Exhibit 99.1
FOR IMMEDIATE RELEASE
NORDSON CORPORATION ANNOUNCES FIRST QUARTER EARNINGS;
EARNINGS PER SHARE INCREASE BY 21 PERCENT
o First quarter 2006 represents records for sales, earnings and earnings per
share
o Sales volume increased 24 percent in Advanced Technology Systems segment
o Asia Pacific and United States sales volumes increased 14 percent and
10 percent, respectively
WESTLAKE, Ohio - February 27, 2006 - Nordson Corporation (Nasdaq:NDSN) today
announced record sales and earnings for the first quarter, which ended January
31, 2006. On a diluted basis, earnings per share for the quarter were $.47
compared with $.39 for the same period of 2005, a 21 percent increase.
Included in first quarter operating expenses was a $982,000 charge, or $.02 per
share, related to the adoption of new accounting guidelines for the expensing of
stock options. In addition, charges related to the restructuring of the
Finishing and Coating Systems segment amounted to $1.2 million, or $.02 per
share.
Worldwide sales for the first quarter of 2006 were $197.5 million, a 4 percent
increase compared with sales of $190.2 million for the same period of 2005.
Volume gains of 7 percent were offset by unfavorable currency effects of 3
percent.
First quarter sales volume for the company's Advanced Technology Systems segment
grew by 24 percent over the prior year period while the Adhesive Dispensing and
Nonwoven Fiber Systems segment increased volume by 3 percent. Sales volume for
the Finishing and Coating Systems segment was approximately equal to one year
ago.
On a geographic basis, sales volume for the first quarter was up 10 percent in
the United States, 5 percent in the Americas and 6 percent in Europe. Volume was
up 14 percent in the Asia Pacific region and down 4 percent in Japan.
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Nordson Corporation Announces First Quarter Earnings
February 27, 2006
Page 2 of 5
Backlog at the end of the first quarter was approximately $100 million, up more
than $20 million since the beginning of the fiscal year, calculated at actual
exchange rates.
"Our Advanced Technology Systems segment continues to generate exceptional
results, with sales volume growth in the first quarter being broadly distributed
across all businesses within this segment," said Edward P. Campbell, chairman
and chief executive officer.
"We are encouraged by the improving business environment in our Adhesive
Dispensing segment. When excluding the Fiber Systems business, sales volume for
the segment was up 5 percent, which was driven by improvement in our Packaging
Systems business in the United States and Europe," Campbell said. "In addition,
higher gross margins within the Adhesive Dispensing segment contributed to
improved overall operating margins, with the operating profit rate for the
quarter reaching 14.3 percent compared to 12.5 percent a year ago."
Nordson will broadcast its first quarter conference call on the investor
relations page of its Web site, www.nordson.com, on Tuesday, February 28, 2006
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 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.
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Nordson Corporation Announces First Quarter Earnings
February 27, 2006
Page 3 of 5
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 technology-based systems for curing and surface
treatment processes. Headquartered in Westlake, Ohio, Nordson has more than
3,600 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
NORDSON CORPORATION
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FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)
FIRST QUARTER PERIOD
Period ending January 31, 2006
(Unaudited)
CONSOLIDATED STATEMENT OF INCOME
- --------------------------------
First Quarter
-------------------------
2006 2005
----------- -----------
Net sales $ 197,452 $ 190,166
Cost of sales 83,654 83,625
Selling and administrative expenses 85,601 82,791
----------- -----------
Operating profit 28,197 23,750
Interest expense - net (3,279) (2,950)
Other income - net (707) 483
----------- -----------
Income before income taxes 24,211 21,283
Income taxes 8,144 6,917
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Net income $ 16,067 $ 14,366
=========== ===========
Return on sales 8% 8%
Return on average shareholders' equity 19% 14%
Per share data
Average common shares outstanding (000's) 33,002 36,226
Average common shares and
common share equivalents (000's) 33,847 37,200
Per share:
Basic earnings $ .49 $ .40
Diluted earnings $ .47 $ .39
Dividends paid $ .165 $ .16
CONSOLIDATED BALANCE SHEET
- --------------------------
January 31, October 30,
2006 2005
----------- -----------
Cash and marketable securities $ 17,981 $ 11,484
Receivables 151,539 181,660
Inventories 92,936 81,868
Other current assets 37,865 36,704
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Total current assets 300,321 311,716
Property, plant and equipment - net 111,263 110,531
Other assets 365,397 366,279
----------- -----------
$ 776,981 $ 788,526
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Notes payable and debt due within one year $ 59,891 $ 72,079
Accounts payable and accrued liabilities 152,403 177,995
----------- -----------
Total current liabilities 212,294 250,074
Long-term debt 101,420 101,420
Other liabilities 102,039 106,120
Total shareholders' equity 361,228 330,912
----------- -----------
$ 776,981 $ 788,526
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Other information:
Employees 3,665 3,653
Common shares outstanding (000's) 33,467 32,911
NORDSON CORPORATION
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FINANCIAL HIGHLIGHTS
(Dollars in thousands)
FIRST QUARTER PERIOD
Period ending January 31, 2006
(Unaudited)
First Quarter % Growth over 2005
------------------------- ---------------------------------------
SALES BY BUSINESS SEGMENT 2006 2005 Volume Currency Total
- -------------------------------------------------- ----------- ----------- ----------- ----------- -----------
Adhesive dispensing & nonwoven fiber systems $ 113,548 $ 114,962 3.1% -4.3% -1.2%
Finishing & coating systems 32,150 33,130 -0.4% -2.6% -3.0%
Advanced technology systems 51,754 42,074 24.3% -1.3% 23.0%
----------- -----------
Total sales by business segment $ 197,452 $ 190,166 7.2% -3.4% 3.8%
=========== =========== =========== =========== ===========
First Quarter
-------------------------
OPERATING PROFIT BY BUSINESS SEGMENT 2006 2005
- -------------------------------------------------- ----------- -----------
Adhesive dispensing & nonwoven fiber systems $ 21,554 $ 18,343
Finishing & coating systems (886) 619
Advanced technology systems 11,154 6,938
Corporate (3,625) (2,150)
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Total operating profit by business segment $ 28,197 $ 23,750
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First Quarter % Growth over 2005
------------------------- ---------------------------------------
SALES BY GEOGRAPHIC REGION 2006 2005 Volume Currency Total
- -------------------------------------------------- ----------- ----------- ----------- ----------- -----------
United States $ 66,218 $ 60,285 9.8% 0.0% 9.8%
Americas 15,713 14,554 5.3% 2.7% 8.0%
Europe 70,220 70,828 6.3% -7.2% -0.9%
Japan 18,819 21,469 -3.7% -8.6% -12.3%
Asia Pacific 26,482 23,030 14.2% 0.8% 15.0%
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Total sales by geographic region $ 197,452 $ 190,166 7.2% -3.4% 3.8%
=========== =========== =========== =========== ===========
First Quarter
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SELECTED SUPPLEMENTAL INFORMATION 2006 2005
- -------------------------------------------------- ----------- -----------
Depreciation and amortization $ 6,062 $ 6,387
Capital expenditures $ 4,531 $ 3,136
Dividends paid $ 5,455 $ 5,800