EX-99.1 2 nc2833ex991.txt Exhibit 99.1 NORDSON CORPORATION'S SECOND QUARTER SALES, NET INCOME AND EARNINGS ACHIEVE NEW RECORD LEVELS WESTLAKE, Ohio, May 24 /PRNewswire-FirstCall/ -- Nordson Corporation (Nasdaq: NDSN) today announced record sales and earnings for the second quarter, which ended May 1, 2005. On a diluted basis, earnings per share for the quarter were $.47 compared with $.46 for the second quarter of 2004. Worldwide sales for the second quarter of 2005 reached a record $207.6 million, a 6 percent increase over sales of $196.6 million for the same period of 2004. Volume gains were 3 percent, with the remainder of the increase resulting from currency effects associated with a weaker U.S. dollar. Sales volume for the company's Finishing Systems segment increased by 17 percent and volume for its Advanced Technology segment was up 2 percent. Sales volume for the company's Adhesive Dispensing segment was flat relative to a year ago. On a geographic basis, second quarter sales volume was up 11 percent in the United States and 3 percent in the Americas. Sales volume decreased 1 percent and 8 percent in Europe and Japan respectively, while volume was up 5 percent in the Asia Pacific Region. Backlog at the end of the second quarter was approximately $95 million, up $16 million from the beginning of the fiscal year calculated at constant exchange rates. For the first half of 2005, sales were a record $397.8 million, an 8 percent increase over the same period of the prior year. Sales volume increased 5 percent with favorable currency effects accounting for the balance. Year-to-date earnings per share on a diluted basis were $.86, also a record, compared with $.73 for the same period last year. "Strong performance in the United States helped mitigate the effect of a softening business environment in both Europe and Japan. Although the performance of our Adhesive System businesses was adversely impacted by the business climate in these regions, we are encouraged with the continued strong pace of order activity in the United States, especially within our Advanced Technology segment," said Edward P. Campbell, Nordson Chairman and Chief Executive Officer. "We continue to expect sales volume growth for the fiscal year, exclusive of acquisitions, to be in the four percent to five percent range," Campbell added. Nordson will broadcast its second-quarter conference call on the investor relations page of the company's Web site, www.nordson.com , on Wednesday, May 25, 2005, at 8:30 a.m. EDT. For those 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 Barbara Price, manager, shareholder relations, at (440) 414-5344. 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 filings 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 and coatings to a broad range of consumer and industrial products during manufacturing operations. The company also manufactures technology-based systems for curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has 3,500 employees worldwide, and direct operations and sales support offices in 30 countries. A summary of sales, income and earnings is presented in the attached tables. Contact: Derrick Johnson, Director, Corporate Communications Phone: (440) 414-5639 E-mail: djohnson@nordson.com SECOND QUARTER PERIOD NORDSON CORPORATION Period Ending May 1, 2005 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands except for per-share amounts) CONSOLIDATED STATEMENT OF INCOME
Second Quarter Year-to-Date ------------------------ ------------------------- 2005 2004 2005 2004 ---------- ---------- ---------- ----------- Net sales $ 207,623 $ 196,602 $ 397,789 $ 367,242 Cost of sales 92,068 83,976 175,693 161,743 Selling & administrative expenses 87,377 84,499 170,168 159,232 Operating profit 28,178 28,127 51,928 46,267 Interest expense - net (3,032) (3,408) (5,982) (7,223) Other income - net 747 166 1,230 265 Income before income taxes 25,893 24,885 47,176 39,309 Income taxes 8,415 8,212 15,332 12,972 Net income $ 17,478 $ 16,673 $ 31,844 $ 26,337 Return on sales 8% 8% 8% 7% Return on average shareholders' equity 16% 19% 15% 16% Average common shares outstanding (000's) 36,320 35,372 36,273 34,970 Average common shares and common share equivalents (000's) 37,146 36,475 37,173 36,053 Per share: Basic earnings $ .48 $ .47 $ .88 $ .75 Diluted earnings $ .47 $ .46 $ .86 $ .73 Dividends paid $ .16 $ .16 $ .32 $ .31
CONSOLIDATED BALANCE SHEET May 1, October 31 2005 2004 ---------- ---------- Cash and marketable securities $ 95,172 $ 60,579 Receivables 163,698 175,013 Inventories 87,289 85,330 Other current assets 45,136 43,350 Total current assets 391,295 364,272 Property, plant & equipment - net 113,123 111,607 Other assets 364,504 364,669 $ 868,922 $ 840,548 Notes payable and debt due within one year $ 27,834 $ 27,591 Accounts payable and accrued liabilities 158,689 169,319 Total current liabilities 186,523 196,910 Long-term debt 147,468 148,033 Other liabilities 102,831 92,272 Total shareholders' equity 432,100 403,333 $ 868,922 $ 840,548 Other information: Employees 3,555 3,544 Common shares outstanding (000's) 36,475 36,279 SECOND QUARTER PERIOD NORDSON CORPORATION Period Ending May 1, 2005 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands)
Second Quarter % Growth over 2004 ----------------------- ------------------------------------ SALES BY BUSINESS SEGMENT 2005 2004 Volume Currency Total ----------------------------------- ---------- ---------- ---------- ---------- ---------- Adhesive dispensing & nonwoven fiber systems $ 125,933 $ 121,797 0.2% 3.2% 3.4% Finishing & coating systems 34,856 29,140 16.7% 2.9% 19.6% Advanced technology systems 46,834 45,665 1.8% 0.8% 2.6% Total sales by business segment $ 207,623 $ 196,602 3.0% 2.6% 5.6%
Year-to-Date % Growth over 2004 ----------------------- ------------------------------------ SALES BY BUSINESS SEGMENT 2005 2004 Volume Currency Total ----------------------------------- ---------- ---------- ---------- ---------- ---------- Adhesive dispensing & nonwoven fiber systems $ 240,895 $ 227,898 1.9% 3.8% 5.7% Finishing & coating systems 68,544 58,340 14.4% 3.1% 17.5% Advanced technology systems 88,350 81,004 8.0% 1.1% 9.1% Total sales by business segment $ 397,789 $ 367,242 5.2% 3.1% 8.3%
Second Quarter Year-to-Date ----------------------- ----------------------- OPERATING PROFIT BY BUSINESS SEGMENT 2005 2004 2005 2004 ------------------------------------ ---------- ---------- ---------- ---------- Adhesive dispensing & nonwoven fiber systems $ 24,174 $ 24,867 $ 42,517 $ 39,669 Finishing & coating systems 267 (866) 962 (297) Advanced technology systems 9,482 10,893 16,344 15,892 Corporate (5,745) (6,767) (7,895) (8,997) Total operating profit by business segment $ 28,178 $ 28,127 $ 51,928 $ 46,267
Second Quarter % Growth over 2004 ----------------------- ------------------------------------ SALES BY GEOGRAPHIC REGION 2005 2004 Volume Currency Total ----------------------------------- ---------- ---------- ---------- ---------- ---------- United States $ 71,651 $ 64,433 11.2% - 11.2% Americas 13,630 12,856 3.1% 2.9% 6.0% Europe 76,574 73,925 -1.5% 5.1% 3.6% Japan 20,295 21,564 -8.1% 2.2% -5.9% Asia Pacific 25,473 23,824 4.9% 2.0% 6.9% Total Sales by Geographic Region $ 207,623 $ 196,602 3.0% 2.6% 5.6%
Year-to-Date % Growth over 2004 ----------------------- ------------------------------------ SALES BY GEOGRAPHIC REGION 2005 2004 Volume Currency Total ----------------------------------- ---------- ---------- ---------- ---------- ---------- United States $ 131,936 $ 122,346 7.8% - 7.8% Americas 28,184 22,332 22.9% 3.3% 26.2% Europe 147,402 139,800 -1.0% 6.4% 5.4% Japan 41,764 39,636 2.9% 2.5% 5.4% Asia Pacific 48,503 43,128 10.9% 1.6% 12.5% Total Sales by Geographic Region $ 397,789 $ 367,242 5.2% 3.1% 8.3%
Second Quarter Year-to-Date ----------------------- ----------------------- SELECTED SUPPLEMENTAL INFORMATION 2005 2004 2005 2004 ----------------------------------- ---------- ---------- ---------- ---------- Depreciation and amortization $ 6,395 $ 6,734 $ 12,782 $ 13,794 Capital expenditures $ 5,195 $ 2,369 $ 8,331 $ 4,873 Dividends paid $ 5,814 $ 5,451 $ 11,614 $ 10,802
SOURCE Nordson Corporation -0- 05/24/2005 /CONTACT: Derrick Johnson, Director, Corporate Communications of Nordson Corporation, +1-440-414-5639, or djohnson@nordson.com / /Web site: http://www.nordson.com /