Exhibit 99.1
NORDSON CORPORATION ANNOUNCES RECORD SECOND QUARTER RESULTS; RECORD SALES
CONTINUE FOR NINTH STRAIGHT QUARTER; RECORD EARNINGS PER SHARE CONTINUE FOR
FIFTH STRAIGHT QUARTER
- Worldwide Sales Increase Nearly 12 Percent to $231.8 Million
- Earnings Per Share Increase 36 Percent, Reaching a Record $.64
- Advanced Technology Systems Segment Sales Volume Grows by 33 Percent
- Asia Pacific Region Sales Volume Grows by 52 Percent
WESTLAKE, Ohio, May 25 /PRNewswire-FirstCall/ -- Nordson Corporation
(Nasdaq: NDSN) today announced record sales, earnings and earnings per share for
the second quarter, which ended April 30, 2006. Worldwide sales for the quarter
reached a record $231.8 million, an 11.7 percent increase over the same period
last year. Volume gains of 15.4 percent were offset by negative currency effects
of 3.7 percent.
On a diluted basis, earnings per share for the quarter were $.64, compared
with $.47 for the same period of 2005 - a 36 percent increase. Included in
second quarter operating expenses was a charge of $1 million, or $.02 per share,
related to the adoption in the first quarter 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
approximately $500,000, while restructuring charges for the Adhesive Dispensing
and Nonwoven Fiber Systems segment totaled approximately $400,000, for a
combined $.02 per share.
Second quarter sales volume for the Advanced Technology Systems segment was
up 33 percent. Volume was up 11 percent in the Adhesive Dispensing and Nonwoven
Fiber Systems segment and up 7 percent in the Finishing and Coating Systems
segment.
On a geographic basis, second quarter sales volume was up in all areas, with
the Asia Pacific region seeing volume increases of 52 percent. Volume was up 27
percent in the Americas, 16 percent in Japan, 12 percent in Europe and 4 percent
in the United States.
Backlog at the end of the second quarter was approximately $92 million, up
more than $13 million since the beginning of the fiscal year, calculated at
constant exchange rates.
For the first half of fiscal 2006, sales were a record $429.3 million, a 7.9
percent increase over the first half of 2005. Sales volume increased 11.5
percent, with unfavorable currency effects of 3.6 percent offsetting the gains.
Year-to-date earnings per share on a diluted basis were a record $1.11, compared
with $.86 for the same period last year.
"We're very pleased with our performance this quarter, most notably the 15
percent increase in worldwide sales volume," said Edward P. Campbell, chairman
and chief executive officer. "We continue to see tremendous growth in our
Advanced Technology Systems segment, which increased 33 percent from this time
last year, reflecting success in our strategy of broadening the product
offering," Campbell added. "We are also pleased by the continued improvement of
our Adhesive Dispensing segment, which saw an 11 percent growth in sales volume,
driven by increases in our Nonwovens, Web Coating and Product Assembly
businesses."
"We are encouraged by the double-digit sales volume increases we saw in all
of our International markets, including the record 52 percent growth in the Asia
Pacific region. Nordson has long had a broad international presence and that
factor is clearly generating value in the current environment," said Campbell.
Nordson will broadcast its second quarter conference call on the investor
relations page of its Web site, www.nordson.com, on Friday, May 26, 2006 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 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
SECOND QUARTER PERIOD
Period Ending April 30, 2006
(Unaudited)
NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands except
for per-share amounts)
CONSOLIDATED STATEMENT OF INCOME
Second Quarter Year-to-Date
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net sales $ 231,830 $ 207,623 $ 429,282 $ 397,789
Cost of sales 102,205 92,068 185,859 175,693
Selling & administrative expenses 93,584 87,377 179,185 170,168
Operating profit 36,041 28,178 64,238 51,928
Interest expense - net (3,006) (3,032) (6,285) (5,982)
Other income (expense) - net 15 747 (692) 1,230
Income before income taxes 33,050 25,893 57,261 47,176
Income taxes 11,119 8,415 19,263 15,332
Net income $ 21,931 $ 17,478 $ 37,998 $ 31,844
Return on sales 9% 8% 9% 8%
Return on average shareholders'
equity 24% 16% 21% 15%
Average common shares outstanding
(000's) 33,437 36,320 33,215 36,273
Average common shares and
common share equivalents (000's) 34,358 37,146 34,098 37,173
Per share:
Basic earnings $ .66 $ .48 $ 1.14 $ .88
Diluted earnings $ .64 $ .47 $ 1.11 $ .86
Dividends paid $ .165 $ .16 $ .33 $ .32
SECOND QUARTER PERIOD
Period Ending April 30, 2006
(Unaudited)
NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands except
for per-share amounts)
CONSOLIDATED BALANCE SHEET
April 30, October 30,
2006 2005
------------ ------------
Cash and marketable securities $ 43,912 $ 11,484
Receivables 180,482 181,660
Inventories 87,780 81,868
Other current assets 36,788 36,704
Total current assets 348,962 311,716
Property, plant & equipment - net 110,058 110,531
Other assets 365,456 366,279
$ 824,476 $ 788,526
Notes payable and debt due within one year $ 62,767 $ 72,079
Accounts payable and accrued liabilities 161,557 177,995
Total current liabilities 224,324 250,074
Long-term debt 101,420 101,420
Other liabilities 105,174 106,120
Total shareholders' equity 393,558 330,912
$ 824,476 $ 788,526
Other information:
Employees 3,645 3,653
Common shares outstanding (000's) 33,749 32,911
SECOND QUARTER PERIOD
Period Ending April 30, 2006
(Unaudited)
NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands)
Second Quarter % Growth over 2005
---------------------------- --------------------------------------------
SALES BY BUSINESS SEGMENT 2006 2005 Volume Currency Total
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Adhesive dispensing &
nonwoven fiber systems $ 133,512 $ 125,933 10.8% -4.8% 6.0%
Finishing & coating systems 35,947 34,394 7.4% -2.9% 4.5%
Advanced technology systems 62,371 47,296 33.4% -1.5% 31.9%
Total sales by business segment $ 231,830 $ 207,623 15.4% -3.7% 11.7%
Second Quarter
OPERATING PROFIT BY BUSINESS ----------------------------
SEGMENT 2006 2005
- ----------------------------------- ------------ ------------
Adhesive dispensing & nonwoven
fiber systems $ 25,794 $ 24,174
Finishing & coating systems 642 364
Advanced technology systems 17,239 9,385
Corporate (7,634) (5,745)
Total operating profit by
business segment $ 36,041 $ 28,178
Second Quarter % Growth over 2005
---------------------------- --------------------------------------------
SALES BY GEOGRAPHIC REGION 2006 2005 Volume Currency Total
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
United States $ 74,305 $ 71,651 3.7% - 3.7%
Americas 17,793 13,630 27.3% 3.2% 30.5%
Europe 79,748 76,574 12.1% -8.0% 4.1%
Japan 21,288 20,295 15.7% -10.8% 4.9%
Asia Pacific 38,696 25,473 51.6% 0.3% 51.9%
Total Sales by Geographic Region $ 231,830 $ 207,623 15.4% -3.7% 11.7%
Second Quarter
----------------------------
SELECTED SUPPLEMENTAL INFORMATION 2006 2005
- ----------------------------------- ------------ ------------
Depreciation and amortization $ 6,232 $ 6,395
Capital expenditures $ 2,423 $ 5,195
Dividends paid $ 5,508 $ 5,814
SECOND QUARTER PERIOD
Period Ending April 30, 2006
(Unaudited)
NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands)
Year-to-Date % Growth over 2005
---------------------------- --------------------------------------------
SALES BY BUSINESS SEGMENT 2006 2005 Volume Currency Total
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Adhesive dispensing &
nonwoven fiber systems $ 247,060 $ 240,895 7.2% -4.6% 2.6%
Finishing & coating systems 68,097 67,524 3.6% -2.8% 0.8%
Advanced technology systems 114,125 89,370 29.1% -1.4% 27.7%
Total sales by business segment $ 429,282 $ 397,789 11.5% -3.6% 7.9%
Year-to-Date
OPERATING PROFIT BY BUSINESS ----------------------------
SEGMENT 2006 2005
- ----------------------------------- ------------ ------------
Adhesive dispensing & nonwoven
fiber systems $ 47,348 $ 42,517
Finishing & coating systems (244) 983
Advanced technology systems 28,393 16,323
Corporate (11,259) (7,895)
Total operating profit by
business segment $ 64,238 $ 51,928
Year-to-Date % Growth over 2005
---------------------------- --------------------------------------------
SALES BY GEOGRAPHIC REGION 2006 2005 Volume Currency Total
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
United States $ 140,523 $ 131,936 6.5% - 6.5%
Americas 33,506 28,184 15.9% 3.0% 18.9%
Europe 149,968 147,402 9.3% -7.6% 1.7%
Japan 40,107 41,764 5.7% -9.7% -4.0%
Asia Pacific 65,178 48,503 33.8% 0.6% 34.4%
Total Sales by Geographic Region $ 429,282 $ 397,789 11.5% -3.6% 7.9%
Year-to-Date
----------------------------
SELECTED SUPPLEMENTAL INFORMATION 2006 2005
- ----------------------------------- ------------ ------------
Depreciation and amortization $ 12,294 $ 12,782
Capital expenditures $ 6,954 $ 8,331
Dividends paid $ 10,963 $ 11,614