NDSN - Earnings call transcript Q2 2018

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Operator

Good day ladies and gentlemen, and welcome to Nordson Corporation Webcast for Second Quarter Fiscal Year 2018. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions for how to participate will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today’s conference, Ms. of and President Vice Mahoney, Investor Communications. Relations Lara you may begin. Ma’am,

Lara Mahoney

Jimmy. Good you, morning. Thank

CFO. to Nordson results We today, you outlook as are welcome pleased third our to quarter year XX, quarter and Lara to Vice fiscal well as second Nordson. Mike with Tuesday, I’m XXXX, Corporation’s is President CEO; Greg Investor Executive Mahoney, President report Thaxton, and the XXXX. financial for and year for name fiscal Relations of XXXX President here Hilton, Vice May call conference My and for our Communications

Our can webpage conference there our conference will accessed XXX-XXX-XXXX. be a is for being nordson.com/investors available of which broadcast replay call live by dialing available be on be will telephone at our until XX June There days. XXXX, and X,

ID need number will to XXXXXXX. You reference

as conference of this with on based will involve Mike. current the During made be our quarter, call I’ll to could forward-looking uncertainties, filings the the may risks, future cause and in remarks a call, regarding take on and differ. statements we performance our factors expectations. discussed that results turn may number to actual the These Company’s Nordson’s statements happy questions. With After to over your that, Exchange be Securities other Commission

Mike Hilton

diluted share, EBITDA our good a the global led second improvement dedicated strategic on of our year to acquisitions quarter fit performance many per Thank their for joining I’d second to Thank resilient a the record and of profit, to call. for and everyone. operating ago. our commend The you, Nordson’s Lara, conference commitment business base compared quarter you metrics, with morning, delivered XXXX second coupled We quarter focus. team like and as in recent and earnings

in offer provide a tiering, financial commentary will product best and results sustained performance. now Greg solutions, few I’ll bottom providing initiatives, the on improvement continuous more highlights technology some on drove Our solid and detailed line focus moments. our

records. quarter, the period impressive $X EBITDA at one-time reaching against operating the quarter. segment where quarter in of organic organic XXX XX% quarter, segment quarter, compared margin challenging in sales, asset in year current current total EBITDA Company ago, earnings expense very share in delivered over These strong improved year’s total and are second excluding solid as the diluted Company adjusted year’s a per second each charges and profit, margin second growth prior X% year quarter the results operating our Each and was delivered where performance. last incremental basis the million growth quarter, adjusted Looking strong XX% points the second all the operating same amortization current and were sales margin to second was intangible highlighting comparison,

third prior face we third the Company each quarter, third growth the quarter, to comparisons to organic ahead growth the and our speak more delivered and segment where Looking was year’s to total more moments, guidance. challenging I’ll very XX%. turn strong on sales provide organic a but a over first outlook the call Greg? perspective the quarter second few about Greg, I’ll detailed in our to quarter

Greg Thaxton

quarter Thank second outlook quarter our morning XXXX. of provide you, everyone. I’ll for good moving before Mike, on to first some comments the results, and to on our third fiscal

currency in Inclusive first to Second organic was last translation a particularly of we Systems XX%. guidance moderation Advanced year second organic where the midpoint expected related segment X% effect prior of related was volume quarter. of in the against to the over approximately to results, and the year’s prior prior compared volume, sales second Technology year’s quarter effects in increased XX% our increase range quarter. increase of approximately in favorable line sales year with our year’s growth X% the Organic acquisitions decrease X% approximately at coming expectations, as of the

Dispensing organic against second quarter. growth last was organic X% year’s Adhesive in segment, about the X% down volume Within

end second half remains the Our market expect of year. this grow the demand in relatively we segment organically to strong and

Technology second segment, down was to compared organic X% volume growth the Within organic XX%. prior the quarter as Systems Advanced of year’s

of Although we moderation and markets. electronic in lines, acquisition two performance growth of did GmbH acquisition impacted of months current includes quarter the in certain in XXXX This XXXX expected quarter management performance. the strong in growth growth included acquisition, both Vention partial end acquisitive product Prior year a segment’s Sonoscan. the see XXXX of systems the very month InterSelect fluid and

this powder and Coating Industrial drove sales Within growth container lines organic product segment, quarter’s the of X%.

income gross quarter. the current to which operating for to total XX% the Operating compared $XXX of profit down XX% prior statement, Company the XX% improved quarter, as reported second the million year’s quarter. was the margin margin in Moving in

second approximately quarter. As incremental the million as include asset Mike mentioned, expense $X of results the to compared quarter’s and amortization year’s prior tangible

million $X the incremental operating was were step-up value $X for and quarter. in of Adjusted quarter inventory million XX% a current charge the acquired $X in million expense. the charge restructuring, Excluding of margin amortization in

incur As million. the by facility’s with XX or points operating the effort adhesive costs earnings noted basis February consolidation in that approximately impacted Company $X margin call, incremental we did total associated

consolidation delivered XX% On in $X be the million million Adhesive incremental $X a or million facility We’re million quarter. onetime charges will costs quarter basis, related operating for of efforts. the of in estimating to the $X the third to fourth exclude approximately about $X and costs the XX% restructuring second strong incremental in Dispensing segment margin and this quarter the initiative

of basis which per The share. purchase the value diluted was of earnings of XX second incremental quarter the prior increase of $X quarter XX% operating asset GAAP when and basis, in XX% diluted Company step-up restructuring second amortization up charges share million Technology the share. Industrial related delivered margin excluding $X.XX per of year margin for volume reduced per Coating from the short-term earnings and million GAAP The the Systems $X million related income Advanced in in charges and $X.XX incremental to Sonoscan share On the the Within segment, million $X leverage. $XX a inventory asset purchase share, were operating total short-term quarter, the due accounting diluted per a acquired earnings share, $X million accounting per expense is of step-up net of amortization reduced earnings points inventory. value to year prior the segment $X XX% intangible intangible or was reported XX% diluted million charges by non-recurring $X.XX to in for acquired by per over the

$XXX the to two acquired year’s of million a Adjusted trailing million $X.XX financial of perspective, XX% per share reconciliation a exclude quarter adjusted EBITDA of tax XX improved We inventory. excess transactions GAAP EBITDA non-GAAP are was of per related press second quarter. payment or release. our second delivered second $X sheet share tax to step-up $XXX Additionally, sales. of a the included the over quarter approximately A of recognized value diluted which benefits in exhibits to an benefit on expense. or a to of basis quarter XXX the debt margin income was the in adjusted tax end share-based prior in the net per balance times at for earnings strong earnings to From share months EBITDA points to credited million basis is

of net financial release quarter to flow exhibits for income as dividends third press before adjusted outlook the and includes cash free adjusted dividends, turn EBITDA. and well Our to I’ll free the fiscal before reconciling flow as cash EBITDA now XXXX.

third quarter, in the As including in growth recently Technology quarter facing completed the comparisons in organic prior in where strong year segment. third quarter, Advanced growth Systems XX%, we by was organic are growth XX% second very driven three segments, organic our all difficult

sales down X% quarter outlook as current X%, range to to prior and based to the positive effect in to of in first year. effect We up environment growth as X% X% of be organic acquisitions on rate forecasting the be currency This to exchange from down a X% the a are range of year volume the third year down compared compared the includes of the X% ago.

are automotive to serving softness product segment this be We quarter solid the approximately of third midpoint growth each organic dispense with margin in and XX% XX%. and At the be expect lines, most about gross margin forecasting markets. all we lines product end to outlook, electronic in in operating

$X.XX quarter resulting third interest amortization and $XX expense estimating of third in share. diluted to diluted million earnings We’re million, GAAP per and depreciation range $XX $X.XX about of of forecasted about in the quarter expense

of Mike. income, tax on EBITDA over turn XX%. law I’ll to Consistent with our be estimated to our of And be the in We to tax call, earnings third in quarter with range rate expect jurisdictional February and $XXX a and our for mix the back current million based comments call million. the $XXX effective approximately full-year, is you, the to that,

Mike Hilton

basis I’d my XXXX, growth expect organic for single Greg. Advanced means the for Again, Thank like full-year strong, XXXX. express sales team are growth our outstanding total We was which particularly helping up during record digits comparisons to challenging we fiscal a generate in in Organic segment. quarter against however second you, XXXX results. deliver Technology global on do appreciation in Company low the to exceptionally to

best and service business while tools drive Our customer to solutions team results, operating experience. line leveraging the efficiencies is committed within system Nordson bottom the the to and delivering technology

we and Our target we will continue questions. opportunities growth. strategic capital the help that, take and With remain to high-quality long-term your the that consistent our marketplace pause for deployment vision objectives in drive will

Operator

Allison Thank comes you. [Operator question from first with Fargo. Instructions] Our Wells Poliniak

Your line is open. now

Allison Poliniak

morning. Good guys. Hi,

Mike Hilton

morning, Al. Good

Allison Poliniak

that with of pretty any are Could you anything experiencing or like conversations? your change I consistent customer tone or in mean, it to is that you you talk be expectations? seeing might terms

Mike Hilton

quarter say, customers. second look pretty when seeing the we our say, I’d from consistent in not current tone would certainly And we’re our business, any I particular change expectations. at was with

Allison Poliniak

think Great. Dispensing, assume And Should said, growth the into back any kind that guess, And your in year, half I’m organic comments. back Mike, QX? then, in on side, have the of just I Adhesive you trying growth to into I visibility you to and there? we color Greg Dispensing organic I think, just Adhesive in

Mike Hilton

Yes.

Adhesive We organic in growth in QX. expect segment to see

I or work electronics dispense think as piece mobile the against around really we’ve headwinds segment. in some past, the about automobile up were the and the and talked platform

as expect, in was growth that, we lines. we business businesses and mentioned, Beyond solid rest of those solid see to -- the product the

Operator

Capital. our question Jeff Hammond Thank you. And from with comes next KeyBanc

Your line is now open.

Jeff Hammond

guys. morning, Good Hi.

Mike Hilton

morning, Jeff. Good

Jeff Hammond

levels, look, between as record I it the nicely there historically, backlog correlation is And and think, I next good that as So, quarter out. at up XX% pretty core. grew like seems

just don’t I the know out XQ? weaker reconcile if and how maybe Thanks. growth into is So, orders. to backlog timing plays trying guide, the kind there versus in XQ the of I’m some that

Mike Hilton

Jeff. Yes,

have electronic do challenge quarter. point, which larger we is So, backlog, last year. delivered I’d in at flattish projects, say some get some increase kind the of of in dispense again if are in biggest QX. at the rates The fourth which you look saw piece we dramatic last the current will to this orders order

out at putting last not year. same to the And level that that to this that third so, the And that’s line for in there product as year, we’re expectations really our reflects operate quarter. view what’s saw at guidance able we look be we’re particular the covering going we

Jeff Hammond

platform, or there? Okay. seeing tough of some automotive in And the is you automotive that are function then, a slowing comps

Mike Hilton

we’ve piece Last is seen related. year before, the look an statistics affects platform was than if changeover forth, the is that from to be of our that from operating say, at year I’d softer little global automakers. and year and softer so a little yet. But parts which down overall really slow this you model solid. business And continues some standpoint the rate

work generates business, comp we’re So, particular business. up in against that’s larger platform and that that the

at If other nice we’re the growth some the of Coating there. Industrial you look seeing business, parts

Jeff Hammond

you can business growth you how think the the the medical rates? Okay. And grows Thanks. in of to of just finally, relative second then, about half year normal kind talk

Mike Hilton

Yes.

that along what second we’re in sort in of We we the single of of are lines parts really the the that expect well All digit to business. that the the kind year, different high business pleased growth of medical what we growth half very with in see of performing in solid factored. business see business, and

Operator

our you. from question Summerville Thank from next Davidson. Matt comes And D.A.

Your is line open.

Matt Summerville

questions. Couple Thanks. of

I million, you I $X QX to down to are non-restructuring the you First, And number $X $X but don’t million I the think me, hits front Adhesive step million million million year. respect as just with said $X taking, than QX number this have a then remember, in $X a million. of to Dispensing, in

efficiency away in help million removing an gain do that you $XX that? all XXXX. Can it on XXXX? you And call go bridge of inefficiencies, fiscal guess, from in just top let’s Does So, standpoint? fiscal those what I

Mike Hilton

Yes.

comment. let So, me

we’re Right in core we’re facilities on recall to have you as throughout of our going If part now, one. U.S. two year. continue that from one the Europe, components transition. to four we the we in do facilities business, the from three operating to going That that business. And in will

So, facilities parts. we of facts than long those improve expect the to we’re of And new are those investing the to run operating as we’ve been that in efficiency. duplicate of contributing really part more that sort in technology

of to volume should year, in end finished to in well, here time time year. this be should over away of that’s that over would So, as improved then, which expect go the see the see calendar by XXXX, business. Obviously, efficiencies but costs say, we loading the efficiencies. we And function expect duplicate a I’d

Matt Summerville

provide sticking terms more what there? more product you Can versus business Can key specifics bit of you little in around give seeing you little more granularity detail And are trends just product Adhesives, versus assembly? talk rigid, typically plastics a by a processing non-woven categories. you with about

Mike Hilton

be the the in the various and end improvements variety intake encouraging sign business, the the of order on we’re plastic we a are in side, on product up quarter-to-quarter projects. year. core we solid our our to the say, I’d year our ordering that is can support. based and and for area the of packaging expectations lines for say, And we’re but vary non-wovens different solid seeing say, in growth seeing I’d Yes. growth of markets that then, expect assembly that OEMs product adhesives I’d just some remainder in

Operator

next Thank you. comes from SunTrust. Charlie question Brady our And with

is line Your open.

Charlie Brady

Good Thanks. morning, guys.

Mike Hilton

Good morning, Charlie.

Charlie Brady

one here you on material quick are road costs, rest a be prices seeing of the seeing of the raw any or kind maybe might Just on down that impact year?

Mike Hilton

Yes.

area a there. pushes are couple side, with there, a of we Just where some comments we some protection say, strategy metal have Charlie. the the and agreements sourcing seeing I’d our in strong

it’s pricing there. our any say, into as not we this as be I’d point. effect that think translated we manage sourcing So, we’ll on can And able activities at really well to any significant through pass

seeing a offset as activity So, a continuous the issue. there. I cost as of is But increases our part deck other say, and of that don’t see that’s our big I’d labor, focus we’re help those. improvement around to

the I’d So moment. say out of ordinary at nothing the

Charlie Brady

runs wondering Can of parts you give you guys. break high the just there. give on of Can for unusual aftermarket of I’m piece down it, the us component it? granularity that? pretty any Generally, you it some

Mike Hilton

and medical it’s like It’s single about use little that, will stay the right grow time, at but bit point. above this half things and probably the grow with or that Over business about half. half half as a components

Charlie Brady

for me. And Right. more just one

you product a ago. development about kind you’re Can talk So, where and the see you seeing you standpoint weren’t going of development guys does just that going years lot having you actually creating that accelerate forward? forward, markets particularly in of product in new of a new a growth going on few life sciences out, kind

Mike Hilton

Yes.

success a we that’s quite with a for the in development. critical us frankly, had So, have focus lot new of long product run. And

So, getting across traction and products, product we’re those. introducing good on lines, all our I’d we’re new of say

electronics business, side result While we’ve a in year new the inspection this strong growth business our as has from the nice more challenging expense in products. a been seen of

seeing tier some business, nice including in haven’t introductions served to customers electric a in XXX taking going our before. it’s adhesives so run. probably a advantage should example specifically and for And the which nice fit battery. the It’s that It’s now. long we in contributor continue electric grow be but applications, in our really seeing on coatings new tiering product continuing of We’re growth our we’re some to across related or nice new applications that contributor right a strategy new lower battery not to huge, products certain and business,

the business. say, So, of I’d lifeblood to the be continues

a global is like long new something in We’re driving and get quite multiple And why That we products. going applications. combination create and frankly times to long focus on new what run. GDP above helps us markets X into grow in can to run at continuing products the grow we’re new because GDP, that’s the new

Operator

next Glynn comes our Oppenheimer. And you. Thank question with Christopher from

open. now is line Your

Christopher Glynn

Thanks. Good morning.

margins, the ADS second to first strong tick-up the there from move maybe very So, pro to a forma, bigger quarter? impact kind mix seasonally Was of you normal. favorable than FX quarter as or

Mike Hilton

say, get certainly from of the mix across products lines did currency was we would the Yes. benefit And I as favorable. various a the well. product

Christopher Glynn

I the terms Is payback non-restructuring $XX about that a as year. we’re inefficiencies? incidental of the think in And forma that of for better the at hits thought bucket million than Okay. looking pro

Mike Hilton

Well, that certainly year-on-year should away. go cost

improvement But as should only So, those the consolidated step be we time, should we’ve over equipment in see not in lines there up. automation. a through margin continued product but updated consolidated,

be it’ll time. combination a plays over both, out it as So,

Christopher Glynn

for view And capital just the of balance curious, the great. your relative deployment Okay, of year.

and debt between toggle You reduction bolt-ons, repurchase views. share

Mike Hilton

I’d everything support to organic growth. continue say, do number we we to can one, our

that’s the not more M&A not road. capacity change. change potential are our with an approach in to to the standpoint, From down going opportunities So, dividend for and creating going short-term we focused is

near have to reducing we’ll focused debt-to-EBITDA term. do the and levels on So, in been we continue the that

think, I plays pipeline how on it term, longer depends timing out. really acquisition and the

opportunities. have We some good got

focus to predict fruition. you As come But on are debt can near-term now, the fully right never is reducing our when they we know, going to level.

Operator

Trusz from & Gabelli next Thank question Company. Matthew our with you. And comes

is line Your open.

Matthew Trusz

questions. Thank morning. you taking for Good my

Mike Hilton

Good morning.

Matthew Trusz

these impacted growth that efforts facility consolidation segment’s ADS Have anyway?

Mike Hilton

in I’d the say, not near-term.

we we to because as an have it’s to engineer largely business. in us has challenge the facilities for operate than transition a order think, a I like been more

to really accelerate so, build And inventory that. we can’t

fashion a moving load facility. up we been equipment stepwise as in we’ve products the new So,

So, operating businesses into really some the in would that’s costs inventory. translated where than we we more other build can have

Greg Thaxton

suggest investment What less technology, we’ve the positive made in touch, it direction, to providing in with this paste move first is, Matt, more trying environment, actually so is quality, efficient better manufacturing Greg. capacity. in the I’d we’re more actually

Matthew Trusz

thank comp deals to Okay, capacity. on either that discrete niche there certain a bigger contribute following M&A a out building you. up Is are seeing reason you’re larger build And why that and investment? that you your require that just

Mike Hilton

year. couple this a made year Well, four ones smaller we last and large acquisitions of

so, And moving we have we level pipeline. that a to in X the X down But the or do to really solid any plus focus so. has should not way come forward. been a sure from constrained make want And we’re opportunities

in a forever still that So term near not the our the that’s that’s focus. comment; near-term in

Operator

Thank question the Review. Stratton next with David you. And Lakes from comes Great

now is line open. Your

David Stratton

taking Good you morning. the for Thank questions.

Mike Hilton

Good morning.

David Stratton

some What on color from hearing around to just scenes there you and the customers can you that’d are what foreign starting regarding hear helpful. behind might going on of be your you be the you’re anything tariffs what see paint or impact or basis, seeing the are if

Mike Hilton

certain I being are dialogue term. decisions I in that’s an would well are of and in certain but they back aware going forth. vigilant, making say, they would it’s any impact having say, near the obviously on countries customers Yes. don’t are the think I

that any anything the as project are we delays necessarily result not like a of discussions. So, seeing or

balanced pretty of ability the we’re footprint in to Now, our supply. manufacturing globe around terms or

in forward. that regard. off not putting result as we that’ll hearing of in are concerns for term, near But, be customers projects us going helpful the So, a

David Stratton

think, and still just Is also in going I pretty that growth remember, strong politically mobile growth, cycle? -- what’s the and automation phone then China I that regarding on lags? again in was regarding there year, there especially once last And

Mike Hilton

new and anything bit just incremental growth a that. a function in year I issues a and little the to on what a is has It’s fair and really very And is like mobile of of little area overall a in So, there little we’re demand. year approach bit introduced less moderated innovation, any the that. politics This that’s there strong for bit. was an year phones having market a related lot the more think or smartphone innovation. impact particular, of was seeing last handset bit don’t

a growth Nothing moderation side the of new us, year little expense for for particularly a mobile combination a the making handset So, not some politically and market. more lot on related a in is there. bit challenging

David Stratton

look press final one for outlook, me. I And some this done it adjusted then, quarter’s you’ve that like you give Normally, think in and release. doesn’t EPS

for if if was could the is what or you you I results So, adjusted wondering comment reason the be there expect a on outlook. to

Greg Thaxton

guidance to charges significant. onetime the be comment results, Greg. be This we we going which is guide part quarter. onetime If but them, cost in type I expect duplicate expected the the wouldn’t did them any provide No, is on of Yes. quarter. in any cost of the We didn’t to did not have to for

Operator

Thank Chris our question Research. And with you. next Longbow Dankert from comes

is line open. Your now

Chris Dankert

morning, guys. questions. Thanks my for taking Good

Mike Hilton

morning. Good

Chris Dankert

Any I I commentary guess, you mean, any -- nicely. right benefitting line just last now? semiconductor? a that comments the growing question off is semi building I growth segment here. guess on kind of investments bit How technology China’s was test in that in mentioned

Mike Hilton

say, largely in side, Well, China in has been helpful is us. -- I’d backend largely for investment the has which packaging the

interest to the say and necessarily as newer opportunities say, hasn’t opportunities there in as that, quarter relates on semiconductor additional inspection way lot very advanced the in inspections. But or far to for we investment. side, I’d it a but we’ve pretty the in for that’s growth. certainly so. for The are technology, very semi side side, leading necessarily us not dispense yet of us. advanced of government solid have dispense in support the is come additional As I’d seen fruition side, the the some last in

Chris Dankert

medical, single still had convention guess, range. on board I you’ve at Vention from digit a now. for Got organic you. looking said, you the And growth high year

hit Is on than thoughts did -- anything expected; better on on it just commentary cross-selling, fully any you much target? Just specifically? that Vention some

Mike Hilton

Yes.

that business we really a platform the overall we’re So, integrated organized cross-selling there. I’d of piece, that focused the critical into medical there’s the business. our gets Nordson to say, And we piece like and a too. on structure did proprietary us closest What business in device finished we components one a Vention and -- that that components our going say, drive that some includes think other and is piece Vention design development I’d And side, customers components where uplift a we prior expectations. very into structure meeting the forward. is the seeing our growth

would about We say, about integration, direction good feel I one about the good heading. the we one So, we good with -- capability feel the that’s that the that feel Nordson have. medical approach now we

Operator

And comes Liptak Thank question from next Walter you. with Seaport our Global.

open. Your is now line

Walter Liptak

Hi. have inventory not Greg acquisition the costs should adjust adjustments the or purchase your that non-GAAP, to one quarter or going guidance the the of Thanks. severance, on in I’ve be any the in just to non-GAAP, third about the were anything to you the and outlook. got on just so you’re EPS one same? prior follow-up GAAP, GAAP, clarify, then accounting want other so one talking questions, When non-GAAP

Greg Thaxton

Correct.

the acquisition We related. kind there not restructuring, material, be step-up any is it of be I one-time expect any when have will would those wouldn’t to more activities If those like of unknown. inventory timing hit for other

there restructuring. to But, in for guidance our past there the EPS We’ve related acquisition Vention charges. -- charges no we’re acquisition. anniversaried also So, the related are again, is

the consolidation EPS facility and expense amortization I charges mentioned, the incremental do numbers forward. in But, the associated the have with over guidance. have as going year, we prior asset don’t in the duplicate the intangible we that cost So,

Walter Liptak

$X that million? was And Okay.

Greg Thaxton

Right.

Walter Liptak

about was on something optimistic? I were were you market you you about How less your then, to think about. optimistic electronics kind projects conference last that Did going when during you talking full make the Okay. said that think, quarter Mike trends, you project guys about forward? the -- talking flat. quarter, I you pretty mentioned and a are pretty I’m the electronics of were funnel order call happen in orders about funnel And feeling in you that

Mike Hilton

the talk Yes. where feels I’d less particularly innovation a there’s huge challenge on step I would ongoing. is really the in. for still the And in third think, quarter, biggest project it the had whole clearly the some kind that we’re quarter, we are what see And saying frankly, year, third like And year. don’t there of last going I though step-up in quite dispense say, efforts we challenge and that’s side. here up. say, a

a at inspection Now, lot in some say that auto diverse the we’re fairly have end the of for of seeing we’ve more look part if like you electronics, a which good including us. markets. got And the side, growth been business, areas of strong

down all trying to comes third other frankly, year. last and the really it’s we’re year offset that very pressure significant a the step-up it So, quarter in quarter. quite a the with the to businesses And in on that’s whole challenge

Walter Liptak

Okay.

then, coatings the they’re adhesives is this the so decline. at tough digit it in and that maybe of on So, we’re where kind low growth. like sound to And way kind look Tech of in experiencing flat single environment there some comps, Advanced with

Mike Hilton

Yes.

digit see if of year, put expected I organically for think, single whole that you perspective the we sort said growth. the we to it in low

and mobile digit of called platform at side plus. of and two grown for auto I think, if sort electronics else single we that mid outside areas the you work everything the that spend look out, has

as So, it’s really us. for there those function drag less year the in customer electronics the associated opportunity with where a and less dispense innovations, so piece two largely is a particularly

the expect businesses, very to other a we year. So, solid have

Operator

final And with our from comes Davidson. Thank Matt D.A. you. Summerville question

is line open. now Your

Matt Summerville

in of maybe What follow-up driven quick would and percent cuts. been mobile year your fiscal ‘XX, to rough the last by you revenue Mike; have comment, auto last mentioned? expense A platform businesses

Mike Hilton

Yes.

segment, range side, auto on that of or coatings to the sort the just you have the look XX% if the could expense close mobile so. Advanced think And was piece I probably probably So, about XX% Tech piece been in at business. it’s the of

double decline this decline. that digit of sort will see will So, year both those of be

Matt Summerville

with on incremental then, looks to basis, look you margin, forecasting, look that year-over-year on revenue your decremental gigantic. the revenue And will, just a minimal sequentially outlook, respect you whether pretty if the you’re higher on

margin implications your your the that today maybe several the So, have Can on that? here plus guidance the math ATS. been is fiscal mobile in EPS is margin. you at When me having you implied understand just look piece work, again QXs, just help make close back posting obviously loop XX% that? than is less What’s I considerably this

Greg Thaxton

that this for suggest guess, results. of got base is we’ve carry the what for kind some Sonoscan so It’s non-cash incremental purchase going I the the got not acquisition charges Greg. Matt, Nordson accounting to base business I’d is those margins business, that’s burden the does. that is

business just the and that same side, upside, we’re down to then the like the impacting If decremental take have we the of margins. going kind of look at have on the model our you on base incremental kind

it’s historically. So, I don’t what know outsized typically we that I’d say from incurred

Operator

And Mike questions at time. I’m like turn remarks. call no I’d this further queue back to showing closing over the Hilton, for you. to in the Thank CEO any

Mike Hilton

our our going consistent you made objectives. And organic we strategic we’re call. for with have growth long-term continue that Thank that to and line, forward is with. business today’s And acquisitions growth of in you. some participating thank our our have acquisition we’ve grow. think we some increase The pleased core all We’ll sort opportunities I And bottom strong. to both

you. team staying focused So, global this again, thank for delivering and in Thank you future. into quarter the to our

Operator

the gentlemen, and concludes participating for This today’s Ladies in thank you conference. program.

You great day. may a Everyone, all have disconnect.

Nordson (NDSN) 22 May 182018 Q2 Earnings call transcript