Business News

Nordson Corporation Reports Record Second Quarter Sales, Operating Profit and Earnings Per Share

Thursday 22. May 2008 - - Sales Grow 22 Percent to $294 Million - Operating Profit Increases 58 Percent to $54 Million - Diluted Earnings per Share Increase 59 Percent to $0.97

Nordson Corporation (NASDAQ:NDSN) today reported record second quarter sales, operating profit and diluted earnings per share. For the quarter ending April 30, 2008, sales reached $294 million, a 22 percent increase over sales in the same period a year ago. Organic volume increased 9 percent, the first year effect of acquisitions added 6 percent, and the favorable effects of currency translation added 7 percent. Operating profit for the quarter improved to $54 million, a 58 percent increase over the same period a year ago. Second quarter diluted earnings per share were $0.97, an increase of 59 percent over the same period a year ago.

“This was another outstanding quarter for Nordson, where demand for our products and services grew in all segments and each geographic region,” said Chief Executive Officer Edward P. Campbell. “Our continuing record performance, despite the challenges in the U.S. economy, reflects the strength of our products and global market positions, and the benefits of the diversity in the many end markets we serve.”

Segment & Regional Results

All segments contributed solid sales growth in the quarter, led by Advanced Technology, which grew by 26 percent over the previous year’s second quarter. Sales increased 23 percent in the Adhesive Dispensing segment, and 10 percent in the Industrial Coating and Automotive segment. “The excellent performance in the quarter was driven by double-digit revenue growth in every segment. And with the benefit of last year’s acquisitions, Advanced Technology revenue has grown in excess of 20 percent during each of the last four quarters. The financial performance of this segment continues to improve with excellent volume growth and the end of short term purchase accounting effects,” said Campbell. “In the Industrial Coating & Automotive segment, we grew sales despite softness in domestic industrial markets.”

On a geographic basis, second quarter sales increased 31 percent in Asia Pacific, 28 percent in Europe, 17 percent in the United States, 12 percent in Japan, and 6 percent in the Americas compared to a year ago.

“Nordson again experienced volume growth in every region where we operate. The largest increases came in Asia Pacific, the U.S. and Europe, where our strong local positions enable us to provide customers with leading technological solutions and unsurpassed support,” continued Campbell.

Fiscal Year-to-Date Results

For the first half of fiscal 2008, sales were a record $539 million, a 21 percent increase over the first half of fiscal 2007. Organic volume increased 8 percent, the first year effect of acquisitions added 7 percent and the favorable effects of currency translation added 6 percent. First half earnings on a diluted basis were a record $1.59, representing a 49 percent increase over the same period a year ago.

On a segment basis, first half sales increased 33 percent in the Advanced Technology segment, 18 percent in the Adhesive Dispensing segment, and 9 percent in the Industrial Coating and Automotive segment, all over the same period a year ago. On a geographic basis, first half sales increased 37 percent in Asia Pacific, 24 percent in Europe, 15 percent in the United States, 15 percent in Japan, and 7 percent in the Americas.

“The momentum of our first quarter continued into the second, propelling us to an impressive first half performance,” said Campbell. “Asia Pacific revenues have accelerated in 2008, up from average annual growth rates of 27 percent over the past five years.”

Order Rates and Backlog

Order rates for the 12 week period ending May 4, 2008, measured in constant currency, were equal to the same period a year ago. Order rates by segment and geography are provided in the accompanying financial tables, with pro-forma growth in order rates calculated as though fiscal year 2007 acquisitions were owned in both years.

Backlog at the end of the second quarter was approximately $122 million, an increase of 1 percent compared with $121 million for the same period a year ago. Backlog increased by approximately $20 million or 20 percent from the end of fiscal 2007 to the end of the second quarter. Backlog amounts are calculated at April 30, 2008 exchange rates.

Outlook

For the third quarter of fiscal year 2008, sales are expected to reach a record level, with growth between 13 to 17 percent over the same period a year ago. Diluted earnings per share are also expected to reach a record level, with guidance in the range of $0.91 to $1.01. The midpoint of this guidance represents a 33 percent increase over diluted earnings per share of $0.72 in the prior year.

“Nordson is well on its way towards another year of all-time highs in sales and earnings,” said Campbell.