Exhibit 99
Nordson's Earnings Rebound in Fourth-Quarter, Fiscal Year;
Strong Recovery in Orders Continues
WESTLAKE, Ohio, Dec. 11 /PRNewswire-FirstCall/ -- Nordson Corporation
(Nasdaq: NDSN) today reported fourth-quarter fiscal 2003 sales of $189 million
compared with $179 million for the same period of the prior year. Sales
volume was up nearly 1 percent, with favorable currency effects contributing
an additional 5 percent to the overall sales gain.
On a diluted basis, fourth-quarter earnings per share were $.39, a
44 percent increase over the prior year before the effect of an inventory
write-down in 2002. Diluted earnings per share were $.04 in the prior-year
quarter after the inventory write-down of $11 million, or $.23 per share.
Fourth-quarter sales volume for the Advanced Technology segment was up
11 percent while volume for the Adhesive Dispensing business was up nominally.
Finishing segment sales volume was down 8 percent. On a geographic basis,
volume in Japan and the Pacific South region was up 21 percent and 36 percent,
respectively. North America experienced a 9 percent volume decline while
volume in Europe was down 4 percent from last year.
Annual sales for the fiscal year, which ended on November 2, were $667
million, up 3 percent from $648 million in fiscal 2002. A sales volume
decline of 3 percent was more than offset by a 6 percent increase in sales
tied to favorable currency effects. On a diluted basis, earnings per share
for the year were $1.04 compared with $.66 in 2002. As noted above, last
year's results included the effect of an inventory write-down of $11 million,
or $.23 per share.
Backlog at year-end amounted to $61.2 million compared with $45.4 million
at the end of fiscal 2002.
"I am pleased by Nordson's strong performance during the fourth quarter.
Orders and backlog improved at double-digit rates from the prior year, and
sales volumes grew, reversing the downward trend seen in the first nine
months," stated Edward P. Campbell, president and chief executive officer.
"Nordson's new product and business development programs, aided by a rebound
in the global manufacturing sector and the weakening dollar, drove sales and
earnings growth in the quarter. Moreover, the improvement in order rates
during the fourth quarter gives us optimism that the trend in economic
recovery will continue into 2004."
"Our operational focus on lean-enterprise management coupled with strong
earnings led to a healthy cash flow which was used to reduce debt. We are now
in a position to selectively pursue acquisitions with above-average earnings
potential," Campbell added.
As previously announced, Nordson will pay a first-quarter 2004 cash
dividend of $0.155 per common share on January 6, 2004, to shareholders of
record on December 15, 2003. Nordson raised its dividend in fiscal 2003 and
is one of only 21 U.S. companies that have increased their annual dividend for
40 consecutive years.
Nordson will broadcast its fourth-quarter conference call on the investor
relations page of the company's Web site, www.nordson.com , on Thursday,
December 11, at 2:00 p.m. EST. For those 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, at
(440) 414-5344.
Except for the 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 materially.
Nordson Corporation is the world's leading producer of precision
dispensing equipment. Nordson systems apply adhesives, sealants and coatings
to a broad range of consumer and industrial products during manufacturing
operations, helping customers meet quality, productivity and environmental
targets. The company also manufactures technology-based systems for curing
and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has
direct operations in 30 countries and 3,500 employees worldwide.
A summary of sales, income and earnings is presented in the attached
schedule.
NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per share amounts)
FOURTH QUARTER PERIOD
Period Ending November 2, 2003
(Unaudited)
CONSOLIDATED STATEMENT OF INCOME
Fourth Quarter Year-to-Date
2003 2002 2003 2002
Net sales $189,073 $179,036 $667,347 $647,756
Cost of sales(A) 87,169 95,232 301,566 310,542
Selling & administrative expenses 77,258 76,101 295,157 281,696
Severance and restructuring costs 403 949 2,028 2,499
Operating profit 24,243 6,754 68,596 53,019
Interest expense - net (4,102) (5,148) (17,174) (20,789)
Other income - net (237) 493 1,055 714
Income before income taxes 19,904 2,099 52,477 32,944
Income taxes 6,568 693 17,317 10,872
Net income $13,336 $1,406 $35,160 $22,072
Return on sales 7% 1% 5% 3%
Return on average shareholders'
equity 18% 2% 13% 8%
(A) Includes $11,388 of inventory write-downs in the fourth quarter of
2002 and $191 of restructuring charges in the second quarter of 2002.
Average common shares outstanding
(000's) 33,858 33,556 33,703 33,383
Average common shares and common
share equivalents (000's) 34,170 33,663 33,899 33,690
Per share:
Basic earnings $.39 $.04 $1.04 $.66
Diluted earnings $.39 $.04 $1.04 $.66
Dividends paid $.155 $.15 $.605 $.57
CONSOLIDATED BALANCE SHEET
November 2, November 3,
2003 2002
Cash and marketable securities $6,972 $5,897
Receivables 151,740 135,662
Inventories 78,557 87,100
Prepaid expenses 40,101 45,914
Total current assets 277,370 274,573
Property, plant & equipment - net 115,255 118,773
Other assets 374,181 371,126
$766,806 $764,472
Notes payable and debt due within one year $67,324 $117,234
Accounts payable and accrued liabilities 144,338 135,413
Total current liabilities 211,662 252,647
Long-term debt 172,619 171,314
Other liabilities 82,416 71,621
Total shareholders' equity 300,109 268,890
$766,806 $764,472
Other information:
Employees 3,483 3,572
Common shares outstanding (000's) 34,035 33,614
NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)
FOURTH QUARTER PERIOD
Period Ending November 2, 2003
(Unaudited)
Fourth Quarter % Growth over 2002
SALES BY BUSINESS SEGMENT 2003 2002 Volume Currency Total
Adhesive dispensing &
nonwoven fiber systems $122,753 $115,438 0.4% 5.9% 6.3%
Coating & finishing systems 29,896 31,123 -8.4% 4.5% -3.9%
Advanced technology systems 36,424 32,475 10.8% 1.4% 12.2%
Total sales by business segment $189,073 $179,036 0.8% 4.8% 5.6%
OPERATING PROFIT BY BUSINESS Fourth Quarter
SEGMENT 2003 2002
Adhesive dispensing & nonwoven
fiber systems $27,849 $24,687
Coating & finishing systems 2,749 1,226
Advanced technology systems 5,461 1,105
Corporate (11,816) (20,264)
Total operating profit by
business segment $24,243 $6,754
Fourth Quarter % Growth over 2002
SALES BY GEOGRAPHIC REGION 2003 2002 Volume Currency Total
North America $72,121 $78,097 -8.5% 0.8% -7.7%
Europe 68,740 64,008 -4.0% 11.4% 7.4%
Japan 21,498 17,522 20.6% 2.1% 22.7%
Pacific South 26,714 19,409 35.5% 2.1% 37.6%
Total Sales by Geographic Region $189,073 $179,036 0.8% 4.8% 5.6%
Fourth Quarter
SELECTED SUPPLEMENTAL INFORMATION 2003 2002
Depreciation and amortization $7,606 $8,627
Capital expenditures $3,078 $1,272
Dividends paid $5,242 $5,031
NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)
FOURTH QUARTER PERIOD
Period Ending November 2, 2003
(Unaudited)
Year-to-Date % Growth over 2002
SALES BY BUSINESS SEGMENT 2003 2002 Volume Currency Total
Adhesive dispensing &
nonwoven fiber systems $426,204 $413,082 -3.9% 7.1% 3.2%
Coating & finishing systems 112,722 114,196 -6.3% 5.0% -1.3%
Advanced technology systems 128,421 120,478 4.4% 2.2% 6.6%
Total sales by business segment $667,347 $647,756 -2.8% 5.8% 3.0%
OPERATING PROFIT BY BUSINESS Year-to-Date
SEGMENT 2003 2002
Adhesive dispensing & nonwoven
fiber systems $82,911 $84,916
Coating & finishing systems 3,950 414
Advanced technology systems 16,622 8,324
Corporate (34,887) (40,635)
Total operating profit by
business segment $68,596 $53,019
Year-to-Date % Growth over 2002
SALES BY GEOGRAPHIC REGION 2003 2002 Volume Currency Total
North America $265,094 $296,466 -11.1% 0.5% -10.6%
Europe 244,709 219,846 -3.5% 14.8% 11.3%
Japan 73,333 59,993 17.0% 5.2% 22.2%
Pacific South 84,211 71,451 17.3% 0.6% 17.9%
Total Sales by Geographic
Region $667,347 $647,756 -2.8% 5.8% 3.0%
Year-to-Date
SELECTED SUPPLEMENTAL INFORMATION 2003 2002
Depreciation and amortization $29,241 $29,487
Capital expenditures $7,563 $9,284
Dividends paid $20,377 $19,011
SOURCE Nordson Corporation
-0- 12/11/2003
/CONTACT: Bruce Waffen of Nordson Corporation, +1-440-414-5610/
/Web site: http://www.nordson.com /
(NDSN)
CO: Nordson Corporation
ST: Ohio
IN: CST MAC
SU: ERN CCA MAV DIV