-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueComing to Terms With AI
In this issue, we examine the profound effect artificial intelligence and machine learning are having on manufacturing and business processes. We follow technology, innovation, and money as automation becomes the new key indicator of growth in our industry.
Box Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Nordson Reports Record Q1 Sales and Diluted Earnings per Share
February 21, 2017 | NordsonEstimated reading time: 6 minutes
Highlights:
- Sales of $407 million is a first quarter record and inclusive of 10 percent organic growth compared to the prior year’s first quarter
- Operating profit increases 46 percent to $76 million, and operating margin improves 5 percentage points to 19 percent, both compared to prior year’s first quarter
- GAAP diluted EPS of $0.86 is a first quarter record and a 41 percent increase compared to the prior year’s first quarter normalized EPS
- Pro-forma 12 week order rates increase 7 percent over same period a year ago
- Second quarter 2017 guidance: Sales expected to increase in the range of 3 percent to 7 percent compared to same period a year ago; GAAP Diluted EPS in the range of $1.21 to $1.33
Nordson Corporation today reported results for the first quarter of fiscal year 2017. For the quarter ending January 31, 2017, sales were $407 million, an increase of 10 percent from the prior year’s first quarter. This change in sales included a 10 percent increase in organic volume and a 1 percent increase related to the first year effect of acquisitions, offset by a 1 percent decrease related to the unfavorable effects of currency translation compared to the prior year’s first quarter. Operating profit for the quarter was $76 million, net income was $50 million, and diluted earnings per share were $0.86. Prior year first quarter sales, operating profit, net income and diluted earnings per share were $372 million, $52 million, $41 million and $0.72, respectively.
“Nordson delivered record first quarter sales, including 10 percent organic volume growth over the same period a year ago, as all three segments continued to perform at a high level,” said Michael F. Hilton, Nordson President and Chief Executive Officer. “We leveraged the increased revenue to drive reported operating margin to 19 percent in the quarter, an improvement of 5 percentage points over the first quarter a year ago and an excellent performance given the seasonally lower volume we typically see in our first quarter. Incremental operating margin on the increased volume was 68 percent. Reported diluted earnings per share of $0.86 were a first quarter record and an increase of 41 percent compared to the prior year on a normalized basis. Free cash flow before dividends was $71 million or 143 percent of net income.”
“Capital deployment in the quarter included the distribution of approximately $15 million in dividends, along with the acquisition of the assets of ACE Production Technologies which establishes a new growth niche within our targeted electronics markets. Two other acquisitions that fit with our strategic priorities, Plas-Pak Industries and Interselect GmbH, closed shortly after the quarter end. And in a separate disclosure also released today, we are very pleased to announce the signing of a definitive agreement to acquire the Advanced Technologies business of Vention Medical, a transaction we expect will close during our second quarter.” Nordson management will provide further discussion of these transactions as part of its first quarter conference call, scheduled for 8:30 am eastern on February 21 and available via Nordson’s website at www.nordson.com/investors.
First Quarter Segment Results
“Volume leverage, favorable mix and continuous improvement benefits enabled all three segments to deliver significant margin improvement compared to the first quarter a year ago,” said Hilton.
Organic sales volume in the Adhesive Dispensing Systems segment increased 3 percent compared to the first quarter a year ago, offset by a negative 1 percent impact related to unfavorable currency translation. “This segment delivered solid growth against a challenging comparison to the prior year first quarter where organic growth was 11 percent,” said Hilton. “Our general product assembly and rigid packaging product lines drove the growth. On a geographic basis, Asia Pacific, the Americas and Japan were strongest.” Reported operating margin in this segment was 26 percent in the first quarter, an improvement of 1 percentage point compared to the same period a year ago.
Sales volume in the Advanced Technology Systems segment increased 25 percent compared to the first quarter a year ago, inclusive of a 23 percent increase in organic volume and a 2 percent increase related to the first year effect of the LinkTech and ACE acquisitions. This growth was offset by 2 percent negative impact related to unfavorable currency translation. “All product lines and geographies in the segment delivered excellent organic growth, most by double digits, with performance aided in part by comparison to a softer first quarter in some end markets a year ago. The LinkTech and ACE acquisitions are performing as expected and add to our offerings for medical and electronic customers, respectively,” said Hilton. Reported segment operating margin was 18 percent in the quarter, an increase of 11 percentage points over the same period a year ago.
Organic sales volume in the Industrial Coating Systems segment increased 8 percent compared to the first quarter a year ago, offset by a less than 2 percent negative impact related to unfavorable currency translation. “Growth was strong in nearly all regions and was led by demand for our cold material dispensing, powder coating and UV curing product lines,” said Hilton. Reported segment operating margin was 13 percent in the quarter, an increase of 5 percentage points over the same period a year ago.
Order Rates and Backlog
Order rates for the 12-week period ending February 12, 2017, measured in constant currency, increased 7 percent over 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 acquisitions that closed prior to the end of the first quarter of 2017 were owned in both years.
Backlog for the quarter ended January 31, 2017 was approximately $308 million, an increase of 24 percent compared to the same quarter a year ago, and inclusive of 23 percent organic growth and 1 percent growth due to acquisitions. Backlog amounts are calculated at January 31, 2017 exchange rates and include acquisitions that closed prior to the end of the first quarter of 2017.
Outlook
For the second quarter of fiscal year 2017, sales are expected to increase in the range of 3 percent to 7 percent compared to the prior year’s second quarter. This is inclusive of organic growth of 3 percent to 7 percent, 2 percent growth from the first year effect of acquisitions, and a negative currency effect of 2 percent based on the current exchange rate environment. At the midpoint of this sales outlook, operating margin is expected to be approximately 24 percent. GAAP diluted earnings per share are expected to be in the range of $1.21 to $1.33. This outlook does not include the Vention Medical acquisition, which has not yet closed.
“Our backlog, 12 week order rates and project activity all remain solid, leading us to forecast organic volume growth of 5 percent compared to the prior year at the midpoint of our second quarter guidance,” said Hilton. “This is an excellent level well ahead of most current global GDP forecasts and is against a challenging prior year comparison where we delivered robust organic sales growth of 9 percent. We continue to focus on innovative products, new applications and superior customer service to capture growth in our diverse end markets. We also remained focused on continuous improvement initiatives within the Nordson Business System to drive ongoing performance enhancements across the enterprise.”
About Nordson
Nordson engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids; to test and inspect for quality; and to treat and cure surfaces. These products are supported with extensive application expertise and direct global sales and service. We serve a wide variety of consumer non-durable, consumer durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, building and 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. Visit Nordson on the web at www.nordson.com.
Suggested Items
AT&S 2024/25 on Growth Course Again
05/17/2024 | AT&SAT&S operated in a challenging market environment in the financial year 2023/24. After a strong second quarter, demand was relatively weak again in some market segments in the second half of the financial year.
Nortech Systems Reports Q1 Results and Actions to Reduce Facility Costs
05/17/2024 | BUSINESS WIRENortech Systems Incorporated, a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, industrial and defense markets, reported first quarter ended March 31, 2024 financial results.
The ICAPE Group Reports Revenue for Q1 2024
05/16/2024 | ICAPE GroupThe ICAPE Group, a global technology distributor of printed circuit boards (PCB) and custom-made electromechanical parts, announced its revenue for the first quarter of 2024.
Sypris Reports Q1 2024 Results; Revenue Up 10%
05/15/2024 | Sypris Solutions Inc.The Company’s first quarter 2024 consolidated revenue increased 10.1% to $35.6 million compared with the prior-year quarter, representing the 11th quarter of double-digit year-over-year growth during the past 12 quarterly periods.
Wistron Posts Q1 2024 Financial Results
05/13/2024 | WistronFollowing the meeting of the Board of Directors of Wistron Corp., the company announced the financial results for the first quarter ended March 31, 2024.