NDSN - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Nordson Corporation's First Quarter Fiscal Year 2021 Conference Call. [Operator Instructions] I would now like to hand the conference over to Lara Mahoney. Thank you. Please go ahead.

Lara Mahoney

Thank you. morning. Good Mahoney, Investor Lara Communication. and President Vice is Relations of Corporate This here President President Executive our Sundaram and CEO; I'm Nagarajan, Kelley, and with and Joseph CFO. Vice XXXX, call welcome quarter first Tuesday, We our Nordson's conference to February year you results. XX, to XXXX report fiscal today,

both investor release conference Web our X. our can of live site, presentation www.nordson.com/investors. as until This slide available is be for as site our being available on Tuesday on find conference the will XX You we today's will call well and will days. webcast March call call broadcast replay that be Web refer our press to during there telephone a at There

of has references comparable non-GAAP be conference these provided metrics been call, to this During the the yesterday. GAAP to issued most press complete release metric financial will metrics in reconciliation made. A

to begin, statements Before may discussed we may statements as that certain please risks, and could of uncertainties, involve Slide presentation, made Commission the our this to actual future are number where we upon and a factors that X cause Nordson's note forward-looking that based results These filings during our Exchange the refer regarding of performance be other Securities company's in expectations. with differ. current call

XXXX two about our guidance. high-level commentary as about our well on the Joe and year review performance company to sales Moving cash discuss business balance first performance Naga over to the with full segments. turn conclude also agenda, will flow. X, total to quarter today's then Joe will will talk fiscal and Naga and the Slide enterprise sheet call as highlights. He the will for earnings

that, to happy hand your questions. X, I'll to over We will and to Naga. take then turn be the call Slide With

Sundaram Nagarajan

Nordson's fiscal first we joining XXXX Good conference was Nordson as XXXX. for fiscal quarter entered well-positioned call. Thank you morning, everyone.

diverse be this us This COVID-XX protocols to has operate consumer safety in continue to including have customers agile markets, to and who electronics, of of the medical, and we needs and a safely end environment. our Our set very measures industrial. non-durable, general responsive allowed ensured serve

invested what direct sales our portfolio. the we model makes in Nordson XXXX, technology position During remained innovative and strong,

several growth the we growth been our investing were aspects our strategy. resources of profitable best Using advancing employees NBS framework, opportunities long-term growth. in successful their Next in our Additionally, for have

bottom a tamper the as segment, remains combined gains, from Advancements delivered technology the macroeconomic this organic first Solution Technology that a on our test such components quarter sampling our noteworthy improved within both is benefiting packaging quarter. profits particular, achieved team lines And driven delivered Advanced are we as dynamic and has fiscal about sales 'XX first quarter While and markets. very are team margin growth lines. our environment, both the In solid Solutions end It They top comparisons. in year-over-year Industrial profit delivered improvements fiscal Precision and leverage, volume expansion non-durable XXXX manufacturing strong from also benefiting from industrial double-digit consumer fluid and trend. vaccine all and our medical customers sales for electronics our delivery. largely by proof biopharmaceutical are and XXX% shift efficiency to inspection in product to this growth, to causing grow. product mix, inspection, In line continue and application,

serving electronics and to order quarter encouraged line we entry the first medical broader end momentum the by starting we product see in were markets. the the As that progressed, are

results actions growth first, right in provide a financial on a for Joe I'll about perspective more few the moments. see pleased call expansion, XXXX speak I'll the We more segment to the over cost the structure detailed on delivered results. the size to within turn strategic business But throughout are the taken this our of desired several as particularly ATS quarter. profit the margin to to businesses modest delivered

Joseph P. Kelley

or additional year from from and that the fiscal increase XX% operating XX% first noteworthy the quarter XX% XXXX benefits were is driven an the the sales, favorable by region. since morning in totaled sales quarter XXXX. of year of million. year quarter adjusted strength non-durable million. mix you, see you for a markets, in good prior The was XXXX. to basis first Fluortek prior cost Slide X% quarter $XXX volume year. measures you This Naga, is the growth primarily and to the million, million prior vivaMOS reduction and quarter plus with of was was the improved XXX here profit consumer leverage, sales, quarter profit XXXX compared sales operating of related higher benefits by of organic On volume of from fiscal It of or SG&A increase point increase strength $XXX million, everyone. cost increase which million. million. EBITDA acquisitions. the combination was currency, year's particular is from the taken additional of $XXX The the in EBITDA decreased prior $XXX reduction organic in the and the to from XX% Asia structural gross in XX% million, is driven was gross quarter XX% than in in $XXX $XXX $XXX of profit moss see first Profit third fiscal #X, end or XX% quarterly rate benefits efforts the of sales $XXX sales industrial Gross highest and or prior level in as Thank million, $XX X% of that Operating over the margin It growth margin sales

in decreased increase Tax in expenses levels lower cost Looking in the driven expense at income reduced rates. year-over-year sales, currency to with $X XX% framework. NBS dollar. U.S Net interest reflective by tax by efficiencies weakening share. Next million associated increased quarter effective translation XX% and as X% million million prior a totaled a net the expense well largely XX% This debt is from expense, $X non-operating year borrowing of in rate with the the million, Other or increased the $X.XX levels losses growth and the associated growth an benefits or control driven as from $XX significant of or quarter per effective the measures quarter. of $XX

quarter first pre-pandemic the cost of included lower. and was a profitability Additionally, XXXX therefore structure

of packaging XXXX Now million, by strengthening was end of XX% driven an see X% lower This of serving well a of of currency decrease the in let's million euro well component the driven quarter. of a The year to $XX $XXX as the Technology quarter. X year dispense first quarter expense. growth nonwovens million adjusted Solutions lines quarter. product compared X%. for offset to sales is change efficiency increase product in prior profit X% turn and and encouraging benefits These was and mix, including by volume gains as contributed profit interventional The review included organic first Solution It particularly markets. organic reduced Operating benefits medical increased sales to to to in dispense of flexible approximately as first sales strong as markets. demand end performance. improved to fluid Precision demand acquisitions, increased and also period. to Industrial million volume X by XX% industrial product X% of electronic X% solutions volume travel mixture Slide to RMB increased compared was in leverage, was softness lower lines fluid inspection, $XXX operating increase and to industrial growth in sales prior year the prior organic applications. the The our approximately sales automotive lines, segment related and X% compared favorable test offset dispense $XX profit sales medical currency continued year-over-year segment fluid by of in X%. the Advanced the sales and the and volume This or during certain return SG&A and manufacturing were

basis XXXX from the increase benefits $XX over control cost taken of of XXX favorable in fiscal operating sales operating XX% sales. the XXXX. or of segment by First million for quarter This and XX% driven profit of prior or adjusted measures $XX sales million, was margin the realization year points mix of was

the turning and to based on and Page very balance strong net available the XX free We back $XXX debt ending income I'll of a capital trailing above on XX% the a Free a flow flow year cash now the with XXX%. conversion cash leverage working in quarter sheet rate, in prior million, flow Naga. the was ratio capacity. balance net X.Xx a quarter call favorably sheet free the Finally, Cash strong was million, months X. the to the borrowing million again with contributed liquidation significant to flow turn and and cash a net income at ended for quarter EBITDA. $XXX Higher quarter. cash $XXX increase totaled

Sundaram Nagarajan

Joe. you, Thank

Let's turn to X. Slide

team want to first the I thank for delivering strong quarter. a First, very

growth actively past around divisions world. business reviews and been I our processes. how Next is of that best the teams making, decision of in the deployment Over facility the Joe and engaged energy steady about in the work have excited virtual organizing to whether manufacturing or fuel in the very frame tours products NBS months, and are X I'm the prioritization the within data

and of on product filling identify discipline barrels was the sales lines of XXXX funnel product targeted seeing One Next with NBS growth also divestiture analysis the closed screws We element accounts. the from we February of are X tangible and line. as best opportunities successfully our the these to the strategic result strategic seen

this gained Our divest NBS based from decision data critical segmentation Next was to driven approach. the insights product on line

Systems take competitive technical the Board to and we Nordson's to this long-term and welcome will like end profitable in deliver did like remaining on and changes operational, We Lee we market of a the Board November, recent and experience lines of plastics our more enrich and right our At Executive brings which our grow Joe Motion Technology of differentiation Board in would Keithley, follow related moment regulatory our the retirements business, growth Becton, their deliver industrial as the NBS would Jennifer market. as we medical strategic I device of business PPS resources Directors. to Randy Group insights framework. time, experience Chief John M&A President and and throughout John focus that to division to time Parker to Vice in industry, Officer a President DeFord, on it leader and Company; By will attractive the Directors. the strong degree and our thank our the of Joe, objectives. will is growing the President perspective of like Board, not and the respected While recognize continue as Randy to banks. advantages Jenny to their Dickinson of Board. Hannifin John's growth appointments Nordson profitable Dr. continue of divesting Vice technical the this growth on believe we be product returns. will objectives. Parmentier, Carson, deploy end and for I Next of fit our important over to Lee many contributions and Jenny's this

are XX% our of Board Investor I The the remind whom Our of March of to X upcoming now you years. now tenure also morning Directors, average would is stands XX. at like X Virtual Day, diverse.

deployment more priorities financial and as long-term the goals. ongoing of will strategic as share our about NBS Next, well We

our product of and website drivers. visit also understanding use differentiated time markets our and give advantage, end to competitive We investors this will growth strong better portfolio Please register. to diversified a

the for on XX. Now Slide outlook

sales the the above XX-week to X% These geographic Trailing compared our same order increase very $XXX exit the an period product product the year-ago. and is first lines majority despite prior regions. continued quarter, screw indicators million, divestiture the barrel year-over-year suggest approximately was line. we fiscal year of and across levels As of positive entry backlog a of growth

sales fiscal be full XXXX, expect year to X% to For fiscal approximately we XXXX. year growth over X%

would revenue barrels be full approximately in from product X%. prior of X% screws forecasted headwind to sales year, divested and our growth line year the the Excluding the the X%

this efficiency forecasted is deliver of cost to the $X.XX Our actions XX% $X.XX growth forecasted in earnings guidance prior with to sales of taken combined midpoint and earnings around reflects diluted growth per year. strategic share. the compared to range The

of of business as in changing its a our variants, dynamic the and the diversity we it the our are Nordson deliver the remains challenges of world and are markets, conditions and backlog. to While frequently strength responds COVID-XX needs virus confident is to of well-positioned customers. end our the on environment

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

Operator

question with [Operator Instructions] from Boroditsky is Your first Saree Jefferies.

is line open. Your

Saree Boroditsky

taking questions. for Thanks my Hi.

below X% which growth implies despite guidance, is I year, easier remainder having of comparables. the quarter guess sales some slightly for the So around one

anything in So rates? improving could there's just makes if on you cautious that seeing you're talk more that about the you growth market

Sundaram Nagarajan

Joe, you want that? to take

Joseph P. Kelley

Yes.

the when we think our sales you of guidance, screw have of have the business. year, about divestiture that remainder barrel you So for to the consider the Saree, and

excluding barrel our when growth guidance. X% rate business, screw and So look divestiture to the suggests X% at the of a you it

Now, above I is year. approximately And screw which and we that our approximately QX rate backlog our QX will X% remind business, growth entering which QX, is to the the $XXX you comparable last X%. is was entered million, barrel over when excluding

look it's the year, QX. Chinese you color. bit little Year, New Year QX it year, mentioned this important whereas into further that QX that Chinese When in a to the fell into was Now particularly Asia. of timing prior falls New strong, understand We at in

So When XX%. that in XXs our the the bit in look that'll remainder range would margins of would be guidance, about mid 'XX the of it a the fiscal incremental a margin you headwind standpoint, suggest to little from an QX. be incremental at from

a those QX. that QX, 'XX, was in XXXX comparison it throughout the is margin about cost incremental we lower forward that a and the issues took year, cost easier taking than make year. XX% so when the more we couple think standpoint, structure in that you delivered from year and the started a that actions challenging. last in as QX So we comparisons is, One going there's out the throughout than QX much But

issue, the accrued. other comp year, been incentive had competent, tell And would comp, behaves incentive particularly QX, last the of I long-term SG&A reversal The is you which incentive naturally included in or variable. that a

should so incremental to that'll the historical -- sales to travel So direct the as that'll recover, be QX sorry, our is, particular in And invested margins. QX I'm be thing expense headwind and a continue levels. in near back then we to continue volumes to be other in closer as model come

QX dropping going XXs headwinds, is you saw I mid these has So incremental the tell about what the in down we XX, the just guidance to what from XX, forward, would to would margins suggest. is the

will Next the as we margins screw these headwinds and and divestiture being the continued offset so barrel And business, are which organization. the clearly the by benefits of NBS throughout improve deploy

Saree Boroditsky

announcements Thank about color. And then through That's of of just question, more there. Thanks. a rates any seen of your you Could yet? from high lot a talk expansion level And this great you. you been a lot could there's out of have how this benefit semiconductor you order flow capacity activity?

Sundaram Nagarajan

Yes. Saree, that's a great question.

things well the are two in of With devices, we get and is increases, you see is capacity semiconductor opportunities demand to for that you're going device going additions. as Nordson, the As talked area we for an about this find inspection, for particular strength What on us test and semiconductor advantages dispense company. as business. have Clearly, here. our the

yields, capacity dispense takes the help more really additions of will term, and capacity. using improve of product test test take a to But our as Now, well a some on are But test the of inspection them form product little spending lot inspection as it new going and accelerating time both you're inspection those customers, because of what lines, to bit time meet demand. is in shorter find bring to they lines. and the

well-positioned excited for very about great to the this. opportunity here. a win This company, So is

any to have questions, them. happy additional certainly you if answer So be we'll

Saree Boroditsky

I guess one then. more

space, CapEx EVs? in the about what renewed market. you. benefit that auto can you Nordson about end Could for increase talk how then facilities growth just the from in and seeing you're in and talked You Thank

Sundaram Nagarajan

Yes.

emerging On the this opportunity, the we’re the manufacturing. find emerging an greatest EV we -- market are an opportunities side, is clearly in where for us, battery

So different they you ways. are batteries, could think put many together in about

cells. combining you're is, ways the of One multiple

of That lot a way. one have we manufacturing So opportunity the in of is battery.

you our think second that is and inspection. about The test could

more benefits demand, to test as from and as well have components business here in IGBTs, battery Our an and opportunity are hence benefit in becoming inspection which definitely in components. like complex, increased both electronic power electronic we

Saree Boroditsky

my That's today. Thanks questions taking color. for great

Sundaram Nagarajan

Thank you.

Operator

Your from Davidson. D.A. question with next is Summerville Matt

open. is line Your

Matt Summerville

that to would baseball Maybe Naga, to being Thanks. in back with we're right a runway in you now? questions. and how A front analogy couple in just in say if inspection, business. inning T&I of test is use how in much you testing what were terms and you're seeing of performed, is line What much

Sundaram Nagarajan

inspection XXX% early T&I, innings. is

lot a that auto electronics. in see you So

innings. semiconductor, that to in early You're beginning some but clearly of see

Matt Summerville

the just you that think what Can some prior about then it you. we and In run year utilizing maybe one of the sort million high. I And Thank was forward? unusually above be expense. what quarter, $X seemed first on drove variance quarterly corporate fiscal rate that talk should going

Sundaram Nagarajan

Joe, take Hey, to you want that?

Joseph P. Kelley

increase when incentive mentioned look Yes. I from comp. is my you year-over-year, comments some of in as The

year, And tailwind year. it's was so that last headwind this a while a

basis, that's you on in And so between on corporate full When year-over-year some think from increase. that what million $XX a fluctuates the expense you depending performance. rate, run historically million, about it call annualized year the in and it from $XX an standpoint, drive of see a

Matt Summerville

you. Thank it. Got

Operator

is Your Wells Poliniak next with Fargo. from question Allison

Your line is open.

Allison Poliniak

morning. Good guys. Hi,

Sundaram Nagarajan

Good morning.

Allison Poliniak

to that are some market? that hearing market. happening going mind happening to specifically right Auto maybe project Any there? But lately. other to your comes end Just challenges of talked back plant any color closures sort the related given been know you now, of the are have you or electronics semi that I to delays just

Sundaram Nagarajan

of -- in in platform terms not we direct Yes, more delays. sort up line, the if which is We're sure, involved a Allison. of the seeing really in launches. setting the where production No, heard you're and not really of some you we are in line lot remember, have

So, expectations electronic pick specifically up But who not in not auto delays, we no, yield. capacity is we do from have to what customers looking seeing anticipate noticed. ramp any up by are increasing are

you growth. test And that inspection and so in see

Allison Poliniak

And That’s then a it. healthy Got range looking very obviously, helpful. you. leverage, at for just

As COVID you we're optimum going hopefully changes range forward how COVID, would Nordson of here? for the or as view sort this thoughts to of leverage getting challenges, an what any and out

Sundaram Nagarajan

Joe?

Joseph P. Kelley

Yes.

So, we leverage. ended at approximately X.Xx the quarter

we Xx be to continue that. ratios And think at We about you leverage, leverage very than be comfortable higher Xx comfortable. to when would

have to we look debt based we on and support We would opportunities, that. it take as at go at to structure up X.XXx. up be continue X.Xx closer capacity our to half range to M&A to to the looking leverage ratio But do to current and the look the Xx prioritize that

Allison Poliniak

Great. I'll Thank it pass you. along.

Operator

with Your next question Chris is from Longbow Research. Dankert

open. line Your is

Chris Dankert

guys. morning, good Hey,

Sundaram Nagarajan

Good morning, Chris.

Chris Dankert

typically is I guess, I good of and comments on IPS put here. IPS, number specifically, But in year guess, the Joe, really the level that guess build the XQ context, could the definitely margin we from a guidance incremental in margin Do quite impressive, flat, any of how that little performance? low is moves is forward XX% helpful. rest if around you watermark to bit from -- execution I appreciate here Just dig margin. repeatable? as XX% for that'd an be

Joseph P. Kelley

QX, very out. think throughout mix, this you what the up acceleration some makes of volumes leverage parts, Yes. favorable is year. in on. where that related some the acceleration XX%, cost had particularly we Perhaps question. It would we specifically as overrides here normal see and a this in on business But were of was they nice a there seasonality bit take going normal little did Part that was seasonality I to demand of our see going in

the you QX, will business in recall, structure. the going in you here further of improvement and QX the about there benefits to forward, But delivering cost when If divestiture think segment which was that margin screw cost action provide to that. barrel

references of about think here a margins in with there watermark very the should it high expand when So as the you going forward, this QX. off

Chris Dankert

on here, Got of it. I out the but too mix the was quarter? much break to press my guess, impact you willing And not luck to what are

Joseph P. Kelley

XX% we're XXXX. not haven't that we -- I willing back seen high very referenced was to a mean, Yes, in watermark, since you

coming And with so there. improvement we're of At in lower from mix pleased is business. the back a the lot profitability levels within the the it this range,

just we an mix. So if about has out, Next, to really on sales profitable improvement in that also the cost drive us you as take to our but and NBS opportunities, focused think allowed not most

And what see so that's you XX%. that in

Chris Dankert

it. it. Got Got

Sundaram Nagarajan

you Chris, leverage think really one would the of I more in is that good. add volume, the that if is about business this volume

And incrementals. volume so nice we pretty deliver us a growth strong helped that pretty had some

we're think here the you've us volume got that helping accelerated rates, it's that an bit. come is you're-- the quarters, well. to current to and as the margin So go a But volume down into is but recovery you with as play going important out I comfortable remember

Chris Dankert

and one Yes, you assumed fairly here thank that be be you're FX it. What FX in I guess And any for on benefit kind historically, appreciate is last Yes. swings for what can great. me. would significant Really in on color. comment Just when baking of guidance earnings? one the FX

Joseph P. Kelley

in FX proved quarter to than we more be originally had favorable Yes. the anticipated.

throughout so our exchange we the remainder are year. assuming forecast, maintained rates the And the of for current

a that moderate year-over-year basis It And had continue. in on or a so little bit starts that to QX. should benefit

Chris Dankert

dipping at rates. full to Correct? benefit X% still should down, year it not that a be But for but X% about current the

Joseph P. Kelley

correct. are You

Chris Dankert

Got it. much. Thanks so

Joseph P. Kelley

Yep.

Operator

Your with next Christopher is question Glynn Oppenheimer. from

open. is line Your

Christopher Glynn

you. morning, guys and Thank gals. Good

Sundaram Nagarajan

Good morning.

Christopher Glynn

you serve Was currently showing are curious, markets couple production questions on any that or or to any adhesive stitch assembly processes Wondering from if shifts centric fasteners? nice IPS.

Sundaram Nagarajan

a couple things. of Yes. Chris,

First adhesive, business the strong. is foremost, core and pretty adhesive

we that to to that the this a really automation see beginning we're also across pickup application of from. is some vehicles continue and of nice variety wide in Ongoing It's is an to battery areas electric in manufacturing. business. benefit One area beneficial

automate allowing adhesive about processes. dispensing manufacturing think our to their customers So

you consumer consumer particular a end see one electronics, a So and have some as new of market broad benefit would Not say, enough, set we any but opportunities. the there. Clearly, I other markets. wearables lot interestingly end of other,

our from adhesive has is strong about continue pretty big is think business, through benefit automation. you mainly it and really is depend it to -- lever, grown -- new applications if of that So we and

So the would tell on be two would battery, two a you number driver automation. and I big things

Christopher Glynn

relative up IPS that. two Okay. pulling your the for kind and where of growth wondering And of organic ATS within balance to the coupling the Thank you to the of started of outlook, you you organic year for do kind segments expect the year? see type

Sundaram Nagarajan

as What let market give we what -- -- Yes. we the have then thinking you some things One in expect this we’re end medical here. and how single-digit back in said there can of high eases we if business Joe surgeries rates me Yes, trend back, back to business, come our two back COVID about year. really growth half add is, get some rates. medical about elective expect the color actual as to you half know is our and the are the

driver that's for big one us. So

the half some see very business electronic orders you a that will up for growth second to us. our in in today is, begin as strong show second The driver

terms so will we by a help In which those is solid two component applications about have growth our is medical thing biopharm -- the talked in One primarily driven business. quarter. has not our ATS business, certainly fluid that

of a of all components. a quarters. -- about single that excited big use continue strength the -- today, in it's to We very expect out business It's really are but because we continued this the opportunity. This small is that

Christopher Glynn

Sounds great. Thanks.

the can line, in. last Is does on multiplier that the still impact drop earnings through? it top sort one, Xx The FX I it Just impact? sneak to the Xx of to if

Joseph P. Kelley

and the terms with the in as FX, structure bottom sales well FX dominated say our would so as costs well to Yes, our revenue. the cost of line, aligns, denominated quite Euro structure I GBP

that the a and So within weaken of our a when GBP. the little dollar IPS bit you the through. euro see does There is against business, flow margin expansion

Christopher Glynn

for color. Thanks the

Operator

with Andrew [Operator Your question next Instructions] is Berenberg. Buscaglia from

is open. line Your

Andrew Buscaglia

guys. morning, Good

Sundaram Nagarajan

Good morning.

Joseph P. Kelley

Good morning.

Andrew Buscaglia

just I to the on ATS. want touch

easier So, doesn't exclude like, overall snapback -- -- we some organic in doesn't FX, if of for really would really just given growth, thought that just to back laughing difficult much growth given to include turn half. see it assuming your a a it seem comps. high And ATS quite be you really isn't we're the in I guidance that

or X this being quite grow years Xx just in I'm say figure now. is Xx do What to you trying times you the conservative, grown. just to segment So out just hasn't ATS GDP can

you what is I or investors coming? can conservatism? growth -- that So this some is some give confidence guess Or gives this

Joseph P. Kelley

Yes, so I guess growth X% X%. to about forward, X% when of excluding you going X% it's and that the again, important rate divestiture, it's the to think

so suggest would X% X% in FX, that X% if sorry, you think And to about -- organic range. that

just guess So so we're … clearly, I

Sundaram Nagarajan

Right.

Joseph P. Kelley

I think, suggesting. we're that's places what components, … so the

Andrew Buscaglia

Well Right. …

Sundaram Nagarajan

Yes, go ahead, Andrew, sorry.

Andrew Buscaglia

No, no, add. you

Sundaram Nagarajan

declined because on that of ATS putting offset in one digits would do the surgery that back single -- add half. okay? damper Andrew, But in high COVID flat a related expect COVID primarily business, this business in Yes. is our COVID back eases medical component very COVID back to but growth as we by side, biopharm, to on strong I the to the things the declined as eases, our business is today get half,

So, that back. and are inspection is. applications, at expecting electronic side, really the is in we is -- medical we Test it is certainly, important with growing for high We ATS broadly what we're you precision for to come good in are baked the us. what Nordson to on place remember nicely

business. maybe business, are second in seeing on you our some is entry and half, inspection level here dispense forecasted the And electronic if continues starting that Test pretty set of we baked grow. outlook electronics our is about today. in So as side to think order it that the nice dispense we to to grow

you're what driven seeing, we're not markets, broad particular has product a of or guess, high high that level all specifically precision, precision driven end application think you for And other I is reliable If speeds. one of is about good automotive a, what by category, of really this category electronics our that. electronic smartphone finding at. electronics. good high demand is the at like That's that digital by business, across we're at are pretty dispense this dispense like acceleration things very What those great we

And place is NBS phone a that applications is don't It have seeing so, that matured. matured, require manufacturing are has what what looking, using we precision of that really like is that that needed. Next is new that here we is team looking we hence, mobile at has these in and level opportunities, clearly, and

focused team end this the looking a at you'll that growth, spectrum half on we've -- digits broad so new And see start to that looking opportunity. mid package, we're digital across markets. confident of focused of single around business back a the more and And semiconductor in got at this second more some really But gets year. of to the acceleration

Joseph P. Kelley

The … I other would thing

Andrew Buscaglia

Yes, go ahead.

Joseph P. Kelley

about about our it X%, rate growth forget in our don't to think call sales of, that XXXX only X% X%. X% dropped organic you When let's to

So as the significant as wasn't others. drop off from 'XX

So therefore bounce back significant not opportunity is others. the as as

Andrew Buscaglia

there. that …? pandemic growing have regional all in the guess, on those like XXXX. you in to Yes, are color -- there dampened half, other can just China, like guess easy I strong like was three China provide you're based tandem and the Yes, those little to you assuming exiting Is QX. as the would said It's with I over had regions, sound and you second guess, year But going all I all U.S., pretty Europe a sounded exiting comps be and I think, you a be good -- expected, presumably, lifting. any regional,

Sundaram Nagarajan

low to the Asia you've Andrew, starting what already first if it add was think you captured right tell is to flat we I change. what but is of expect anything, slightly would now, strong I covered than wouldn't do kind more -- is organically, today, quarter. in But Europe is anything you've strengthen, that U.S that I there.

Andrew Buscaglia

guys. Thanks, right. All Okay.

Operator

Your final Seaport. question with Liptak is from Walter

Your open. line is

Walter Liptak

Hi. Good morning, guys.

Sundaram Nagarajan

morning. Good

Joseph P. Kelley

morning. Good

Walter Liptak

ask from possible benefited I wanted Is to savings NBS the from Next, you elaborate cost to about maybe benefits the can it other? the got you bit that little one this versus the about NBS quarter a Next? and that differentiate

Joseph P. Kelley

it actions, about back think driven we No, I that think points, NBS because all growth you framework. say the cost cost our referenced, and was I strategic when not Next savings when you mean, at within it's really step discipline by several the our

stayed on our we to capitalize focus that. weren't And there And took growth the I say, is profitability where footprint, or in there. opportunities, opportunities, cost improve those then the divestiture, in best right on where the that we growth that of our the would barrel and so size, we so best as we screw the invested action example opportunities, could

reduction So improvement Walt, discipline actions, referenced the sales reference we of at you when IPS, all Next of tell NBS the when -- would cost margin that mix rooted refer the growth heart we from benefiting I strategic in structure the within is expansion it, framework.

XX%, And when look say lot NBS we benefit. so it's really, a I the it when that's -- delivering the of incremental we margins look at at Next of

Walter Liptak

Okay.

way. it Let me try this

these Nordson? benefits, at you about remainder look SG&A into is for of and you us with so sales help costs we cost back level of your As the $X overall of some the the think like can or coming can there year, so percentage

Joseph P. Kelley

Yes.

annualized guess, give little several $X I we some was commentary let incremental had savings, were one million. a of So, just costs. on cost specifically color that them referenced actions $XX year million, Last me

And at throughout started points different XXXX. some of those

would the in benefit full, are I those hitting so rate at QX. And run here say,

will the year a of that no expense cost forward. on year-over-year be you million not that we're benefiting as did travel. So about basis of have see side, that the maintained for should T&E $X also structure pandemic you going I lower QX tell last cost on

to as X T&E about But we don't $X that a on about all run away. the as million it's at rate, another this you come come so think think million starts QX. benefited right back, in from it that forward I potential back there's And going

and that -- other thing, the is I typically SG&A heavy referenced QX So is our quarter.

If reasons. and last prior you look benefit year, year for different the employee

trend that go should so as And throughout XXXX. forward we continue

Walter Liptak

Okay.

last there orders there or came in revenue second second is these will there year -- could be for that mentioned through just packaging. thanks the more a Was half? if me you little come more a that vaccine shift color. one last remarks, as quarter And size that? Okay, the bit that I orders may the about for talk in that just about, in wonder benefit is or you then sales prepared or

Sundaram Nagarajan

Walt. the in that have in Sure. vaccines show is particular plastic This the in single and strong quarter. on the some saw starting are biopharm, for is now. This the a of years, used to case marketplace we for this been use And we which components, manufacture up one of as growth well. growth pretty strong us It's in and really driver working right number a

when because quarters to out. out are continue is down being the sort to the a this to revenue able And have of reason we customers the mainly further a even growth expect biggest flat driver. compared biopharm growth in our XX% maybe medical and of We

single biopharm are steps. And plastic it critical used that of use is our manufacturing more components so in

Walter Liptak

right. All Thank it. you. got Okay,

Operator

We questions. for to I have will remarks. the turn closing no presenters call further back

Sundaram Nagarajan

Investor you. forward March and a on you further Thank your talking attention look We day. you our Day to during for Have time call. on XX. Thank to Virtual today's great

Operator

concludes This conference. today’s

disconnect. now You may

Nordson (NDSN) 23 Feb 212021 Q1 Earnings call transcript