EX-99.1 2 a6122372-ex991.htm EXHIBIT 99.1

Exhibit 99.1

Nordson Corporation Reports Results for Fourth Quarter and Fiscal Year 2009

  • Fourth quarter sales improve 15 percent sequentially; full year sales total $819 million
  • Earnings impacted by non-cash goodwill and long-lived asset pre-tax impairment charges of $243 million
  • Fourth quarter operating margin, before impairment charges, improves sequentially to 20 percent, exceeding level of a year ago
  • Fourth quarter diluted earnings per share, before impairment charges, improve sequentially to $0.85
  • Strong free cash flow of $40 million during fourth quarter more than triples level of a year ago
  • First quarter FY2010 sales expected to increase 13 to 17 percent over prior year; midpoint of first quarter earnings per share guidance to double prior year

WESTLAKE, Ohio--(BUSINESS WIRE)--December 16, 2009--Nordson Corporation (Nasdaq: NDSN) today reported results for the fourth quarter and fiscal year 2009. For the quarter ending October 31, 2009, sales were $237 million, an increase of 15 percent over the third quarter of 2009. Net loss for the quarter was $209 million, or $6.22 per diluted share, inclusive of non-cash goodwill and other long-lived asset impairment charges of $7.08 per share. Excluding the impairment charges, adjusted earnings for the quarter were $29 million, or $0.85 per diluted share, inclusive of a $0.04 per share charge related to previously announced cost reduction activities. Prior year fourth quarter sales, net income and diluted earnings per share were $298 million, $31 million and $0.90, respectively.

“Nordson delivered another quarter of very strong operating performance,” said Chairman, President and Chief Executive Officer Edward P. Campbell. “Excluding non-cash impairment charges, operating margin was 20 percent, exceeding the outstanding performance of the previous quarter and the prior year’s fourth quarter. We also continued to generate a very high level of free cash, which at $40 million in the quarter more than triples the level of a year ago.”

“While the quarter’s non-cash charges for the impairment of goodwill and other long-lived assets from various acquisitions are required under generally accepted accounting principles, the company’s market position, operating strength and cash resources are not in any way affected by the charges,” added Campbell.

Fourth Quarter Segment & Regional Results
“All segments and geographies reported strong sequential sales growth,” said Campbell. “I am pleased with the second consecutive quarter of 29 percent operating margin delivered by the Adhesives Dispensing Systems segment, as well as the improvement in the Industrial Coating Systems segment operating margin, which reached 6 percent before impairment charges.” Campbell also announced that the name of the Industrial Coating and Automotive Systems segment has been changed to Industrial Coating Systems to more accurately reflect the broad composition of the segment’s customer base.

Detailed results by operating segment and geography are included in the attached tables, as is a reconciliation of non-GAAP to GAAP results for the fourth quarter and full year.

Fiscal 2009 Full Year Results
For the full 2009 fiscal year, sales were $819 million. Net loss for the year was $160 million, or $4.77 per diluted share, inclusive of the $7.08 per share non-cash impairment charges. Excluding impairment charges, adjusted earnings for the year were $78 million, or $2.31 per diluted share, inclusive of $0.31 per share in charges related to previously announced cost reduction activities and $0.20 per share in gains related to one-time tax benefits and the sale of real estate. Prior year sales, net income and diluted earnings per share on a full year basis were $1.1 billion, $118 million and $3.43, respectively.

“Sales improved sequentially in every quarter this year, as did operating profit, operating margin and diluted earnings per share excluding the non-cash impairment charges,” said Campbell. “These solid results were achieved despite very challenging economic conditions, and were driven by our global team’s ability to bring value to customers while also controlling costs, as evidenced by the $86 million reduction in selling and administrative expenses from the prior year.”

Order Rates and Backlog
Order rates for the 12-week period ending December 13, 2009, measured in constant currency, increased 4 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 was approximately $79 million, a decrease of 9 percent compared with $87 million at the end of the fourth quarter last year. Backlog amounts are calculated at October 31, 2009 exchange rates.

Outlook
For the first quarter of fiscal 2010, sales are expected to increase in the range of 13 to 17 percent over the first quarter a year ago. Diluted earnings per share are expected to be in the range of $0.61 to $0.71, including an anticipated $0.10 per share one-time tax benefit and a $0.01 per share charge for restructuring activities.

“I am extremely pleased with how strongly positioned Nordson begins 2010,” said Campbell. “All of the company’s markets are showing varying degrees of recovery, more lean and effective organizational structures are in place, our market leadership positions are intact, and we continue to post strong operating results. I have every confidence that Nordson’s leadership team will continue to deliver the excellent financial results that investors have come to expect.”

Nordson will broadcast its fourth-quarter conference call on the investor relations page of its Web site, www.nordson.com, on Thursday, December 17, 2009 at 8:30 a.m. EDT. 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 (Nasdaq: NDSN) is one of the world’s leading producers of precision dispensing equipment that applies adhesives, sealants, 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 curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has direct operations and sales support offices in more than 30 countries.

 

NORDSON CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands except for per-share amounts)

               

FOURTH QUARTER PERIOD

 

Period Ending October 31, 2009

(Unaudited)

 

CONSOLIDATED STATEMENT OF INCOME

Fourth Quarter Year-to-Date
2009 2008 2009 2008
 
Net sales $ 237,444 $ 297,662 $ 819,165 $ 1,124,829
Cost of sales 100,375 135,398 350,239 494,394
Selling & administrative expenses 90,665 113,845 353,690 440,097
Goodwill and long-lived asset impairments   243,043     -     243,043     -  
 
Operating profit (loss) (196,639 ) 48,419 (127,807 ) 190,338
 
Interest expense - net (1,470 ) (3,096 ) (7,279 ) (15,464 )
Other income - net   618     76     7,895     4,914  
 
Income (loss) before income taxes (197,491 ) 45,399 (127,191 ) 179,788
Income taxes   11,542     14,653     32,864     62,284  
 
Net Income (loss) $ (209,033 ) $ 30,746   $ (160,055 ) $ 117,504  
 
 
 
Return on sales -88 % 10 % -20 % 10 %
Return on average shareholders' equity -147 % 20 % -28 % 20 %
 
 
                           
 
Average common shares outstanding (000's) 33,620 33,940 33,565 33,746
Average common shares and common share equivalents (000's)
33,620 34,271 33,565 34,307
 
Per share:
 
Basic earnings (loss) $ (6.22 ) $ .91 $ (4.77 ) $ 3.48
Diluted earnings (loss) $ (6.22 ) $ .90 $ (4.77 ) $ 3.43
 
Dividends paid $ .19 $ .1825 $ .7375 $ .73
 
 
 
FOURTH QUARTER PERIOD
Period Ending October 31, 2009
(Unaudited)
 

CONSOLIDATED BALANCE SHEET

October 31 October 31
2009 2008
 
Cash and marketable securities $ 18,824 $ 11,760
Receivables 191,201 224,813
Inventories 97,636 118,034
Other current assets   39,010   29,706
Total current assets 346,671 384,313
 
Property, plant & equipment - net 118,291 133,843
Other assets   425,712   648,513
 
$ 890,674 $ 1,166,669
 
Notes payable and debt due within one year $ 5,577 $ 46,351
Accounts payable and accrued liabilities   150,845   157,645
Total current liabilities 156,422 203,996
 
Long-term debt 152,260 238,550
Other liabilities 212,016 150,011
Total shareholders' equity   369,976   574,112
 
$ 890,674 $ 1,166,669
             
 
 
 
Other information:
 
Employees 3,681 4,200
 
Common shares outstanding (000's) 33,678 33,708
 
 

NORDSON CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands)

                             

FOURTH QUARTER PERIOD

Period Ending October 31, 2009

(Unaudited)

 
Fourth Quarter % Growth over 2008 Year-to-Date % Growth over 2008

SALES BY BUSINESS SEGMENT

2009 2008 Volume Currency Total 2009 2008 Volume Currency Total
 
 
Adhesive dispensing systems $ 132,562 $ 151,544 -13.9 % 1.4 % -12.5 % $ 460,746 $ 580,711 -16.3 % -4.4 % -20.7 %
Advanced technology systems 73,255 95,144 -21.8 % -1.2 % -23.0 % 248,827 367,366 -28.2 % -4.1 % -32.3 %
Industrial coating systems   31,627     50,974   -39.2 % 1.2 % -38.0 %   109,592     176,752   -35.9 % -2.1 % -38.0 %
 
Total sales by business segment $ 237,444   $ 297,662   -20.7 % 0.5 % -20.2 % $ 819,165   $ 1,124,829   -23.3 % -3.9 % -27.2 %
 
 
Fourth Quarter Year-to-Date
OPERATING PROFIT (LOSS) BY BUSINESS SEGMENT 2009 2008 2009 2008
 
Adhesive dispensing systems $ 38,555 $ 38,081 $ 127,589 $ 145,390
Advanced technology systems (227,611 ) 16,243 (214,373 ) 61,764
Industrial coating systems (1,866 ) 5,124 (7,303 ) 11,015
Corporate   (5,717 )   (11,029 )   (33,720 )   (27,831 )
 
Total operating profit (loss) by business segment $ (196,639 ) $ 48,419   $ (127,807 ) $ 190,338  
 
 
Fourth Quarter % Growth over 2008 Year-to-Date % Growth over 2008
SALES BY GEOGRAPHIC REGION 2009 2008 Volume Currency Total 2009 2008 Volume Currency Total
 
United States $ 65,371 $ 81,641 -19.9 % - -19.9 % $ 235,295 $ 315,553 -25.4 % - -25.4 %
Americas 20,859 22,257 -3.6 % -2.7 % -6.3 % 59,900 76,860 -14.0 % -8.1 % -22.1 %
Europe 81,243 108,617 -25.5 % 0.3 % -25.2 % 295,952 431,583 -22.9 % -8.5 % -31.4 %
Japan 23,300 37,773 -44.2 % 5.9 % -38.3 % 81,944 110,891 -31.6 % 5.5 % -26.1 %
Asia Pacific   46,671     47,374   -0.9 % -0.6 % -1.5 %   146,074     189,942   -19.3 % -3.8 % -23.1 %
 
Total sales by geographic region $ 237,444   $ 297,662   -20.7 % 0.5 % -20.2 % $ 819,165   $ 1,124,829   -23.3 % -3.9 % -27.2 %
                                                   
 
 
Fourth Quarter Year-to-Date
SELECTED SUPPLEMENTAL INFORMATION 2009 2008 2009 2008
 
Depreciation and amortization $ 7,209 $ 8,592 $ 31,410 $ 32,237
Capital expenditures $ 2,801 $ 8,501 $ 12,514 $ 26,386
Dividends paid $ 6,386 $ 6,215 $ 24,747 $ 24,645
 
                         

NORDSON CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF NET LOSS TO EARNINGS AS ADJUSTED

(Dollars in thousands except for per-share amounts)
 

FOURTH QUARTER PERIOD

Period Ending October 31, 2009

(Unaudited)

     
 

Earnings and operating profit as adjusted (Non-GAAP) are measures of income that differ from earnings and operating profit measured in accordance with generally accepted accounting principles (“GAAP”). Earnings and operating profit as adjusted (Non-GAAP) are adjusted for exclusion of goodwill and long-lived asset impairment charges. Management believes that operating profit, net income (loss) and earnings as adjusted for exclusion of these charges assist in understanding the results of operations of Nordson Corporation. In addition, Management and the Board evaluate results using operating profit, net (loss) income and earnings as adjusted.

 
 
Fourth Quarter 2009 Year-to-Date 2009
Income (Loss) Income (Loss) Diluted Return Return Income (Loss) Income (Loss) Diluted Return Return
Before Taxes   After Taxes   EPS   On Sales   On Equity Before Taxes   After Taxes   EPS   On Sales   On Equity
 
Net loss $ (197,491 ) $ (209,033 ) $ (6.22 ) -88 % -147 % $ (127,191 ) $ (160,055 ) $ (4.77 ) -20 % -28 %
 
Goodwill and long-lived asset impairments 243,043 237,927 7.08 243,043 237,927 7.09
 

Pro forma effect of dilution on earnings as adjusted *

                 

(0.01

)

                 

(0.01

)

 
Earnings as adjusted (Non-GAAP) $ 45,552     $ 28,894     $ 0.85     12 %     18 % $ 115,852     $ 77,872     $ 2.31     10 %     13 %
 
 

* Our loss per share for generally accepted accounting principles (GAAP) does not allow for the inclusion of the dilutive effect of shares in the denominator of our per share calculation since this effect would result in a reduction of the loss per share. The pro forma effect of dilution on earnings as adjusted is included in the reconciliation of our Non-GAAP measure so that earnings as adjusted reflects the impact of any applicable dilutive shares.

 
 
OPERATING PROFIT (LOSS) BY BUSINESS SEGMENT Fourth Year-
Quarter to-Date
Fourth Quarter 2009 2008 Year-to-Date 2009 2008
Operating Operating Operating Operating Operating Operating
Profit Profit (Loss) Profit Profit Profit (Loss) Profit
(Loss)   Impairments   As Adjusted (Loss) (Loss)   Impairments   As Adjusted (Loss)
 
Adhesive dispensing systems $ 38,555 $ - $ 38,555 $ 38,081 $ 127,589 $ - $ 127,589 $ 145,390
Advanced technology systems (227,611 ) 239,427 11,816 16,243 (214,373 ) 239,427 25,054 61,764
Industrial coating systems (1,866 ) 3,616 1,750 5,124 (7,303 ) 3,616 (3,687 ) 11,015
Corporate   (5,717 )     -       (5,717 )   (11,029 )   (33,720 )     -       (33,720 )   (27,831 )
 
Total operating (loss) profit by business segment $ (196,639 )   $ 243,043     $ 46,404   $ 48,419   $ (127,807 )   $ 243,043     $ 115,236   $ 190,338  
 
Operating profit (loss) as a % of sales   -83 %   20 %   16 %   -16 %   14 %   17 %
 
 

NORDSON CORPORATION

ORDER RATES FOR 12-WEEK PERIOD ENDING DECEMBER 13, 2009
CHANGE FROM PRIOR YEAR
           
 

BUSINESS SEGMENT

% CHANGE GEOGRAPHY % CHANGE
 
Adhesive dispensing systems 3% United States 2%
Advanced technology systems 20% Americas 10%
Industrial coating systems -22% Europe -9%
Japan -27%
Total 4% Asia Pacific 64%
 
Total 4%
 
 
Note: Numbers in this table are unaudited and exclude the effects of currency movements.

CONTACT:
Nordson Corporation
James R. Jaye, 440-414-5639
Director, Communications & Investor Relations
Jim.Jaye@nordson.com