Nordson records Q4 earnings of US$54M, says sales rose 22% year-over-year to US$290M, expects Q1 2011 sales to increase 18%-22% from previous year, EPS of US$1.03-US$1.13/share
December 15, 2010
– * Sales increase 22 percent from the previous year to $290 million in the fourth quarter and 27 percent to $1 billion for the year
* Operating margin reaches 25 percent in the fourth quarter and 23 percent for the year; operating profit increases to all-time records of $73 million in the fourth quarter and $235 million for the year
* Diluted EPS reaches fourth quarter record of $1.56 and full year record of $4.91
* First quarter 2011 guidance: Sales expected to increase 18 to 22 percent over prior year; EPS in the range of $1.03 to $1.13
Nordson Corporation (Nasdaq: NDSN) today reported results for the fourth quarter and fiscal year ended October 31, 2010. Sales for the quarter were $290 million, an increase of 22 percent over the fourth quarter of the prior year. This sales improvement included a 23 percent increase in volume offset by a 1 percent decrease related to unfavorable currency translation effects. Fourth quarter operating profit was $73 million and net income was $54 million. Diluted earnings per share were $1.56, including one-time tax benefits of $0.07 and a $0.01 charge related to cost reduction activities.
“Nordson’s global team delivered another quarter of truly excellent results by continuing to meet customer needs more efficiently than the competition,” said President and Chief Executive Officer Michael F. Hilton. “We continued to grow our business around the world while controlling costs, resulting in the highest level of quarterly operating profit in our history.”
Fourth Quarter Segment & Regional Results
“Quarterly sales grew year-over-year in all segments and geographies,” said Hilton. “Adhesive Dispensing Systems continued to perform at a very high level and delivered operating margin of 33 percent. Results were also very strong in Advanced Technology Systems, where operating margin was 25 percent. Industrial Coating Systems sales and operating profit improved for the third consecutive quarter, as the benefits of last year’s restructuring efforts and increasing volume combined to drive operating margin to 17 percent.”
Detailed results by operating segment and geography are included in the attached tables, as is an earnings per share reconciliation table.
Fiscal 2010 Full Year Results
Sales exceeded $1 billion in fiscal year 2010, an increase of 27 percent over the previous year. Volume increased by 25 percent and the favorable effects of currency translation added 2 percent. Operating profit for the year was $235 million, net income was $168 million and diluted earnings per share were $4.91, all of which were full year records for Nordson. Diluted earnings per share include $0.33 in one-time tax benefits and $0.04 in charges related to severance and restructuring activities.
“With a focused global team, clear goals and a winning business model, Nordson took full advantage of the economic recovery this year to deliver the strongest financial performance in our history,” said Hilton. “Volume in all segments and geographies grew strongly over the previous year, and our operating margin of 23 percent is the strongest performance in more than 25 years. I personally want to thank all of our employees for their outstanding efforts this year and the high level of value they continue to provide our customers worldwide.”
Order Rates and Backlog
Order rates for the 12-week period ending December 5, 2010, measured in constant currency, increased 22 percent over the same period a year ago. Order rates by segment and geography are provided in the accompanying financial tables.
Backlog at the end of the fourth quarter of fiscal 2010 was $128 million, an increase of 60 percent compared with $80 million at the end of the fourth quarter a year ago. Backlog amounts are calculated at October 31, 2010 exchange rates.
For the first quarter of fiscal 2011, sales are expected to be in the range of $260 million to $268 million, an increase in volume of 20 to 24 percent which will be partially offset by a negative 2 percent currency translation effect as compared to the first quarter a year ago. Diluted earnings per share are expected to be in the range of $1.03 to $1.13.
“Nordson is well positioned to continue building on excellence in 2011,” said Hilton. “We remain focused on helping customers succeed through our application expertise, differentiated technology and direct sales and service support. Our leaner and more effective global organization continues to produce excellent results, yet we still see opportunities for further improvement. The Nordson team possesses a strong ability to execute, as demonstrated by our success over the past year, and I am confident they will continue to deliver at a high level. Our outlook is for a strong first quarter, though we remain mindful of numerous uncertainties surrounding the pace of global economic recovery.”
Nordson will broadcast its fourth-quarter conference call on the investor relations page of its Web site, www.nordson.com/investors, on Thursday, December 16, 2010 at 8:30 a.m. eastern time. For persons unable to listen to the live broadcast, a replay will be available for 14 days after the event. Information about Nordson’s investor relations and shareholder services is available from James R. Jaye, Director of Communications & Investor Relations at (440) 414-5639 or Jim.Jaye@nordson.com.
Except for historical information and comparisons contained herein, statements included in this release may constitute “forward-looking statements,” as defined by the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors, as discussed in the company’s filing with the Securities and Exchange Commission that could cause actual results to differ.
Nordson Corporation is one of the world’s leading producers of precision dispensing equipment that applies adhesives, sealants, liquid and powder coatings and other materials to a broad range of consumer and industrial products during manufacturing operations. The company also manufactures equipment used in the testing and inspection of electronic components as well as technology-based systems for UV curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has direct operations and sales support offices in more than 30 countries. Visit Nordson on the web at www.nordson.com, www.twitter.com/Nordson_Corp or Facebook.