[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
Nordson Corporation Reports Record First Quarter Sales, Operating Profit and
Earnings Per Share
o Sales Grow 20 Percent to $245 Million
o Operating Profit Increases 29 Percent to $36 Million
o Diluted Earnings per Share Increase 35 Percent to $0.62
WESTLAKE, Ohio - February 21, 2008 - Nordson Corporation (Nasdaq: NDSN) today
reported record first quarter sales, operating profit and diluted earnings per
share. For the quarter ending January 31, 2008, sales reached a record $245
million, a 20 percent increase over sales in the same period a year ago. Volume
increased 15 percent with the remainder coming from the favorable effects of
currency translation. Operating profit for the quarter improved to a record $36
million, a 29 percent increase over the same period a year ago. First quarter
diluted earnings per share were a record $0.62, an increase of 35 percent over
the same period a year ago.
"Nordson delivered another excellent quarter as the momentum with which we ended
fiscal 2007 continued into the new year," said Chairman, President and Chief
Executive Officer Edward P. Campbell. "Demand for Nordson products and services
grew in all segments and each geographic region."
-continued-
Segment & Regional Results
All segments contributed solid revenue growth in the quarter over the previous
year. Revenue increased 41 percent in the Advanced Technology segment, 13
percent in the Adhesive Dispensing segment, and 8 percent in the Industrial
Coating and Automotive segment.
"We are pleased with the excellent operating performance of the Adhesive
Dispensing segment in the quarter. With orders growing faster than sales, the
segment is also well positioned for continued strength in future quarters," said
Campbell. "Sales growth in the Advanced Technology segment was driven by both
incremental sales from recent acquisitions and expansion in our core product
lines, yielding growth in operating profit of 26 percent in the quarter. In
addition, the Industrial Coating and Automotive segment continues to deliver on
its restructuring, evidenced by the approximately four percentage point
improvement in operating margin."
On a geographic basis, first quarter sales revenue increased 44 percent in Asia
Pacific, 19 percent in Europe, 18 percent in Japan, 14 percent in the United
States and 8 percent in the Americas.
"The global nature of our enterprise continued to serve us well during the
quarter, as we realized solid revenue increases in all of our geographic
regions," said Campbell. "Nordson especially benefited this quarter from
powerful growth in Asia Pacific, where our abilities to meet the specific
engineering needs of customers and provide them with local support continued to
make us the region's supplier of choice."
Order Rates and Backlog
Order rates for the 12 week period ending February 17, 2008, measured in
constant currency, increased 8 percent over the same period a year ago. Order
rates by segment and geography are provided in the accompanying financial
tables, with pro-forma growth in order rates calculated as though fiscal year
2007 acquisitions were owned in both years.
-continued-
Backlog at the end of the first quarter was approximately $131 million, an
increase of 24 percent compared with $106 million for the same period a year
ago. Backlog increased by approximately $32 million or 32 percent during the
quarter. Backlog amounts are calculated at January 31, 2008 exchange rates.
Outlook
For the second quarter of fiscal year 2008, sales are expected to reach a record
level, with growth of 14 to 18 percent over the same period a year ago. Diluted
earnings per share are also expected to reach a record level, with guidance in
the range of $.77 to $.86. The midpoint of this guidance represents a 34 percent
increase over diluted earnings per share of $.61 in the prior year.
"With a strong first quarter behind us and a positive outlook for the second
quarter, 2008 remains on pace to be another record year for Nordson," said
Campbell. "We continue to see opportunity in a broadening group of markets and
customers worldwide, as our recent acquisitions continue to strengthen our
portfolio of precision solutions. In addition, our global diversification also
gives us the confidence to weather any regional economic fluctuations should
they occur."
Nordson will broadcast its first-quarter conference call on the investor
relations page of its Web site, www.nordson.com, on Friday, February 22, 2008 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 Barbara Price, Manager,
Shareholder Relations, at (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 filing with the Securities and Exchange Commission that could cause
actual results to differ.
-continued-
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 for curing and surface
treatment processes. Headquartered in Westlake, Ohio, Nordson has more than
4,100 employees worldwide, and direct operations and sales support offices in 30
countries.
###
Investor Contact:
Barbara T. Price, Manager, Shareholder Relations
(440) 414-5344 bprice@nordson.com
Media Contact:
James R. Jaye, Director, Corporate Communications
(440) 414-5639 jjaye@nordson.com
A summary of sales, income, earnings and order rates is presented in the
attached tables.
NORDSON CORPORATION
---------------------
FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share)
FIRST QUARTER PERIOD
Period Ending January 31, 2008
(Unaudited) amounts)
CONSOLIDATED STATEMENT OF INCOME
First Quarter
2008 2007
---------- ----------
Net sales $ 244,689 $ 203,875
Cost of sales 104,830 86,214
Selling & administrative expenses 103,460 89,395
---------- ----------
Operating profit 36,399 28,266
Interest expense - net (5,130) (3,814)
Other income (expense) - net 1,213 (1,069)
---------- ----------
Income before income taxes 32,482 23,383
Income taxes 11,143 7,826
---------- ----------
Net Income 21,339 15,557
========== ==========
Return on sales 9% 8%
Return on average shareholders' equity 16% 14%
- --------------------------------------------------------------------------------
Average common shares outstanding (000's) 33,617 33,383
Average common shares and
common share equivalents (000's) 34,189 34,117
Per share:
Basic earnings $ .63 $ .47
Diluted earnings $ .62 $ .46
Dividends paid $ .1825 $ .175
- --------------------------------------------------------------------------------
FIRST QUARTER PERIOD
Period Ending January 31, 2008
(Unaudited) amounts)
CONSOLIDATED BALANCE SHEET
- --------------------------
January 31 October 31
2008 2007
---------- ----------
Cash and marketable securities $ 40,991 $ 31,145
Receivables 208,728 229,993
Inventories 135,546 119,650
Other current assets 31,909 29,136
---------- ----------
Total current assets
417,174 409,924
Property, plant & equipment - net 132,156 132,917
Other assets 664,764 668,999
---------- ----------
$1,214,094 $1,211,840
========== ==========
Notes payable and debt due within one year $ 336,528 $ 324,099
Accounts payable and accrued liabilities 149,642 185,815
---------- ----------
Total current liabilities
486,170 509,914
Long-term debt 22,840 22,840
Other liabilities 155,928 147,969
Total shareholders' equity 549,156 531,117
---------- ----------
$1,214,094 $1,211,840
========== ==========
Other information:
Employees 4,119 4,089
Common shares outstanding (000's) 33,646 33,710
NORDSON CORPORATION
FIRST QUARTER PERIOD -------------------
Period Ending January 31, 2008 FINANCIAL HIGHLIGHTS
(Unaudited) (Dollars in thousands)
First Quarter % Growth over 2007
SALES BY BUSINESS SEGMENT 2008 2007 Volume Currency Total
- ------------------------- ---------- ---------- ---------- ---------- ----------
Adhesive dispensing systems $ 123,865 $ 110,034 5.2% 7.4% 12.6%
Advanced technology systems 83,894 59,681 38.8% 1.8% 40.6%
Industrial coating & automotive systems 36,930 34,160 3.4% 4.7% 8.1%
---------- ---------- ---------- ---------- ----------
Total sales by business segment $ 244,689 $ 203,875 14.7% 5.3% 20.0%
========== ========== ========== ========== ==========
First Quarter
OPERATING PROFIT BY BUSINESS SEGMENT 2008 2007
- ------------------------------------ ---------- ----------
Adhesive dispensing systems $ 28,138 $ 23,065
Advanced technology systems 10,336 8,235
Industrial coating & automotive systems 850 (489)
Corporate (2,925) (2,545)
---------- ----------
Total operating profit by business
segment $ 36,399 $ 28,266
========== ==========
First Quarter % Growth over 2007
SALES BY GEOGRAPHIC REGION 2008 2007 Volume Currency Total
- -------------------------- ---------- ---------- ---------- ---------- ----------
United States $ 72,991 $ 64,291 13.5% -- 13.5%
Americas 15,978 14,796 3.1% 4.9% 8.0%
Europe 91,116 76,842 8.5% 10.1% 18.6%
Japan 20,240 17,103 11.7% 6.6% 18.3%
Asia Pacific 44,364 30,843 39.7% 4.1% 43.8%
---------- ---------- ---------- ---------- ----------
Total Sales by Geographic Region $ 244,689 $ 203,875 14.7% 5.3% 20.0%
========== ========== ========== ========== ==========
First Quarter
SELECTED SUPPLEMENTAL INFORMATION 2008 2007
- --------------------------------- ---------- ----------
Depreciation and amortization $ 7,733 $ 6,093
Capital expenditures $ 4,364 $ 8,654
Dividends paid $ 6,133 $ 5,839
NORDSON CORPORATION
ORDER RATES FOR 12-WEEK PERIOD ENDING FEBRUARY 17, 2008
CHANGE FROM PRIOR YEAR
BUSINESS SEGMENT % CHANGE GEOGRAPHY % CHANGE
- ---------------- -------- --------- --------
Adhesive dispensing systems 12% United States 5%
Advanced technology systems 10% Americas -7%
Industrial coating & automotive systems -6% Europe 3%
Japan 5%
Total 8% Asia Pacific 35%
Total 8%
Notes:
1. Numbers in this table are unaudited and exclude the effects of currency
movements.
2. Pro-forma growth in order rates were calculated as though fiscal 2007
acquisitions were owned in both years.