | $ | .1825 | |||||||||||||||
| FIRST QUARTER PERIOD | |||||||||||||||||||
| Period Ending January 31, 2010 | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
CONSOLIDATED BALANCE SHEET | |||||||||||||||||||
| January 31 | October 31 | ||||||||||||||||||
| 2010 | 2009 | ||||||||||||||||||
| Cash and marketable securities | $ | 29,381 | $ | 18,824 | |||||||||||||||
| Receivables | 170,352 | 191,201 | |||||||||||||||||
| Inventories | 105,234 | 97,636 | |||||||||||||||||
| Other current assets | 41,761 | 39,010 | |||||||||||||||||
| Total current assets | 346,728 | 346,671 | |||||||||||||||||
| Property, plant & equipment - net | 115,875 | 118,291 | |||||||||||||||||
| Other assets | 433,886 | 425,712 | |||||||||||||||||
| $ | 896,489 | $ | 890,674 | ||||||||||||||||
| Notes payable and debt due within one year | $ | 6,389 | $ | 5,577 | |||||||||||||||
| Accounts payable and accrued liabilities | 157,284 | 150,845 | |||||||||||||||||
| Total current liabilities | 163,673 | 156,422 | |||||||||||||||||
| Long-term debt | 137,260 | 152,260 | |||||||||||||||||
| Other liabilities | 211,421 | 212,016 | |||||||||||||||||
| Total shareholders' equity | 384,135 | 369,976 | |||||||||||||||||
| $ | 896,489 | $ | 890,674 | ||||||||||||||||
| Other information: | |||||||||||||||||||
| Employees | 3,744 | 3,681 | |||||||||||||||||
| Common shares outstanding (000's) | 33,848 | 33,678 | |||||||||||||||||
| FIRST QUARTER PERIOD | NORDSON CORPORATION | ||||||||||||||||||
| Period Ending January 31, 2010 | FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| (Unaudited) | (Dollars in thousands) | ||||||||||||||||||
| First Quarter | % Growth over 2009 | ||||||||||||||||||
| SALES BY BUSINESS SEGMENT | 2010 | 2009 | Volume | Currency | Total | ||||||||||||||
| Adhesive dispensing systems | $ | 117,013 | $ | 104,321 | 4.8 | % | 7.4 | % | 12.2 | % | |||||||||
| Advanced technology systems | 76,924 | 56,541 | 32.1 | % | 3.9 | % | 36.0 | % | |||||||||||
Industrial coating systems | 26,652 | 25,746 | -0.7 | % | 4.2 | % | 3.5 | % | |||||||||||
| Total sales by business segment | $ | 220,589 | $ | 186,608 | 12.3 | % | 5.9 | % | 18.2 | % | |||||||||
| First Quarter | |||||||||||||||||||
| OPERATING PROFIT BY BUSINESS SEGMENT | 2010 | 2009 | |||||||||||||||||
| Adhesive dispensing systems | $ | 32,287 | $ | 26,152 | |||||||||||||||
| Advanced technology systems | 13,458 | 1,322 | |||||||||||||||||
Industrial coating systems | (375 | ) | (2,196 | ) | |||||||||||||||
| Corporate | (9,100 | ) | (12,203 | ) | |||||||||||||||
| Total operating profit by business segment | $ | 36,270 | $ | 13,075 | |||||||||||||||
| First Quarter | % Growth over 2009 | ||||||||||||||||||
| SALES BY GEOGRAPHIC REGION | 2010 | 2009 | Volume | Currency | Total | ||||||||||||||
| United States | $ | 59,244 | $ | 56,375 | 5.1 | % | - | 5.1 | % | ||||||||||
| Americas | 16,544 | 12,536 | 22.1 | % | 9.9 | % | 32.0 | % | |||||||||||
| Europe | 79,017 | 69,661 | 2.9 | % | 10.5 | % | 13.4 | % | |||||||||||
| Japan | 17,810 | 18,965 | -8.8 | % | 2.7 | % | -6.1 | % | |||||||||||
| Asia Pacific | 47,974 | 29,071 | 58.1 | % | 6.9 | % | 65.0 | % | |||||||||||
| Total Sales by Geographic Region | $ | 220,589 | $ | 186,608 | 12.3 | % | 5.9 | % | 18.2 | % | |||||||||
| First Quarter | |||||||||||||||||||
| SELECTED SUPPLEMENTAL INFORMATION | 2010 | 2009 | |||||||||||||||||
| Depreciation and amortization | $ | 7,705 | $ | 7,906 | |||||||||||||||
| Capital expenditures | $ | 1,716 | $ | 5,629 | |||||||||||||||
| Dividends paid | $ | 6,398 | $ | 6,112 | |||||||||||||||
NORDSON CORPORATION | |||||||||||||||||||
| ORDER RATES FOR 12-WEEK PERIOD ENDING FEBRUARY 14, 2010 | |||||||||||||||||||
| CHANGE FROM PRIOR YEAR | |||||||||||||||||||
BUSINESS SEGMENT | % CHANGE | GEOGRAPHY | % CHANGE | ||||||||||||||||
| Adhesive dispensing systems | 14 | % | United States | 16 | % | ||||||||||||||
| Advanced technology systems | 78 | % | Americas | 29 | % | ||||||||||||||
Industrial coating systems | 29 | % | Europe | 6 | % | ||||||||||||||
| Japan | 9 | % | |||||||||||||||||
| Total | 33 | % | Asia Pacific | 170 | % | ||||||||||||||
| Total | 33 | % | |||||||||||||||||
| Note: Numbers in this table are unaudited and exclude the effects of currency movements. | |||||||||||||||||||
CONTACT:
Nordson Corporation
James R. Jaye, 440-414-5639
Director, Communications & Investor Relations
Jim.Jaye@nordson.com