Nordson Reports Q4 Fiscal Year 2018 and Record Full Year Results

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Backlog for the quarter ended October 31, 2018 was approximately $394 million, a decrease of 1% compared to the same period a year ago, inclusive of a 3% decline in organic growth offset by 2% growth due to acquisitions.  Backlog amounts are calculated at October 31, 2018 exchange rates.

Outlook

“We continue to diversify our business into more steady growth end-markets, and we have consistently delivered annual organic sales volume growth, as evidenced by the new exhibit included with this press release. We believe investors are best served by focusing on our annual growth performance,” said Hilton. “We are forecasting that the strength of our end markets and our ability to execute on our growth initiatives will enable another year of solid organic sales growth in fiscal 2019, recognizing that the first quarter faces a very challenging comparison. In addition to driving top line growth, we expect to leverage the Nordson Business System to generate further operational improvements over 2018.”

For the full year fiscal 2019, organic sales volume is forecasted to increase in the range of 3 to 5% compared to fiscal year 2018, offset by an unfavorable currency translation effect of 2% based on the current exchange rate environment as compared to the prior year. In addition to this sales growth, reported operating margin and EBITDA margin are forecasted to improve by approximately 100 to 150 basis points compared to fiscal 2018 results when excluding $3 million related to short-term purchase accounting for the step-up in value of acquired inventory and approximately $7 million of restructuring charges.  For fiscal year 2019, the company expects interest expense to be approximately $45 million and maintenance capital expenditures to be approximately $50 million. The company’s estimated effective tax rate is approximately 23%.

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