Nordson Reports Q4 Fiscal Year 2018 and Record Full Year Results

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Nordson Corporation reported results for the fourth quarter of fiscal year 2018. For the quarter ended October 31, 2018, sales were $569 million, a 1% decrease compared to the prior year’s fourth quarter. This change in sales included a decrease of 1% in organic volume, growth related to the first year effect of acquisitions of approximately 1%, and a decrease related to the unfavorable effects of currency translation as compared to the prior year’s fourth quarter of 1%. 

Highlights:

Fourth Quarter:

• Sales were $569 million
• Operating profit was approximately $115 million, or 20% of sales; excluding restructuring charges of $3 million, operating profit was $117 million, or 21% of sales
• EBITDA was $143 million, or 25% of sales; excluding restructuring charges of $3 million, EBITDA was $146 million, or 26% of sales and equal to prior year’s fourth quarter
• GAAP diluted EPS was $1.47; adjusted diluted EPS, which excludes restructuring charges and discrete tax benefits in the quarter, was $1.44
• Free cash flow before dividends increased 5% over the prior year to $118 million, or 136% of net income

Full Year:

• Full year sales, operating profit, GAAP diluted EPS, and EBITDA are company records
• Sales of $2.3 billion included 2% organic growth, with operating profit and EBITDA growth over the prior year of 8% and 11%, respectively
• GAAP diluted EPS increased 26% to $6.40, and adjusted diluted EPS increased 11% to $5.94, both compared to the prior year
• Free cash flow before dividends increased 44% over the prior year to $415 million, or 110% of net income

Full Year 2019 Guidance:

• Organic sales volume growth forecasted to be in the range of 3 to 5% compared to fiscal 2018
• Operating margin and EBITDA margin forecasted to improve 100 to 150 basis points compared to fiscal 2018

In the fourth quarter of fiscal year 2018, reported operating profit was $115 million, net income was $87 million, and GAAP diluted earnings per share were $1.47, inclusive of a $0.03 per share benefit related to one-time items. Free cash flow before dividends increased 5% over the prior year to $118 million in the quarter, reflecting strong cash conversion of 136% of net income. Prior year fourth quarter sales, operating profit, net income and GAAP diluted earnings per share were $574 million, $125 million, $80 million and $1.37, respectively.A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share and calculations for EBITDA, adjusted EBITDA, free cash flow before dividends, and adjusted free cash flow before dividends are included in the attached financial exhibits.   

The current quarter’s results include a non-recurring restructuring charge of $3 million, or $0.04 per diluted share.Additionally, discrete tax benefits of $4 million, or $0.07 per diluted share, were recognized in the quarter.

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