EX-99.1 2 nc8320ex991.htm EXHIBIT 99.1

Exhibit 99.1

Message

FOR IMMEDIATE RELEASE

NORDSON CORPORATION REPORTS FOURTH-QUARTER FINANCIAL RESULTS; ACHIEVES RECORD 2006 FISCAL YEAR SALES AND EARNINGS PER SHARE

 

•

Worldwide Fourth-Quarter Sales Reach Record $241.5 Million

 

 

 

 

•

Fourth-Quarter Earnings Per Share Increase to Record $.82

 

 

 

 

•

2006 Fiscal Year Sales Grow 7 Percent to Record $892.2 Million

 

 

 

 

•

2006 Fiscal Year Earnings Per Share Reach $2.65

WESTLAKE, Ohio – December 19, 2006 – Nordson Corporation (Nasdaq:NDSN) today reported record sales and earnings for the fourth quarter, which ended October 31, 2006.  Sales for the fourth quarter reached $241.5 million, a 1 percent increase over sales of  $238.9 million for the same period of 2005. Favorable currency effects accounted for the majority of the increase. All sales and volume amounts for 2006 and prior periods exclude revenue associated with Nordson’s Fiber Systems Group, which was sold in October 2006.

On a diluted basis, fourth-quarter earnings per share from continuing operations were $.87, as compared to the prior year’s $.84. Reflecting the fourth-quarter 2006 sale of the Fiber Systems Group, diluted fourth-quarter earnings per share from discontinued operations were a loss of $.05, as compared to the prior year’s loss of $.04. This after-tax result reflects the operational results for the quarter combined with the one-time effect of the business sale.

Fourth-quarter sales volume for the Finishing and Coating Systems segment was up 11 percent. Volume in the Advanced Technology Systems segment was up 3 percent. Volume was down 4 percent in the Adhesive Dispensing Systems segment.

On a geographic basis, fourth-quarter volume was up 10 percent in the Asia Pacific region, 2 percent in Europe and 1 percent in Japan. Volume was down in the United States and the Americas by 4 percent and 9 percent, respectively.


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Nordson Corporation Reports Fourth-Quarter Financial Results
December 19, 2006
Page 2 of 3

Annual sales for the fiscal year, which ended October 31, 2006, were a record $892.2 million, a 7 percent increase from fiscal 2005 sales of $832.2 million. Volume gains of 8 percent were offset by unfavorable currency effects of 1 percent. Full year diluted earnings per share from continuing operations were a record $2.86, compared to $2.31 in 2005. Diluted earnings per share from discontinued operations for the year were a loss of $.21, as compared to a loss of $.17 in 2005.

Backlog at year end was approximately $69 million, compared with $75 million for the same period of the prior year. These backlog amounts are calculated at 2006 exchange rates and exclude the Fiber Systems Group.

“I am pleased by Nordson’s strong performance in fiscal year 2006, with both our sales volume and earnings per share reaching record levels,” said Edward P. Campbell, chairman and chief executive officer.

“Though our Advanced Technology segment grew at a decelerated rate in the fourth quarter, the segment performed exceptionally well in fiscal 2006, growing 20 percent,” Campbell said. “I am encouraged by the fourth quarter performance of our Finishing and Coating Systems segment, which grew 11 percent. In addition, we made significant progress in improving the profitability of the Finishing businesses.”

“With the sale of the Fiber Systems Group, we expect improved operating margins in our Adhesive Dispensing Systems segment in 2007 and beyond,” Campbell added.

Nordson will broadcast its fourth-quarter conference call on the investor relations page of its Web site, www.nordson.com, on Wednesday, December 20, 2006 at 8:30 a.m. EST. 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 Barbara Price, manager, shareholder relations, at (440) 414-5344.


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Nordson Corporation Reports Fourth-Quarter Financial Results
December 19, 2006
Page 3 of 3

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 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 more than 3,600 employees worldwide, and direct operations and sales support offices in 30 countries.

###

Contact:

Derrick Johnson, Director, Corporate Communications

Phone:

(440) 414-5639

E-mail:

djohnson@nordson.com

A summary of sales, income and earnings is presented in the attached tables.


FOURTH QUARTER PERIOD
Period Ending October 31, 2006
(Unaudited)

NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)

CONSOLIDATED STATEMENT OF INCOME

 

 

Fourth Quarter

 

Year-to-Date

 

 

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

Net sales

 

$

241,512

 

$

238,867

 

$

892,221

 

$

832,179

 

Cost of sales

 

 

102,088

 

 

106,646

 

 

379,800

 

 

362,824

 

Selling & administrative expenses

 

 

97,998

 

 

88,366

 

 

364,806

 

 

338,657

 

 

 

 

 

 

 

Operating profit

 

 

41,426

 

 

43,855

 

 

147,615

 

 

130,698

 

Interest expense - net

 

 

(2,022

)

 

(3,229

)

 

(10,150

)

 

(11,999

)

Other income (expense) - net

 

 

(616

)

 

393

 

 

(1,031

)

 

1,586

 

 

 

 

 

 

 

Income before income taxes

 

 

38,788

 

 

41,019

 

 

136,434

 

 

120,285

 

Income taxes

 

 

9,310

 

 

11,725

 

 

38,767

 

 

35,775

 

 

 

 

 

 

 

Income from continuing operations

 

 

29,478

 

 

29,294

 

 

97,667

 

 

84,510

 

Loss from discontinued operations, net of tax

 

 

(1,692

)

 

(1,391

)

 

(7,069

)

 

(6,172

)

 

 

 

 

 

 

Net income

 

$

27,786

 

$

27,903

 

$

90,598

 

$

78,338

 

 

 

 

 

 

 

Continuing operations return on sales

 

 

12

%

 

12

%

 

11

%

 

10

%

Continuing operations return on average shareholders’ equity

 

 

28

%

 

31

%

 

26

%

 

21

%

Average common shares outstanding (000’s)

 

 

33,390

 

 

34,119

 

 

33,365

 

 

35,718

 

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

 

 

34,015

 

 

34,919

 

 

34,180

 

 

36,527

 

Per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings from continuing operations

 

$

.88

 

$

.86

 

$

2.93

 

$

2.37

 

Basic earnings from discontinued operations

 

$

(.05

)

$

(.04

)

$

(.21

)

$

(.18

)

 

 

 

 

 

 

Total

 

$

.83

 

$

.82

 

$

2.72

 

$

2.19

 

Diluted earnings from continuing operations

 

$

.87

 

$

.84

 

$

2.86

 

$

2.31

 

Diluted earnings from discontinued operations

 

$

(.05

)

$

(.04

)

$

(.21

)

$

(.17

)

 

 

 

 

 

 

Total

 

$

.82

 

$

.80

 

$

2.65

 

$

2.14

 

Dividends paid

 

$

.17

 

$

.165

 

$

.67

 

$

.645

 


FOURTH QUARTER PERIOD
Period Ending October 31, 2006
(Unaudited)

NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands except for per-share amounts)

CONSOLIDATED BALANCE SHEET

 

 

October 31,
2006

 

October 30,
2005

 

 

 

 

 

Cash and marketable securities

 

$

48,868

 

$

11,533

 

Receivables

 

 

190,459

 

 

177,340

 

Inventories

 

 

83,688

 

 

80,588

 

Other current assets

 

 

24,289

 

 

36,353

 

Current assets of discontinued operations

 

 

—  

 

 

5,902

 

 

 

 

 

Total current assets

 

 

347,304

 

 

311,716

 

Property, plant & equipment - net

 

 

105,415

 

 

108,306

 

Other assets

 

 

370,171

 

 

359,778

 

Long-term assets of discontinued operations

 

 

—  

 

 

8,726

 

 

 

 

 

 

 

$

822,890

 

$

788,526

 

 

 

 

 

Notes payable and debt due within one year

 

$

70,188

 

$

72,079

 

Accounts payable and accrued liabilities

 

 

171,137

 

 

173,109

 

Current liabilities of discontinued operations

 

 

—  

 

 

4,886

 

 

 

 

 

Total current liabilities

 

 

241,325

 

 

250,074

 

Long-term debt

 

 

47,130

 

 

101,420

 

Other liabilities

 

 

103,907

 

 

106,120

 

Total shareholders’ equity

 

 

430,528

 

 

330,912

 

 

 

 

 

 

 

$

822,890

 

$

788,526

 

 

 

 

 

Other information:

 

 

 

 

 

 

 

Employees

 

 

3,645

 

 

3,653

 

Common shares outstanding (000’s)

 

 

33,411

 

 

32,911

 


FOURTH QUARTER PERIOD
Period Ending October 31, 2006
(Unaudited)

NORDSON CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands)

 

 

Fourth Quarter

 

% Growth over 2005

 

Year-to-Date

 

% Growth over 2005

 

 

 

 

 

 

 

SALES BY BUSINESS SEGMENT

 

2006

 

2005

 

Volume

 

Currency

 

Total

 

2006

 

2005

 

Volume

 

Currency

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

Adhesive dispensing systems

 

$

137,042

 

$

140,741

 

 

-4.0

%

 

1.4

%

 

-2.6

%

$

507,959

 

$

494,682

 

 

4.5

%

 

-1.8

%

 

2.7

%

Finishing & coating systems

 

 

42,457

 

 

37,999

 

 

11.1

%

 

0.6

%

 

11.7

%

 

145,004

 

 

137,690

 

 

6.4

%

 

-1.1

%

 

5.3

%

Advanced technology systems

 

 

62,013

 

 

60,127

 

 

2.6

%

 

0.5

%

 

3.1

%

 

239,258

 

 

199,807

 

 

20.1

%

 

-0.4

%

 

19.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales by business segment

 

$

241,512

 

$

238,867

 

 

0.1

%

 

1.0

%

 

1.1

%

$

892,221

 

$

832,179

 

 

8.5

%

 

-1.3

%

 

7.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Year-to-Date

 

 

 

 

 

OPERATING PROFIT BY BUSINESS SEGMENT

 

 

2006

 

 

2005

 

 

2006

 

 

2005

 

 

 

 

 

 

Adhesive dispensing systems

 

$

30,829

 

$

34,661

 

$

110,604

 

$

106,584

 

Finishing & coating systems

 

 

6,286

 

 

835

 

 

8,765

 

 

1,407

 

Advanced technology systems

 

 

13,639

 

 

14,252

 

 

56,976

 

 

41,523

 

Corporate

 

 

(9,328

)

 

(5,893

)

 

(28,730

)

 

(18,816

)

 

 

 

 

 

 

Total operating profit by business segment

 

$

41,426

 

$

43,855

 

$

147,615

 

$

130,698

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

% Growth over 2005

 

Year-to-Date

 

% Growth over 2005

 

 

 

 

 

 

 

SALES BY GEOGRAPHIC REGION

 

2006

 

2005

 

Volume

 

Currency

 

Total

 

2006

 

2005

 

Volume

 

Currency

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

78,152

 

$

81,434

 

 

-4.0

%

 

—  

 

 

-4.0

%

$

291,242

 

$

279,074

 

 

4.4

%

 

—  

 

 

4.4

%

Americas

 

 

15,668

 

 

17,051

 

 

-9.3

%

 

1.2

%

 

-8.1

%

 

64,928

 

 

59,400

 

 

6.8

%

 

2.5

%

 

9.3

%

Europe

 

 

84,029

 

 

79,340

 

 

1.8

%

 

4.1

%

 

5.9

%

 

314,287

 

 

298,692

 

 

7.6

%

 

-2.4

%

 

5.2

%

Japan

 

 

26,830

 

 

27,649

 

 

1.4

%

 

-4.4

%

 

-3.0

%

 

86,982

 

 

89,757

 

 

3.8

%

 

-6.9

%

 

-3.1

%

Asia Pacific

 

 

36,833

 

 

33,393

 

 

9.5

%

 

0.8

%

 

10.3

%

 

134,782

 

 

105,256

 

 

27.4

%

 

0.7

%

 

28.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Sales by Geographic Region

 

$

241,512

 

$

238,867

 

 

0.1

%

 

1.0

%

 

1.1

%

$

892,221

 

$

832,179

 

 

8.5

%

 

-1.3

%

 

7.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Year-to-Date

 

 

 

 

 

SELECTED SUPPLEMENTAL INFORMATION

 

 

2006

 

 

2005

 

 

2006

 

 

2005

 

 

 

 

 

 

Depreciation and amortization

 

$

6,438

 

$

6,015

 

$

23,310

 

$

23,459

 

Capital expenditures

 

$

3,010

 

$

4,544

 

$

13,610

 

$

15,379

 

Dividends paid

 

$

5,689

 

$

5,969

 

$

22,372

 

$

23,378