FOR IMMEDIATE RELEASE
NORDSON CORPORATION ANNOUNCES SECOND QUARTER RESULTS
o Worldwide Sales Grow 6 Percent to Record $241.3 Million
o Volume Up 23 Percent in Japan and 5 Percent in Asia Pacific
WESTLAKE, Ohio - May 24, 2007 - Nordson Corporation (Nasdaq:NDSN) today
announced sales, earnings and earnings per share for the second quarter, which
ended April 30, 2007. Worldwide sales for the quarter reached a record $241.3
million, a 6 percent increase over the same period last year. The growth
consisted of 7 percent from acquisitions and 3 percent from favorable currency
effects; organic volume was down 4 percent.
On a diluted basis, earnings per share for the quarter were $.61, as compared
with $.70 from continuing operations and $.64 including discontinued operations
during the same period last year.
Second quarter sales volume was up 17 percent in the Advanced Technology Systems
segment; excluding recent acquisitions, volume declined in the segment. In the
Adhesive Dispensing Systems and Finishing and Coating Systems segments, volume
was down 4 percent and 1 percent, respectively.
On a geographic basis, second quarter sales volume was up 23 percent in Japan
and 5 percent in the Asia Pacific region, influenced by the impact of
acquisitions. Volume grew 2 percent in Europe and was down 5 percent in the
Americas and 2 percent in the United States.
-more-
Nordson Corporation - May 24, 2007, page 2
Backlog, excluding acquisitions, at the end of the second quarter was
approximately $108 million, up more than $14 million from the same period last
year as well as from the end of the 2007 first quarter, in each case calculated
at constant exchange rates.
For the first half of fiscal 2007, sales were a record $445.2 million, a 5
percent increase over the first half of 2006. Sales growth in the first half
consisted of 5 percent from acquisitions and 3 percent from favorable currency
effects; organic volume was down 3 percent. Year-to-date earnings per share on a
diluted basis were $1.07, compared with $1.22 from continuing operations and
$1.11 including discontinued operations during the same period last year.
"Although core volume in the second quarter was down, I am encouraged by the
strong order rates we have been seeing recently in all of our segments," said
Edward Campbell, chairman and chief executive officer. "In the 12-week period
ending May 11, order volume is up 12 percent over the prior year, including the
impact of acquisitions in the current year, and up 6 percent before the effect
of acquisitions. In addition, I am pleased with the improving performance of the
Finishing and Coating Systems segment, where operating profit margins for the
quarter were 10 percent, as compared to 2 percent in last year's second
quarter," Campbell said.
Nordson will broadcast its second quarter conference call on the investor
relations page of its Web site, www.nordson.com, on Friday, May 25, 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.
--more--
Nordson Corporation - May 24, 2007, page 2
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 nearly
3,900 employees worldwide, and direct operations and sales support offices in 30
countries.
# # #
Contact: Derrick Johnson, Director, Corporate Communications
Phone: (440) 414-5639
E-mail: djohnson@nordson.com
SECOND QUARTER PERIOD NORDSON CORPORATION
Period Ending April 30, 2007 -------------------
(Unaudited) FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)
Second Quarter Year-to-Date
CONSOLIDATED STATEMENT OF INCOME 2007 2006 2007 2006
- -------------------------------- --------- --------- --------- ---------
Net sales $ 241,293 $ 227,840 $ 445,168 $ 425,191
Cost of sales 109,419 97,150 195,633 180,486
Selling & administrative expenses 97,497 91,536 186,892 175,159
--------- --------- --------- ---------
Operating profit 34,377 39,154 62,643 69,546
Interest expense - net (5,003) (3,033) (8,817) (6,340)
Other income (expense) - net 2,779 17 1,710 (688)
--------- --------- --------- ---------
Income before income taxes 32,153 36,138 55,536 62,518
Income taxes 11,173 12,092 18,999 20,919
--------- --------- --------- ---------
Income from continuing operations 20,980 24,046 36,537 41,599
Loss from discontinued operations, net of tax -- (2,115) -- (3,601)
--------- --------- --------- ---------
Net income $ 20,980 $ 21,931 $ 36,537 $ 37,998
========= ========= ========= =========
Continuing operations return on sales 9% 11% 8% 10%
Continuing operations return on average shareholders' equity 18% 26% 16% 23%
Average common shares outstanding (000's) 33,572 33,437 33,475 33,215
Average common shares and
common share equivalents (000's) 34,146 34,358 34,130 34,098
Per share:
Basic earnings from continuing operations $ .62 $ .72 $ 1.09 $ 1.25
Basic earnings from discontinued operations -- (.06) -- (.11)
--------- --------- --------- ---------
Total $ .62 $ .66 $ 1.09 $ 1.14
Diluted earnings from continuing operations $ .61 $ .70 $ 1.07 $ 1.22
Diluted earnings from discontinued operations -- (.06) -- (.11)
--------- --------- --------- ---------
Total $ .61 $ .64 $ 1.07 $ 1.11
Dividends paid $ .175 $ .165 $ .35 $ .33
SECOND QUARTER PERIOD NORDSON CORPORATION
Period Ending April 30, 2007 -------------------
(Unaudited) FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)
CONSOLIDATED BALANCE SHEET
- --------------------------
April 30 October 31
2007 2006
---------- ----------
Cash and marketable securities $ 28,067 $ 48,868
Receivables 206,389 190,459
Inventories 112,723 83,688
Other current assets 28,713 24,289
---------- ----------
Total current assets 375,892 347,304
Property, plant & equipment - net 117,424 105,415
Other assets 633,710 370,171
---------- ----------
$1,127,026 $ 822,890
========== ==========
Notes payable and debt due within one year $ 311,019 $ 70,188
Accounts payable and accrued liabilities 166,880 171,137
---------- ----------
Total current liabilities 477,899 241,325
Long-term debt 47,130 47,130
Other liabilities 126,067 103,907
Total shareholders' equity 475,930 430,528
---------- ----------
$1,127,026 $ 822,890
========== ==========
Other information:
Employees 3,892 3,645
Common shares outstanding (000's) 33,678 33,411
SECOND QUARTER PERIOD NORDSON CORPORATION
Period Ending April 30, 2007 -------------------
(Unaudited) FINANCIAL HIGHLIGHTS
(Dollars in thousands)
Second Quarter % Growth over 2006
SALES BY BUSINESS SEGMENT 2007 2006 Volume Currency Total
- ------------------------- -------- -------- -------- -------- --------
Adhesive dispensing systems $130,459 $129,522 -3.5% 4.2% 0.7%
Finishing & coating systems 36,629 35,947 -1.0% 2.9% 1.9%
Advanced technology systems 74,205 62,371 17.4% 1.6% 19.0%
-------- -------- -------- -------- --------
Total sales by business segment $241,293 $227,840 2.6% 3.3% 5.9%
======== ======== ======== ======== ========
Second Quarter
OPERATING PROFIT BY BUSINESS SEGMENT 2007 2006
- ------------------------------------ -------- --------
Adhesive dispensing systems $ 30,582 $ 29,231
Finishing & coating systems 3,614 734
Advanced technology systems 7,461 17,397
Corporate (7,280) (8,208)
-------- --------
Total operating profit by business segment $ 34,377 $ 39,154
======== ========
Second Quarter % Growth over 2006
SALES BY GEOGRAPHIC REGION 2007 2006 Volume Currency Total
- -------------------------- -------- -------- -------- -------- --------
United States $ 72,151 $ 73,912 -2.4% -- -2.4%
Americas 16,819 17,792 -5.2% -0.3% -5.5%
Europe 88,639 79,724 2.2% 9.0% 11.2%
Japan 25,975 21,283 23.2% -1.2% 22.0%
Asia Pacific 37,709 35,129 5.4% 1.9% 7.3%
-------- --------
Total Sales by Geographic Region $241,293 $227,840 2.6% 3.3% 5.9%
======== ======== ======== ======== ========
Second Quarter
SELECTED SUPPLEMENTAL INFORMATION 2007 2006
- --------------------------------- -------- --------
Depreciation and amortization $ 6,636 $ 5,680
Capital expenditures $ 10,563 $ 3,063
Dividends paid $ 5,878 $ 5,508
-------- --------
SECOND QUARTER PERIOD
Period Ending April 30, 2007
(Unaudited)
Year-to-Date % Growth over 2006
SALES BY BUSINESS SEGMENT 2007 2006 Volume Currency Total
- ------------------------- -------- -------- -------- -------- --------
Adhesive dispensing systems $244,837 $242,969 -3.4% 4.2% 0.8%
Finishing & coating systems 66,445 68,097 -5.2% 2.8% -2.4%
Advanced technology systems 133,886 114,125 15.7% 1.6% 17.3%
-------- --------
Total sales by business segment $445,168 $425,191 1.4% 3.3% 4.7%
======== ======== ======== ======== ========
Year-to-Date
OPERATING PROFIT BY BUSINESS SEGMENT 2007 2006
- ------------------------------------ -------- --------
Adhesive dispensing systems $ 53,010 $ 52,656
Finishing & coating systems 3,762 (244)
Advanced technology systems 15,696 28,393
Corporate (9,825) (11,259)
-------- --------
Total operating profit by business segment $ 62,643 $ 69,546
======== ========
Year-to-Date % Growth over 2006
SALES BY GEOGRAPHIC REGION 2007 2006 Volume Currency Total
- -------------------------- -------- -------- -------- -------- --------
United States $136,442 $140,064 -2.6% -- -2.6%
Americas 31,615 33,504 -5.3% -0.3% -5.6%
Europe 165,481 149,929 1.6% 8.8% 10.4%
Japan 43,078 40,102 8.3% -0.9% 7.4%
Asia Pacific 68,552 61,592 9.2% 2.1% 11.3%
-------- --------
Total Sales by Geographic Region $445,168 $425,191 1.4% 3.3% 4.7%
======== ======== ======== ======== ========
Year-to-Date
SELECTED SUPPLEMENTAL INFORMATION 2007 2006
- --------------------------------- -------- --------
Depreciation and amortization $ 12,729 $ 11,198
Capital expenditures $ 19,219 $ 7,603
Dividends paid $ 11,717 $ 10,963
-------- --------
SOURCE Nordson Corporation
-0- 05/24/2007
/CONTACT: Derrick Johnson, Director, Corporate Communications of Nordson
Corporation, +1-440-414-5639, or djohnson@nordson.com /
/Web site: http://www.nordson.com/
-----------------------
(NDSN)