Exhibit 99.1
NORDSON CORPORATION
28601 Clemens Road
Westlake, Ohio 44145-1119
NORDSON CORPORATION ANNOUNCES RECORD THIRD QUARTER RESULTS
o Worldwide Sales Increase 12 Percent to $226 Million
o Earnings Per Share Increase 44 Percent to a Record $.72
o Advanced Technology Systems Segment Continues Strong Performance with
25 Percent Sales Volume Growth
o Sales Volume Grows in All Geographic Markets - 26 Percent in Asia
Pacific
WESTLAKE, Ohio - August 23, 2006 - Nordson Corporation (Nasdaq:NDSN) today
announced record sales, earnings and earnings per share for the third quarter,
which ended July 31, 2006. Worldwide sales for the quarter reached a record $226
million, a 12.1 percent increase over the same period last year. Volume gains of
11.8 percent were aided by favorable currency effects of 0.3 percent.
Third quarter sales volume for the Advanced Technology Systems segment was up
25 percent. Volume was up 8 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, third quarter sales volume was up in all areas, with the
Asia Pacific region's volume increasing 26 percent. Volume was up 11 percent in
the United States, 10 percent in Europe, 8 percent in the Americas and 3 percent
in Japan.
On a diluted basis, earnings per share for the quarter were $.72, compared to
$.50 for the same period of 2005 - a 44 percent increase. Included in third
quarter operating expenses was a charge of approximately $850,000, or $.02 per
share, related to the adoption in the first quarter of new accounting guidelines
for expensing stock options. In addition, charges related to the restructuring
of the Finishing and Coating Systems segment amounted to approximately $200,000,
while restructuring charges for the UV Curing and Drying Systems business
totaled approximately $350,000, for a combined $.01 per share. Third quarter
results also included a charge of approximately $2.8 million for estimated
remediation costs associated with an environmental claim at a New Richmond, WI,
municipal landfill. Also in the third quarter, Nordson recorded a $3.1 million
federal tax refund, which resulted in the reduction of our effective tax rate to
23.7 percent, compared to the 33.6 percent for the previous two quarters.
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Nordson Corporation - August 23, 2006 page 2 of 3
Backlog at the end of the third quarter was approximately $95 million, up more
than $15 million since the beginning of the fiscal year, calculated at constant
exchange rates.
For the first three quarters of 2006 sales were $655 million, a 9 percent
increase over the same period of the prior year. Sales volume increased 12
percent with unfavorable currency effects accounting for the balance. Earnings
per share on a diluted basis were $1.84 compared with $1.36 for the same period
last year.
"Nordson had another strong quarter, with 12 percent growth in sales volume
coming from solid growth across all of our segments and geographies," said
Edward P. Campbell, chairman and chief executive officer. "I am particularly
pleased with the continued strong performance in our Advanced Technology
segment, which had 25 percent sales volume growth. Although we continue to post
orders that compare positively to last year, we have seen a deceleration of
order growth. This trend, coupled with a particularly strong fourth quarter of
2005, yields an outlook for relatively flat sales for the fourth quarter as
compared to the prior year."
Nordson will broadcast its third quarter conference call on the investor
relations page of its Web site, www.nordson.com, on Thursday, August 24, 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.
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Nordson Corporation - August 23, 2006 page 3 of 3
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 - August 23, 2006 page 4 of 4
THIRD QUARTER PERIOD
Period Ending July 31, 2006
(Unaudited)
NORDSON CORPORATION
-------------------
FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)
Third Quarter Year-to-Date
-------------------------------- --------------------------------
CONSOLIDATED STATEMENT OF INCOME 2006 2005 2006 2005
- --------------------------------- -------------- -------------- -------------- --------------
Net sales $ 225,965 $ 201,570 $ 655,247 $ 599,359
Cost of sales 98,338 87,748 284,197 263,441
Selling & administrative expenses 93,609 85,874 272,794 256,042
-------------- -------------- -------------- --------------
Operating profit 34,018 27,948 98,256 79,876
Interest expense - net (1,763) (2,787) (8,048) (8,769)
Other income (expense) - net 280 (50) (412) 1,180
-------------- -------------- -------------- --------------
Income before income taxes 32,535 25,111 89,796 72,287
Income taxes 7,721 6,520 26,984 21,852
-------------- -------------- -------------- --------------
Net income $ 24,814 $ 18,591 $ 62,812 $ 50,435
============== ============== ============== ==============
Return on sales 11% 9% 10% 8%
Return on average shareholders'
equity 25% 17% 23% 16%
Average common shares outstanding
(000's) 33,597 36,208 33,337 36,251
Average common shares and
common share equivalents (000's) 34,460 36,843 34,215 37,063
Per share:
Basic earnings $ .74 $ .51 $ 1.88 $ 1.39
Diluted earnings $ .72 $ .50 $ 1.84 $ 1.36
Dividends paid $ .17 $ .16 $ .50 $ .48
Nordson Corporation - August 23, 2006 page 5 of 5
THIRD QUARTER PERIOD
Period Ending July 31, 2006
(Unaudited)
NORDSON CORPORATION
-------------------
FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)
July 31, October 30,
CONSOLIDATED BALANCE SHEET 2006 2005
- ------------------------------------------- -------------- --------------
Cash and marketable securities $ 20,086 $ 11,484
Receivables 179,615 181,660
Inventories 88,591 81,868
Other current assets 36,589 36,704
-------------- --------------
Total current assets 324,881 311,716
Property, plant & equipment - net 108,382 110,531
Other assets 365,963 366,279
-------------- --------------
$ 799,226 $ 788,526
============== ==============
Notes payable and debt due within one year $ 23,204 $ 72,079
Accounts payable and accrued liabilities 155,900 177,995
-------------- --------------
Total current liabilities 179,104 250,074
Long-term debt 97,130 101,420
Other liabilities 112,993 106,120
Total shareholders' equity 409,999 330,912
-------------- --------------
$ 799,226 $ 788,526
============== ==============
Other information:
Employees 3,643 3,653
Common shares outstanding (000's) 33,665 32,911
Nordson Corporation - August 23, 2006 page 6 of 6
THIRD QUARTER PERIOD
Period Ending July 31, 2006
(Unaudited)
NORDSON CORPORATION
-------------------
FINANCIAL HIGHLIGHTS
(Dollars in thousands)
Third Quarter % Growth over 2005
------------------------- ---------------------------------------
SALES BY BUSINESS SEGMENT 2006 2005 Volume Currency Total
- -------------------------------------------------- ----------- ----------- ----------- ----------- -----------
Adhesive dispensing & nonwoven fiber systems $ 128,395 $ 119,093 7.6% 0.2% 7.8%
Finishing & coating systems 34,450 32,167 7.0% 0.1% 7.1%
Advanced technology systems 63,120 50,310 25.1% 0.4% 25.5%
----------- -----------
Total sales by business segment $ 225,965 $ 201,570 11.8% 0.3% 12.1%
=========== =========== =========== =========== ===========
Third Quarter
-------------------------
OPERATING PROFIT BY BUSINESS SEGMENT 2006 2005
- -------------------------------------------------- ----------- -----------
Adhesive dispensing & nonwoven fiber systems $ 24,494 $ 22,439
Finishing & coating systems 2,723 (411)
Advanced technology systems 14,944 10,948
Corporate (8,143) (5,028)
----------- -----------
Total operating profit by business segment $ 34,018 $ 27,948
=========== ===========
Third Quarter % Growth over 2005
------------------------- ---------------------------------------
SALES BY GEOGRAPHIC REGION 2006 2005 Volume Currency Total
- -------------------------------------------------- ----------- ----------- ----------- ----------- -----------
United States $ 73,263 $ 66,236 10.6% 0.0% 10.6%
Americas 15,758 14,156 8.0% 3.3% 11.3%
Europe 80,384 72,086 10.4% 1.1% 11.5%
Japan 20,050 20,369 3.2% -4.8% -1.6%
Asia Pacific 36,510 28,723 26.4% 0.7% 27.1%
----------- -----------
Total Sales by Geographic Region $ 225,965 $ 201,570 11.8% 0.3% 12.1%
=========== =========== =========== =========== ===========
Third Quarter
-------------------------
SELECTED SUPPLEMENTAL INFORMATION 2006 2005
- -------------------------------------------------- ----------- -----------
Depreciation and amortization $ 6,212 $ 6,335
Capital expenditures $ 2,861 $ 2,387
Dividends paid $ 5,720 $ 5,795
Nordson Corporation - August 23, 2006 page 7 of 7
THIRD QUARTER PERIOD
Period Ending July 31, 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 $ 375,455 $ 359,988 7.3% -3.0% 4.3%
Finishing & coating systems 102,547 99,691 4.7% -1.8% 2.9%
Advanced technology systems 177,245 139,680 27.7% -0.8% 26.9%
----------- -----------
Total sales by business segment $ 655,247 $ 599,359 11.6% -2.3% 9.3%
=========== =========== =========== =========== ===========
Year-to-Date
-------------------------
OPERATING PROFIT BY BUSINESS SEGMENT 2006 2005
- -------------------------------------------------- ----------- -----------
Adhesive dispensing & nonwoven fiber systems $ 71,842 $ 64,956
Finishing & coating systems 2,479 572
Advanced technology systems 43,337 27,271
Corporate (19,402) (12,923)
----------- -----------
Total operating profit by business segment $ 98,256 $ 79,876
=========== ===========
Year-to-Date % Growth over 2005
------------------------- ---------------------------------------
SALES BY GEOGRAPHIC REGION 2006 2005 Volume Currency Total
- ------------------------------------------------ ----------- ----------- ----------- ----------- -----------
United States $ 213,786 $ 198,172 7.9% 0.0% 7.9%
Americas 49,264 42,340 13.3% 3.1% 16.4%
Europe 230,352 219,488 9.6% -4.7% 4.9%
Japan 60,157 62,133 4.9% -8.1% -3.2%
Asia Pacific 101,688 77,226 31.1% 0.6% 31.7%
----------- -----------
Total Sales by Geographic Region $ 655,247 $ 599,359 11.6% -2.3% 9.3%
=========== =========== =========== =========== ===========
Year-to-Date
-------------------------
SELECTED SUPPLEMENTAL INFORMATION 2006 2005
- -------------------------------------------------- ----------- -----------
Depreciation and amortization $ 18,506 $ 19,117
Capital expenditures $ 9,815 $ 10,718
Dividends paid $ 16,683 $ 17,409