[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
NORDSON CORPORATION ANNOUNCES THIRD QUARTER RESULTS
o Strong earnings exceeds consensus and the range of guidance
o Recent acquisitions lead to worldwide 14 percent sales growth to a
record $257.7 million
o Volume up in all segments and geographic markets
WESTLAKE, Ohio - August 23, 2007 - Nordson Corporation (Nasdaq:NDSN) today
announced sales, earnings and earnings per share for the third quarter, which
ended July 31, 2007. Worldwide sales for the quarter reached a record $257.7
million, a 14 percent increase over the same period last year. The growth
consisted of 9 percent from acquisitions, 3 percent from core volume growth, and
2 percent from favorable currency effects.
Third quarter sales volume was up 26 percent in the Advanced Technology Systems
segment. In addition, the Industrial Coating and Automotive Systems segment
achieved a third quarter sales volume increase of 14 percent. This newly named
segment combines the segment formerly known as Finishing and Coating Systems
with the Automotive unit of the Adhesive Dispensing Systems segment. The
Adhesive Dispensing Systems segment (now excluding Automotive) showed a volume
increase of 4 percent. All prior year results are adjusted to reflect the new
segments.
Third quarter sales volume increased in all geographies, with volume increases
of 32 percent in the Americas, 15 percent in Japan, 11 percent in the United
States, 10 percent in the Asia Pacific region and 9 percent in Europe.
--more--
Nordson Corporation - August 23, 2007, page 2
Backlog at the end of the third quarter was approximately $115 million, up more
than $22 million from the same period last year.
Fully diluted earnings per share for the third quarter were $.72. This compares
to fully diluted earnings per share from continuing operations of $.77 last year
and $.72 including discontinued operations. Prior year results include a
nonrecurring tax refund that contributed $.09 to earnings per share. Without
last year's tax refund, current year earnings per share are up 6 percent over
prior year results from continuing operations and up 14 percent over prior year
results including discontinued operations.
For the first nine months of fiscal 2007, sales were a record $702.9 million, an
8 percent increase over the same period of 2006. Sales growth consisted of 6
percent from acquisitions and 3 percent from favorable currency effects; core
volume was down 1 percent. Year-to-date earnings per share on a diluted basis
were $1.79, compared with $1.99 from continuing operations and $1.84 including
discontinued operations during the same period last year.
"Nordson had a strong third quarter exceeding the consensus of investment
analysts and our own range of earnings guidance" said Edward Campbell, chairman
and chief executive officer. "I am pleased with the fact that the 14-percent
increase in sales is coming from solid growth across all of our segments and
geographies. Furthermore, the strength in the quarter's earnings was masked by a
$.05 per share current period charge from acquisition accounting related to
acquired inventory. Also, the restructuring of our Industrial Coating and
Automotive segment continues to yield benefits, with operating profit margins
for the quarter of 13 percent, as compared to 9 percent in last year's third
quarter. Looking forward, lead by recent acquisitions, our order rates continue
to reflect strong global demand, with orders in the 12-week period ending August
19 increasing by 12 percent in constant currency over the prior year," Campbell
said.
"Continuing Nordson's pursuit of growth markets, we are very pleased to announce
today, in a separate, release our acquisition of TAH Industries. TAH's
capabilities align well with our strategic plans for the EFD business," Campbell
added.
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Nordson Corporation - August 23, 2007, page 3
Nordson will broadcast its third quarter conference call on the investor
relations page of its Web site, www.nordson.com, on Friday, August 24, 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.
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 more
than 3,900 employees worldwide, and direct operations and sales support offices
in 30 countries.
# # #
Contact: Shelly Peet, Vice President, Chief Information Officer
Phone: (440) 414-5604
E-mail: shelly.peet@nordson.com
THIRD QUARTER PERIOD NORDSON CORPORATION
Period Ending July 31, 2007 -------------------
(Unaudited) FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)
CONSOLIDATED STATEMENT OF INCOME
Third Quarter Year-to-Date
2007 2006 2007 2006
----------- ----------- ----------- ----------
Net sales $ 257,713 $ 225,518 $ 702,881 $ 650,709
Cost of sales 113,005 97,226 308,638 277,712
Selling & administrative expenses 103,729 91,649 290,621 266,808
---------- ----------- ---------- -----------
Operating profit 40,979 36,643 103,622 106,189
Interest expense - net (5,579) (1,788) (14,396) (8,128)
Other income (expense) - net 531 273 2,241 (415)
----------- ----------- ----------- ----------
Income before income taxes 35,931 35,128 91,467 97,646
Income taxes 11,410 8,538 30,409 29,457
----------- ----------- ----------- ----------
Income from continuing operations 24,521 26,590 61,058 68,189
Loss from discontinued operations, net of tax -- (1,776) -- (5,377)
----------- ----------- ----------- ----------
Net income $ 24,521 $ 24,814 $ 61,058 $ 62,812
=========== =========== =========== ==========
Continuing operations return on sales 10% 12% 9% 10%
Continuing operations return on average shareholders'
equity 20% 27% 18% 25%
- --------------------------------------------------------------------------------------------------------
Average common shares outstanding (000's) 33,611 33,597 33,521 33,337
Average common shares and
common share equivalents (000's) 34,215 34,460 34,159 34,215
Per share:
Basic earnings from continuing operations $ .73 $ .79 $ 1.82 $ 2.04
Basic earnings from discontinued operations -- (.05) -- (.16)
----------- ----------- ----------- ----------
Total $ .73 $ .74 $ 1.82 $ 1.88
Diluted earnings from continuing operations $ .72 $ .77 $ 1.79 $ 1.99
Diluted earnings from discontinued operations -- (.05) -- (.15)
----------- ----------- ----------- ----------
Total $ .72 $ .72 $ 1.79 $ 1.84
Dividends paid $ .175 $ .17 $ .525 $ .50
CONSOLIDATED BALANCE SHEET
- --------------------------
July 31 October 31
2007 2006
---------- ----------
Cash and marketable securities $ 30,930 $ 48,868
Receivables 198,028 190,459
Inventories 116,404 83,688
Other current assets 31,429 24,289
---------- ----------
Total current assets 376,791 347,304
Property, plant & equipment - net 119,352 105,415
Other assets 643,520 370,171
---------- ----------
$1,139,663 $ 822,890
========== ============
Notes payable and debt due within one year $ 309,730 $ 70,188
Accounts payable and accrued liabilities 171,907 171,137
---------- ------------
Total current liabilities 481,637 241,325
Long-term debt 22,840 47,130
Other liabilities 133,187 103,907
Total shareholders' equity 501,999 430,528
---------- ------------
$1,139,663 $ 822,890
========== ============
- --------------------------------------------------------------------------------
Other information:
Employees 3,922 3,645
Common shares outstanding (000's) 33,760 33,411
THIRD QUARTER PERIOD NORDSON CORPORATION
Period Ending July 31, 2007 -------------------
(Unaudited) FINANCIAL HIGHLIGHTS
(Dollars in thousands)
Third Quarter % Growth over 2006
SALES BY BUSINESS SEGMENT 2007 2006 Volume Currency Total
- ----------------------------------------- --------------- ------------ ---------- ------------- ---------
Adhesive dispensing systems $ 127,754 $ 119,412 3.5% 3.5% 7.0%
Industrial coating & automotive systems 49,857 42,986 13.9% 2.1% 16.0%
Advanced technology systems 80,102 63,120 25.8% 1.1% 26.9%
------------ ------------
Total sales by business segment $ 257,713 $ 225,518 11.8% 2.5% 14.3%
============= ============ ========== ============= =========
Third Quarter
OPERATING PROFIT BY BUSINESS SEGMENT 2007 2006
- ------------------------------------ ------------ ------------
Adhesive dispensing systems $ 29,751 $ 26,071
Industrial Coating & Automotive Systems 6,440 3,771
Advanced technology systems 11,315 14,944
Corporate (6,527) (8,143)
------------ ------------
Total operating profit by business segment $ 40,979 $ 36,643
============ ============
Third Quarter % Growth over 2006
SALES BY GEOGRAPHIC REGION 2007 2006 Volume Currency Total
- ----------------------------------------- ------------ ------------ ---------- ------------- ---------
United States $ 80,935 $ 73,026 10.8% -- 10.8%
Americas 21,352 15,756 32.1% 3.4% 35.5%
Europe 92,462 80,329 8.6% 6.5% 15.1%
Japan 22,069 20,050 15.2% -5.1% 10.1%
Asia Pacific 40,895 36,357 9.9% 2.6% 12.5%
------------ ------------
Total Sales by Geographic Region $ 257,713 $ 225,518 11.8% 2.5% 14.3%
============ ============ ========== ============= =========
Third Quarter
SELECTED SUPPLEMENTAL INFORMATION 2007 2006
- --------------------------------- ------------ ------------
Depreciation and amortization $ 7,597 $ 5,674
Capital expenditures $ 6,470 $ 2,997
Dividends paid $ 5,876 $ 5,720
Year-to-Date % Growth over 2006
SALES BY BUSINESS SEGMENT 2007 2006 Volume Currency Total
- ----------------------------------------- ---------- ------------ ----------- ------------- --------
Adhesive dispensing systems $ 361,449 $ 350,787 -1.1% 4.1% 3.0%
Industrial coating & automotive systems 127,443 122,677 1.6% 2.3% 3.9%
Advanced technology systems 213,989 177,245 19.3% 1.4% 20.7%
------------ ------------
Total sales by business segment $ 702,881 $ 650,709 5.0% 3.0% 8.0%
============ ============ ========== ============== ========
Year-to-Date
OPERATING PROFIT BY BUSINESS SEGMENT 2007 2006
- ------------------------------------ ------------ ------------
Adhesive dispensing systems $ 82,498 $ 79,112
Industrial Coating & Automotive Systems 10,465 3,142
Advanced technology systems 27,011 43,337
Corporate (16,352) (19,402)
------------ ------------
Total operating profit by business segment $ 103,622 $ 106,189
============ ============
Year-to-Date % Growth over 2006
SALES BY GEOGRAPHIC REGION 2007 2006 Volume Currency Total
- ----------------------------------------- ------------ ------------ ----------- ------------- --------
United States $ 217,377 $ 213,090 2.0% -- 2.0%
Americas 52,967 49,260 6.6% 0.9% 7.5%
Europe 257,943 230,258 4.0% 8.0% 12.0%
Japan 65,147 60,152 10.6% -2.3% 8.3%
Asia Pacific 109,447 97,949 9.4% 2.3% 11.7%
------------ ------------
Total Sales by Geographic Region $ 702,881 $ 650,709 5.0% 3.0% 8.0%
============ ============ =========== ============= ========
- -----------------------------------------------------------------------------------------------------------------------------------
Year-to-Date
SELECTED SUPPLEMENTAL INFORMATION 2007 2006
- --------------------------------- ------------ ------------
Depreciation and amortization $ 20,326 $ 16,872
Capital expenditures $ 25,689 $ 10,600
Dividends paid $ 17,593 $ 16,683