EX-99.1 2 a6546891ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Nordson Corporation Reports Record Fourth Quarter and Full Year 2010 Operating Profit, Net Income and Earnings per Share

  • 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

WESTLAKE, Ohio--(BUSINESS WIRE)--December 15, 2010--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.


Outlook

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.


NORDSON CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands except for per-share amounts)

     
FOURTH QUARTER PERIOD
Period Ending October 31, 2010
(Unaudited)
   

CONSOLIDATED STATEMENT OF INCOME

Fourth Quarter Year-to-Date
2010 2009 2010 2009
 
Net sales $ 290,182 $ 237,444 $ 1,041,551 $ 819,165
Cost of sales 119,911 100,375 419,937 350,239
Selling & administrative expenses 96,993 90,665 386,781 353,690
Goodwill and long-lived asset impairments   -       243,043     -       243,043  
 
Operating profit (loss) 73,278 (196,639 ) 234,833 (127,807 )
 
Interest expense - net (1,432 ) (1,470 ) (5,444 ) (7,279 )
Other income - net   1,230     618     1,930     7,895  
 
Income (loss) before income taxes 73,076 (197,491 ) 231,319 (127,191 )
Income taxes   19,520     11,542     63,271     32,864  
 
Net Income (loss) $ 53,556   $ (209,033 ) $ 168,048   $ (160,055 )
 
 
 
Return on sales 18 % -88 % 16 % -20 %

Return on average shareholders' equity

45 % -147 % 40 % -28 %
 
 
 
                   
 
Average common shares outstanding (000's) 33,915 33,620 33,805 33,565

Average common shares and common share equivalents (000's)

34,320 33,620 34,221 33,565
 
Per share:
 
Basic earnings (loss) $ 1.58 $ (6.22 ) $ 4.97 $ (4.77 )
Diluted earnings (loss) $ 1.56 $ (6.22 ) $ 4.91 $ (4.77 )
 
Dividends paid $ .21 $ .19 $ .78 $

.7375

 
FOURTH QUARTER PERIOD
Period Ending October 31, 2010
(Unaudited)
   
 

CONSOLIDATED BALANCE SHEET

October 31 October 31
2010 2009
 
Cash and marketable securities $ 50,169 $ 18,824
Receivables 243,790 191,201
Inventories 117,721 97,636
Other current assets   39,351   39,010
Total current assets 451,031 346,671
 
Property, plant & equipment - net 116,395 118,291
Other assets   418,928   425,712
 
$ 986,354 $ 890,674
 
Notes payable and debt due within one year $ 16,420 $ 5,577
Accounts payable and accrued liabilities   175,494   150,845
Total current liabilities 191,914 156,422
 
Long-term debt 96,000 152,260
Other liabilities 193,368 212,016
Total shareholders' equity   505,072   369,976
 
$ 986,354 $ 890,674
         
 
 
Other information:
 
Employees 3,680 3,681
 
Common shares outstanding (000's) 33,935 33,678
 

NORDSON CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands)

                 
FOURTH QUARTER PERIOD
Period Ending October 31, 2010
(Unaudited)
 
 
 
Fourth Quarter % Growth over 2009 Year-to-Date % Growth over 2009

SALES BY BUSINESS SEGMENT

2010 2009 Volume Currency Total 2010 2009 Volume Currency Total
 
 
Adhesive dispensing systems $ 142,609 $ 132,562 9.3 % -1.7 % 7.6 % $ 525,290 $ 460,746 12.0 % 2.0 % 14.0 %
Advanced technology systems 103,900 73,255 42.7 % -0.9 % 41.8 % 380,304 248,827 52.2 % 0.6 % 52.8 %
Industrial coating systems   43,673     31,627   38.0 % 0.1 % 38.1 %   135,957     109,592   22.2 % 1.9 % 24.1 %
 
Total sales by business segment $ 290,182   $ 237,444   23.4 % -1.2 % 22.2 % $ 1,041,551   $ 819,165   25.5 % 1.6 % 27.1 %
 
 
 
Fourth Quarter Year-to-Date

OPERATING PROFIT (LOSS) BY BUSINESS SEGMENT

2010 2009 2010 2009
 
Adhesive dispensing systems $ 46,594 $ 38,555 $ 166,255 $ 127,589
Advanced technology systems 25,525 (227,611 ) 86,329 (214,373 )
Industrial coating systems 7,536 (1,866 ) 12,506 (7,303 )
Corporate   (6,377 )   (5,717 )   (30,257 )   (33,720 )
 
Total operating profit (loss) by business segment $ 73,278   $ (196,639 ) $ 234,833   $ (127,807 )
 
 
 
Fourth Quarter % Growth over 2009 Year-to-Date % Growth over 2009

SALES BY GEOGRAPHIC REGION

2010 2009 Volume Currency Total 2010 2009 Volume Currency Total
 
United States $ 77,103 $ 65,371 17.9 % - 17.9 % $ 277,262 $ 235,295 17.8 % - 17.8 %
Americas 21,353 20,859 -0.3 % 2.7 % 2.4 % 77,592 59,900 21.8 % 7.7 % 29.5 %
Europe 93,248 81,243 22.0 % -7.2 % 14.8 % 337,448 295,952 14.4 % -0.4 % 14.0 %
Japan 26,932 23,300 7.2 % 8.4 % 15.6 % 95,789 81,944 11.0 % 5.9 % 16.9 %
Asia Pacific   71,546     46,671   52.3 % 1.0 % 53.3 %   253,460     146,074   70.4 % 3.1 % 73.5 %
 
Total sales by geographic region $ 290,182   $ 237,444   23.4 % -1.2 % 22.2 % $ 1,041,551   $ 819,165   25.5 % 1.6 % 27.1 %
 
                                         
 
 
Fourth Quarter Year-to-Date

SELECTED SUPPLEMENTAL INFORMATION

2010 2009 2010 2009
 
Depreciation and amortization $ 6,543 $ 7,209 $ 28,888 $ 31,410
Capital expenditures $ 6,505 $ 2,801 $ 14,317 $ 12,514
Dividends paid $ 7,124 $ 6,386 $ 26,439 $ 24,747
 

NORDSON CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands except for per-share amounts)

         

FOURTH QUARTER PERIOD

Period Ending October 31, 2010

(Unaudited)

 

Adjusted EPS, net income and operating profit are not measurements of financial performance under GAAP, and such measures should not be considered as alternatives to EPS, net income and operating profit determined in accordance with GAAP. Management believes that EPS, net income and operating profit as adjusted to exclude the items in the tables below assist in understanding the results of Nordson Corporation. Our calculation of these non-GAAP measures may not be comparable to the calculation of similarly titled measures reported by other companies.

EARNINGS PER SHARE

       
Fourth Quarter Year-to-Date
2010 2009 2010 2009
 
Diluted EPS as reported (U.S. GAAP) $ 1.56 $ (6.22 ) $ 4.91 $ (4.77 )
Goodwill and long-lived asset impairments - 7.08 - 7.09
Effect of dilution on earnings as adjusted *   -     (0.01 )   -     (0.01 )
Diluted EPS adjusted for impairment charges 1.56 0.85 4.91 2.31
 
Other reconciling items:
Severance and restructuring 0.01 0.05 0.04 0.32
Tax benefit from sale of UV product lines - - (0.31 ) -
Other one-time tax items (0.07 ) - (0.02 ) (0.11 )
Real estate sale   -     -     -     (0.10 )
 
Diluted EPS as adjusted (Non-GAAP) $ 1.50   $ 0.90   $ 4.62   $ 2.42  
 

* 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 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.

 

2009 NET INCOME (LOSS)

 

 

 

Fourth Quarter

Year-to-Date
 
Net loss $ (209,033 ) $ (160,055 )
Goodwill and long-lived asset impairments   237,927     237,927  
 
Net income as adjusted (Non-GAAP) $ 28,894   $ 77,872  
 

OPERATING PROFIT (LOSS) BY BUSINESS SEGMENT

 

 

         

 

     

Fourth
Quarter

Year-
to-Date

2010 Fourth Quarter 2009 2010 Year-to-Date 2009
Operating Operating Operating Operating Operating Operating
Profit Profit Profit (Loss) Profit Profit Profit (Loss)
(Loss) (Loss)   Impairments   As Adjusted (Loss) (Loss)   Impairments   As Adjusted
 
Adhesive dispensing systems $ 46,594 $ 38,555 $ - $ 38,555 $ 166,255 $ 127,589 $ - $ 127,589
Advanced technology systems 25,525 (227,611 ) 239,427 11,816 86,329 (214,373 ) 239,427 25,054
Industrial coating systems 7,536 (1,866 ) 3,616 1,750 12,506 (7,303 ) 3,616 (3,687 )
Corporate   (6,377 )   (5,717 )     -     (5,717 )   (30,257 )   (33,720 )     -     (33,720 )
 
Total operating (loss) profit by business segment $ 73,278   $ (196,639 )   $ 243,043   $ 46,404   $ 234,833   $ (127,807 )   $ 243,043   $ 115,236  
 
Operating profit (loss) as a % of sales   25 %   -83 %   20 %   23 %   -16 %   14 %
 

NORDSON CORPORATION

ORDER RATES FOR 12-WEEK PERIOD ENDING DECEMBER 5, 2010
CHANGE FROM PRIOR YEAR
           
 

BUSINESS SEGMENT

% CHANGE

GEOGRAPHY

% CHANGE

 
Adhesive dispensing systems 15% United States 15%
Advanced technology systems 26% Americas 17%
Industrial coating systems 40% Europe 20%
Japan 34%
Total 22% Asia Pacific 28%
 
Total 22%

Note: Numbers in this table are unaudited and exclude the effects of currency movements.

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