Nordson reported the strongest quarterly sales, operating profit, net income and diluted EPS in its history.
For the quarter ending July 31, 2012, sales expanded to $380 million, a 22-percent increase over the prior year’s third quarter sales. This increase in sales included a 16-percent uptick in organic volume, a 10-percent rise related to the first year effect of acquisitions, and a negative 4-percent impact related to unfavorable effects of currency translation.
Third-quarter operating profit was $99 million, a record for any quarter, and operating margin reached 26 percent—an increase from the strong level in the same period a year ago. Third quarter net income and diluted earnings per share were both records at $67 million and $1.03, respectively, and compared to $57 million and $0.82 a year ago.
“Broad-based demand across our business, combined with the outstanding effort and execution of our global team, resulted in another excellent quarter for Nordson,” said Michael F. Hilton, Nordson’s president and CEO. “Organic sales volume was strong across all segments as customers continued to respond to our value proposition of best-in-class technology, application expertise and global support.
“We added to our momentum in the quarter with the acquisitions of EDI and Xaloy, two high-quality companies that together provide Nordson with a new growth platform in the plastics processing industry. The robust top line growth, coupled with our ongoing continuous improvement efforts, drove operating income, net income and diluted earnings per share to the highest levels in Nordson history.”
Third-quarter segment results:
- Total sales volume in Adhesive Dispensing Systems grew 21 percent over the prior year’s third quarter, as solid growth in consumer non-durables end markets drove a 4 percent increase in organic volume, with the remainder of the increase coming from acquisitions.
- In Advanced Technology Systems, organic sales volume increased by 33 percent, and acquisitions added 6 percent. Strong broad based demand for dispensing and test and inspection in electronics end markets, especially for mobile device applications, along with continued penetration of niche applications drove the increase.
- Industrial Coating Systems’ sales volume increased by 12 percent over the previous year and was driven by durable goods manufacturers’ demand for Nordson’s coating and cold material system solutions. The segment delivered operating margin of 14 percent in the quarter. On a sequential basis, operating profit excluding one-time charges in both quarters expanded at nearly twice the rate as sales, reflecting strong leverage within the business.”
The complete third-quarter report for Nordson is available online.
ABOUT NORDSON CORPORATION
Nordson Corporation delivers precision technology solutions that help customers increase throughput, productivity and up-time, enable new products and features, and decrease material usage. The company engineers, manufactures and markets differentiated products and systems used for dispensing and processing adhesives, coatings, plastics, sealants, biomaterials and other materials, fluid management, test and inspection, UV curing and plasma surface treatment, all supported by application expertise and direct global sales and service. Nordson serves a wide variety of consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. Founded in 1954 and headquartered in Westlake, Ohio, the company has operations and support offices in more than 30 countries.