NDSN - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Nordson Corporation Webcast for First Quarter Fiscal Year 2019 Conference Call. [Operator Instructions].

As a reminder, this call will be recorded. I would now like to introduce your host for today's conference, Lara Mahoney. Please go ahead.

Lara Mahoney

you. Thank morning. Good Mahoney, Relations. Lara of Communications Corporate This Vice Investor and is President I'm and our Thaxton, Hilton, here Mike with President President CFO. Executive and CEO; Vice Greg and XX, conference We to results. year call XXXX, quarter to today, XXXX welcome first report our Thursday, you fiscal Nordson's February

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

You will need to number XXX-XXXX. reference ID

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

Michael Hilton

quarter volume. segment Therefore, quarter the lower business, and quarter-to-quarter. by administrative selling in the morning, we XXXX's organic was Nordson's typical seasonal not Call. growth. our where support significantly year line first achieved Thank performance, impacted, this pattern margins with Fiscal from were for of and expectations challenging the growth entered We First performance Quarter knowing expected, the Conference quarter Good for sales facing against expenses consistent to of XXXX XXXX's you we comparison first outstanding our a sales sequential quarter sales XX%. as were Spending quarterly operating vary joining in everyone. first with did

us historic our improve with our to announced XXXX and margin quarter in We fiscal expect seasonality, each growth to sales achieve sales guidance. previously line allowing

various and shared consolidation on U.S. initiatives, our operations our of into center we further improvement service the facility within North the quarter, Europe American including integration delivered and continuous During adhesive

we execute to in I'll by more provide moments. detailed quarter, for But in few call we I'll the of $XXX perspective during million repurchase addition, quarter. Greg our $XX guidance continued the about 'XX investing and to strategy to dividends. capital In over more turn annual a the distributed shares, million allocation on fiscal XXX,XXX the our first, speak approximately

Gregory Thaxton

you, everyone. Thank morning Mike, good to and

First effects the year's as a quarter quarter. included a organic compared related year's change sales decrease acquisitions translation volume, to X% and decreased sales X% growth of of XX% of X% compared currency the to quarter. prior to decrease first related year of the the unfavorable in prior effect of to first This first

months XXXX acquisition quarter's Medical growth the First of Devices Clada XXXX fiscal and acquisitive includes Sonoscan. two of of the acquisition fiscal

was quarter year an up As quarter. performance prior in we line Mike noted, exceptional largely our as against were expectations our with first first

did deliver decreased segment, as approximately the translation effects decrease Within a of year. compared X% of organic of approximately related inclusive unfavorable year's decrease the to approximately Dispensing lines. We Systems in prior in of volume to product and Adhesive a the quarter, X% the compared currency prior sales to most X% growth first organic

lines was However, depending offset sales by dollar patterns can order larger this product line performance new to be tend segment's sales, be where upon system and OEM upgrades. customer nonwoven sporadic line or

product sales effects of increased management translation to the approximately fluid year, with increase organic the current and within volume growth product in end of the prior dispensing of Double-digit comparison of product decrease decrease decrease within by sales the year to of related electronic solid approximately year's and lines as was volume and of to acquisitions, Advanced currency related first volume of prior to of lines growth Industrial XX%. a we and the effect approximately In difficult organic of inclusive first approximately X% of largely unfavorable inspection markets. inclusive a XX% XX%, for first prior the offset test X% approximately decrease compared within first XX% first the currency to as X% Systems approximately quarter year. decreased noted, segment associated prior compared comparisons quarter, in unfavorable quarter, organic an year year's Technology compared segment, a against compared X% to up approximately the lines sales decreased related quarter Systems prior very challenging year. the As Coating translation to the the were effects a the where

impact automotive lines associated within end for with largest cold to system lumpy larger-dollar this product sales, demand demand the And like be product the markets compared segment. other had material as for Softer lines can year. prior

income Moving in down margin operating for XX% gross was with total the company statement, Operating quarter. profit $XX the margin XX%. the was reported of million,

consolidation costs during adhesive initiative $X duplicate we not fiscal expect We facility we the in of be for that million duplicate material the costs quarter. the the Regarding about of incurred approximately to previous year. have remainder do talked quarters,

$X.X adhesive addition, the incurred consolidation this most cost facility of restructuring charges quarter, of initiative. related with during In million we approximately to the

earlier, for each of volume operating margin the sales lower noted segments the in impacted quarter. by Mike was As negatively

These in the significant income out We total company generate for $XX performance was this per of share GAAP incremental leverage. include quarter nonrecurring expect of share with and charges related year's per were a $X.XX where items. share. onetime margin to earnings historical line restructuring charges sales $X.XX, patterns, On diluted inclusive net basis, play of seasonal approximately onetime per items to million, $X.XX

was the typical the flow per reform tax the quarter $X $X.X first million primarily related $XX for million duplicate of Additionally, the during Free adhesive is ratio million dividends a U.S. XX% of of quarter. restructuring or EBITDA with net charges $XXX was facility and of to approximately This consolidation. charge income. million net cash or our quarter, of conversion $X.XX cash XX% federal approximately costs before quarter tax income share associated sales, discrete million legislation. $X the first delivered We or of recognized in diluted inclusive of

flow Our net approximately dividends EBITDA months' Mike trailing perspective, before press to debt for income exhibits EBITDA release maintained well adjusted adequate of free net priorities. sheet now to financial a XX few as before From adjusted first we at comments. for as cash back was where capacity balance includes flow EBITDA. end cash turn dividends the reconciling a free strategic X.Xx and to I'll the quarter, EBITDA call over closing the and

Michael Hilton

you, Thank Greg.

our earlier, was first typically line with where our sales As softest. in I mentioned the are expectations, quarter

the an to is generally spending quarter-to-quarter, in Our first increase compensation due but we typically see quarter consistent from increases.

of committed year guidance sales we of unfavorable fiscal volumes annual remain X% sequentially growth organic progresses, X%. for and 'XX. to the our We expect to currency sales increase -- guidance forecasted to as We've effects X%

to growth to and and monitor fiscal tiering to also team end enhancement emerging and product previously execute the continue we achieving conversations our give our that support announced over improvements the our basis macroeconomic us markets, of trade performance. target strength our ongoing on committed new operating customer operational The markets remains discussions, are our XXX in target. points the XXXX and encouraging. XXX ability While confidence initiatives challenges our diverse to of innovation, The EBITDA across applications margin

and we your With As support. our shareholders employees customers, continued always, take that, and thank to pause your for you questions.

Operator

from comes our Poliniak [Operator Instructions]. Fargo. with Allison Wells And question first

Allison Poliniak

Dispensing. Adhesive to back I to get want just

sense? it -- about seasonality? all it does it You like volatility bigger Is some and talked with the there's project Is just Any Or trade your out concerns there. there? something still macro thoughts?

Michael Hilton

core that vary patterns year-to-year. can of not part it's typical, even just Yes. seasonality, Particularly, larger maybe I'd think you order but just down, or to product packaging orders lumpy. you say and within of up that happened our nonwovens tends systems when when assembly, be Adhesives look polymer it, be at were business, our businesses and to one that and our our

to seasonality, sort wouldn't I I a just for say wouldn't it's patterns our and So of macroeconomic order it's say related necessarily function of larger it's any trend. customers,

Allison Poliniak

Okay, great. or tough Obviously, particularly really kind the then piece a similarly of electronics. comparison. And with technology

how similar year projects, level think year still relative progresses, you there? of we to the -- in about As are a in last terms your conversations

Michael Hilton

in whether discussions. getting good the where have you lot in projects a and customers the that's electronics have growth our things the the on strong know, and look that X, the outside business really development both medical as a our into kind electronics a those we the clear the first year. in very nice to frame make yet projects not if seeing had Yes, like. customers talked of year where those month see strong that's in of side the turn segment, in point what still we're looks our we swing quarter within traditional past, piece, We're It's real business. thing EFD things. this the decisions. business we'll quarter area. has And The we've very, ongoing you as factor we opportunities this time next with been or of But mobile like been electronics say, I'd

we that expect continue We the throughout go to year. as

Operator

And Robinson. Brady our comes next question Charlie with from SunTrust

Charles Brady

Can [Indiscernible] medical was quarter? how the quantify point medical. on you strong last on that in

Michael Hilton

in business Well, a on bit a long-term that it's the to high low digit, we and single did more double and grow expected that little it -- basis, digits, quarter.

Charles Brady

going maybe due like look that as on good. disclose kind flipped the don't down you're tough patterns XX% a commentary seeing just orders side. really and X% lot of give our back-of-the-envelope stuff. of color? current lumpiness then that comp. sort anything quarter, you know orders on nonwoven into or -- But the but on And Okay, the were -- any of if I looks the I any is I the a longer, it -- I about guess, of as guys particularly to the the you things in order ATS suspect Can around a quarter just what was calc,

Michael Hilton

single-digit rates. Yes. increases. for saw most year-on-year of say we in I order of low Overall, kind the businesses, would sort probably,

Our but going in the backlog quarter. to that's is delivered up is get not all X%,

and So are by generally encouraged we're I'd being what see guidance with that we overall the provided. consistent we say

be Industrial overall, the some overall that like we the be could but line know, also so As what nonwovens, that's don't year. see in anything think Coatings and should we with businesses our for you can quarter-to-quarter. inconsistent only top lumpy, in -- not things the But orders vary system of

Charles Brady

more just one get me. then from And to Okay.

what weaker. we're into sales? Or function On going is just commented automotive plants you just seeing American in that in the auto overall themselves? a Is bit a the of of broader the terms -- North it little market CapEx sector about being

Michael Hilton

in would I seeing you're significant America I'd world, seen say not even side. growth the certainly, you've say, a auto is Well, on kind the of what North But around slowdown.

it years. bit of last China particular may think couple have been is a in I little flatter probably over the than

sort a a it's -- necessarily global global of a sort say not story. I'd investment story, So of auto a

Operator

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

Christopher Dankert

that to the reiterated at assumes double-digit to you in the ATS kind rest the growth the Could guide, walk that of guide organically ATS. Looking what through Some new automotive? get us kind you drivers applications, through guys back gives Kind you confidence today. what of year. confidence? you of really in of What key of kind of Just gives are the through kind walk of maybe, in there?

Michael Hilton

you is at we general that electronics, nicely, the total if is segments, business, electronics expect I compared I just growing industry's Well, to a in you though the or the even segment, to comment made piece which And the and of even Within well. that growing electronics market is about grow. comments the portion nicely hit up as test saw growing continue A nonelectronic. previously mobile that which and is our very half to the the auto think just if inspection made substantially. about -- nicely. Greg over now broader was look is medical, the business that significant piece segment And autos, around electronics auto

effort some opportunities in in medical. in from seeing come good and electronics we're the diversification our general, that broader segment, diversification into our So the

pace we So here. good the feel that see pretty business of about we

but is mobile are I where time just year. as said of this that's clear, we As piece to on the work of not Allison, at typically development sort the the

Christopher Dankert

that I the target quarter, the And of headwinds helpful. ADS is to That's XX% chunk some we it. saw within the the guess, Got given margin that first it? in to still the of Dispensing, it. Got Adhesive get year for

Michael Hilton

about commit and last think didn't business we because ultimately, think XX%. I I to ramp there really as talking improve up the side. year and get think, I to complete we'd restructuring needed the said We we we get can in this then we efforts were polymer the efficiency that quarter, the

there that to So this year. get I I'm our goal get going think ultimately, to there. not that's committing we're

Operator

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

Matt Summerville

maybe a innovation your question an have -- not 'XX this at towards remarks. do But line in just sight heard a line versus mobile Is of at think little more point more So all be of on an what's -- what year? it X% prepared if guide an you will I a have you of to do fiscal on-year of in in a sight for the or fiscal context bit Mike, off-year, 'XX? put or can guess, to you of on-year off-year will? whether X% of the I you was sort of organic embedded more more the in an And as

Michael Hilton

Yes.

like In would sort this in the you the of recall XG. mobile what and if So talked things probably more planned that's what of a say, driver looking is the what not a last would our so mind, for, next are talked implementation associated significant be at some I broader with as about we XG. in business, people year. till about conversations but we year, of And next see we significant step-up something XG won't that kind

and of of and And As successful working ones capture and that's We inspection across our on. across pretty they're far market. we've are parts don't continue mass on, going diversify have are the of sight tiering semi that next And working been other as test there why the customers about line well. clear auto into things piece to in opportunities. a other electronics mobile business generally as of some of to implement to of for which number the we production sort they're a the across set innovations

this go starting as going production. to There's our say it's degree I'd it's out, see mass of really year. what yet what's customers come of to clear not So clear terms on yet in going innovation but announcements not to are to

Matt Summerville

to follow-up. at demand a Across local or have Asia any out there? general just particularly uncertainty point, China in the as delays seen this either businesses decisions, or in your in just due capacitization And deferrals of you customer to due weak trade

Michael Hilton

with significantly say haven't would some big say recent trade the haven't there how on I I'd mind say order concern anything we encouraging. trade, out. top a We'll concern a say But say it's the with of if and lot the that regard That of canceled, discussions point, there not on cancellations see China. of -- I'd particularly our but seen we customer or for decisions. is is like most news And both in to would is plays significant -- that. this that's that. any that U.S. having I'd there's impact seen customers. kind said, anything a I China But to

Matt Summerville

follow-up Got medical. it. And on then a just

just it about growing some on to provide that? would expect. Is market share indicated organically answering you expanding you that, that that? You Is you sort granularity Can business business what question of above that related? otherwise another was normally internationally? talk what's Can it driving perhaps more

Michael Hilton

of It's that of what kind of in new is out business, heart all customers. around of are new innovation. which product drives our with a lot products our really coming There is Yes. introductions of the concert

acquisitions us our we've of And pipeline the so of particularly cannula to number that more complete businesses, support we've new support and as continued expanded -- of of across the it's significant that more look catheter And and customers which catheter launches growth, seeing businesses, products a have portfolio, they them. customer to the the innovation businesses, to the is we're most made [indiscernible] a giving there. we've to made, access

So we're that. benefit seeing the certainly of

to being or that product it's customers, able is opportunity. it's more say in and broadening of advantage around around innovation and portfolio take I'd So

Operator

next from question Christopher with Glynn our Oppenheimer. comes And

Christopher Glynn

to diversification coatings see on It's reading actually. I electronics. nice have through that the did a question

talking In launches about the automotive new industry in a exposure XXXX, of terms there, production. independent slower after are companies some platform reviving the of

automotive coatings driver wondering if what that's Just to of a degree concur? you And your business?

Michael Hilton

I orders know translated orders. of say systems it's fair point translated I point, But Yes. that to there's this into now. bit a discussion say that. this not at significant on hasn't into would I'd

mind, they're a of coatings quarter, to where Just in of frame at time end a keep of finalizing their all sort particularly lot the is January, plans. capital customers, for this the first

atypical not anything they for see January not year yet us finalize calendar typically to and it's their the because plans So end of launched so. are at or

Christopher Glynn

Okay. play to you does But -- that serve what how those markets?

Michael Hilton

Yes.

Christopher Glynn

-- well. And view capture the the the line first was uniformly in then great. Okay, your seasonal quarterly didn't with was that on you commented were the sell-side But year. obviously, deleverage of quite all overall, models our -- quarter

considerations split all second from point the and didn't change any half? the annual just quarter quarter second on if And first that given we how quarterly the fine manage guidance? wisdom any that of So quite full well kind half how with view the to bridges on wondering year, we of really to the first the

Michael Hilton

Yes, a would say -- I couple of things. that just

comment of -- First to typically costs administrative we a sort the I'll tremendously the get that But of the and knowing top that sort sales year. think in is line minute. vary thing through one think thing of to one have don't business, the seasonal just a throughout I our all,

the we that unfortunately, that going plays maybe see that's much, little at which it's out. -- up. incremental on it million higher varies look end are a ultimately is typically in margins But the we maybe So of the volumes obviously, doesn't few how quarter-to-quarter, the incremental And year vary a -- down, depending volume the well. going as great and when if it that year

say So thing I on. to focus that's in one would

year first we the would see half be the of the in first year quarter would is to the of to the the on that we in stronger growth expect Obviously, see first would second than be half but seasonal than we half. Now half. the top line, down, expect second stronger

earlier, as go the in up not backlog, Our to said X%, quarter. that's out I of all going is but

obviously, we to but second more improvement half the expect quarter So see the in in of improvement year. second the

Operator

next Gabelli comes Matt our Trusz from question with And Research.

Matthew Trusz

can new new or hardware that to about we're a with within customer equipment? Nordson changes you for there's factor little feature, get a about thinking So model requires mobile equipment? for So a updates, phone of require Nordson the iterative exposure, waterproofing granular when But form does need change example, like new or a new what much fundamental gear. more XG, type really trigger

Michael Hilton

the think change you it, about that things if it's So general. drive in

more it something in be waterproofing benefit it or So could type other changes, technology. fall we process the could or squeezes which to a that could the the into shape phone, it be everything process reason factor so that as within expect antennas recognition could a be thinner sensing don't battery there, to expanding It really the have change. in making like But change it I earlier, been With as -- XXXX. else. like of significant we That's that features, that of things the be until until is leave size, that, you're going point space. be and it'll a to would result Or said past. XG, any less thumbprint a

way could in phones. our including all So process of things, manufacture it customers the the be those changes

a of working So variety we that on things there. different have we're

Gregory Thaxton

its integrated level module at equipment. the benefit of the into into see our we with assembly to a dispensing those get these new when it often the this finding inspection is, equipment the we're module suppliers, then either is added I'd working oftentimes, at with gets feature devices, way get working level And -- Matt, we What the that device. we where Greg. add our or

Michael Hilton

on I continue in battery, electric to across That whether whether it's to different we're diversify so for side, space. car in trying one the semi it's said, applications, on we things to as earlier, the auto the mobile whether do, try as phone not side, electric it's mentioned of dependent batteries space. there We're diversify, the

Matthew Trusz

general it answer ago. interesting. and customers' characterize any would've then That's your business of wondering, of be And level your today very quarters your sense overall, would and been whether you how confidence, just confidence two than different would your

Michael Hilton

say Yes. I would consistent. it's pretty

last year year. I to global expected talked think growth less a growth as we than this we last quarter, global little be

we're And still consistent. say that is so seeing I'd

But get there. earlier So one particularly I I'd trade, a that's about If some significant then say with the resolved it was somebody to our And globally in implications. play war, that where there the the a year, manner, that's could I we our think would asked more was there. thought is think trade say what be mean, today issues, trade see that's but wild expectations. of sort as well, uptick China, out have card out If last at with tail well. we we sort it of end macro the positive view growth going slower. I of environment some I'd see with of

Operator

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

Walter Liptak

basis. little market's what I led And would down. sectors wanted kind of comps a easier you if that visibility, bit -- geographic Japan. Japan to to on if And the year. because try I you ask expectation can one throughout talk The think on just -- you a the bit could as about the wonder little I go the decline be get in the

Michael Hilton

Yes.

electronics in and it was of of the look largely came supplier as Japanese orders as the quarter portfolio first year-over-year that at that you that And through it that be opportunities. across it's to 'XX of -- significant well although the products got in, mobile comparisons, all happened If also quarter for really some end we Japan, Walt, -- the the in other were 'XX. a those customers fourth

we than in the -- year. in really to what's that last year-over-year. as explains the expect on first going I'd compared Japan is more And -- in that's say quarter Japan Japan So typical

more I read other that what So than won't into just now. anything said

still beginning of than Europe our this year have slower Japan expect the expectation. year that to at but we think and we said I and did year, that's the they grow last

Walter Liptak

Okay.

I Those just auto was bit wonder thoughts about throughout like what was systems in of European But I doing the good. slowing, kind the we've I Europe. stay Europe? Okay, the Germany. that difficult next And thing mean, think, in the of year. And visibility a Europe. expectations. the same some in more what question, the And on comps, heard little businesses it's are your yes,

Michael Hilton

just growth kind Yes. impact year. slower have be if the with I would see of you slower say you lines it's it don't particular growth economy for to big think, in mean, a see We'll any talked going of in I We it it a year. has But a the I Brexit us. up terms see in France, to impact. it affecting about economies. expect nonwovens. We in earlier general, it's Germany,

on of that impact. the see that's some so certainly, OEMs located One comes nonwovens had big the back you Europe, impact depending to be throughout level could some there year. project happens in how But

Walter Liptak

Okay.

So does the slowdown operating improvement? low international the about range the doing into provide the are end? for some of these kind take self-help when margin assumptions think of of that considering that to of And this margin that we you're go get range? high What the issues, it factors what what improvement, end and to year that

Michael Hilton

all, about Yes. part efforts Well, business. we've of had of our first Adhesives underway I polymer in we restructuring talked the the think

year. So as start through and see this quarter, we to through in essentially go the some we're that we'll improvement

up shared setting some U.S. also our the -- our that'll service activity service in investment center in go away. customer We had

goes benefits see from that and So away some projects. there's a we'll those -- expense some both finishing --

leverage we'll activities Nordson things about, of from driving we the Business volume System and And improvement continuous that will come do levels number help have the in to a we that. through overall on talked the we're our the volume at that get expect that have cost side. we think then on We

factors the major for. the those that would drive improvement looking we're that So are margin

Gregory Thaxton

singles to Greg. no to see add going is initiative the One up going that's this kind of most that this of big aspect to characterize of this Walt, say one doubles generate be a lot -- of way bulk years, across we is it. our it's deliver there's of as I'd and this that improvement. to It's

Walter Liptak

that Okay. come within And the of revenue -- swing it's number but are these of the where in factor -- get sounds is it here to leverage like control, the volume that [indiscernible]? your things does leverage off a

Michael Hilton

mean incremental pretty I high. are know margins you our

-- X% So about, even to kind talked growth that the leverage X% that. the there's pretty of sort we've with of on good targets

So you're correct.

Gregory Thaxton

But hand-in-hand changes believe with of we top efficient some those made we comments grow because go The is the we've we're here point as of some in do Mike way to of line, structural a going these made. that volume. that that more kind of it

Operator

next question with Jason Lakes Great Rodgers Review. comes our And from

Jason Rodgers

year possibly the segment, slower robust that to you to some you more talk you of just can full the detail X% see guidance. mobile to the growth areas to by looking some if a that then guidance wondering that year reach ATS bit could X%, until on Does in your growth orders Just for system segment and in growth some regionally, given assume full next medical little large that growth of side year about going reach the nonwovens, the that that addition guidance. in then get growth expectations not to segment your more may these you're to realize And I'm ADS? need at levels looking in

Michael Hilton

Yes.

XXX% So and feel put what structure advantage that we on we've enough we have of the product necessarily we're to lines. we there. count you're new grow new segments, with one, products of our confident doing markets grow, But a them and probably I XX different to things going look going And to of of don't we would say growth of them any as businesses, those tiering all be year, each our is couple XXX% generate within to X we're at expect able XX of have year; two, in applications growing. not through the do the kind in various this to things: drivers of that with innovation, that and across taking that we out segments

year any all grow. we all expect think would that but I we lines, segments, But to honestly, of typical product So have. that's

Jason Rodgers

in Okay. repurchase, get And stepped repurchases. wanted your quarter. I future up the to at that on thoughts share looking the

Michael Hilton

And Well, business. sort done be It's to organic Well, in repurchase. appropriate of on as haven't our priorities the really the me repurchase. to portfolio It's to let allocation changed. acquisitions. the high. Yes. opportunistic the And opportunistic start particular, done to share add past continue look quarter growth to around of support that's string. this what being with we've more share our in to It's dividend the capital it's our

Greg priorities. that never as working. some that to going end are we're pipeline feel So additional to to a things of those acquire got like, you day, we We've still come we've that's when capacity mentioned, can tell But And businesses. our market. got

these for So allocate greatest to capital we priorities benefit to maintain the shareholders. the and our the company appropriately

Gregory Thaxton

And terms of is dilutive part of add of that I'd offset strategy baseline benefit effect part buyback, plans. of that our share in to the

we've accomplish been with able So to activity. this that

Operator

comes [Operator Markets. Jeff Hammond Instructions]. next question And with from our KeyBanc Capital

Jeffrey Hammond

and confidence just coating some maybe saw the you're in lumpiness pieces I I you of through So terms nonwovens guess about of just as coatings. wanted give the back kind what in the you lumpiness, order that where areas activity guess, move talk the you'll to then get non you the year? come good to back of seeing Can you --

Michael Hilton

can't What it's orders. I while. when would been We a for to going going customers softer we've product I side, lines the just around auto got place activities Yes. businesses say, and all would the predict those on are globe. of necessarily say is across

up necessarily in big we're on so not counting way. to a And step that

little come and the comes What's We just kind normal to also projects. a well. different the applications large timing sure -- shorter business in it's softer. have not projects run lines is, But our our installed platforms significant things base me betting of X hard because lot we're one years, parts going consumables delivery-type this the from also I'm strong year. those here this to on we've as lot I as of I'd through that product or over markets rate and have we've years be important in we'll a mentioned that place of on earlier, what's add smaller and say, nonwovens, there to into and got to last tend had they -- the as on the And X really some and is continue different year. important a let opportunities we

we've up, and a far. few others so expect to some We pick highlighted

Jeffrey Hammond

then And cadence the of back on just question. great. Okay, kind

we kind of head of falls find do of you of XQ, into kind XQ growth kind year As full the at into the least range guidance?

Michael Hilton

Yes.

said what first sequentially, half stronger improvement up be So we second to pick second we've some to quarter. than and and the half the in is for things expect, the

improvement quarter. positive as -- second we some with up translate So yes, we backlog the that But I commented into we X%, in the necessarily quarter. earlier, as our to expect expect don't

Operator

I And further turn for call to like would conclude to session. now remarks. any question-and-answer that the today's does Hilton Mike back

Michael Hilton

who global thank say you to Nordson. to I'd continuing to our continue for our of just have and all those participated support to team And customers. you today delight thank

Operator

program. This conference. you Ladies in conclude today's for does and gentlemen, participating thank today's

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

Nordson (NDSN) 21 Feb 192019 Q1 Earnings call transcript