U.S. Markets open in 4 hrs 58 mins

Nordson Reports In-Line Earnings in 2Q13

Zacks Equity Research

Nordson Corporation (NDSN) reported in-line results for the fiscal second quarter of 2013 (ended April 30). Non-GAAP earnings per share came in at 84 cents, same as the Zacks Consensus Estimate and the year-ago earnings.


Nordson Corporation reported net sales of $382.1 million in the quarter, up 21.2% year over year. The year-over-year growth was achieved by a 23.2% increase in volumes, offset partially by a 2.0% negative foreign currency translation impact.

Backlog exiting the quarter stood at $200 million, up 3% compared with the year-ago period while orders for the 12-week ended May 19, 2013 were down 2% over the same period a year-ago.

A brief discussion of revenue segments of Nordson Corporation has been provided below:

Adhesive dispensing systems revenue increased 26.9% year over year and represented 51.4% of total revenue in the quarter. Revenue from Advanced technology systems, roughly 34% of total revenue, grew 13.0% in the quarter while that from Industrial coating systems expanded by 22.5% and stood at 14.6% of total revenue.     

On a regional basis, revenue generated in the United States grew 34.1% year over year; the Americas by 39.4%; Europe by 8.5%; Japan by 5.4% and Asia Pacific by 22.1%.


Cost of sales in the fiscal second quarter went up 31.6% year over year and represented 43.2% of total revenue; up from 39.8% in the year-ago quarter. Selling and administrative expenses, as a percentage of total revenue, stood at 35.3%. Operating margin in the quarter was 21.5%, down from 24.4% in the year-ago quarter.

Balance Sheet

Exiting the fiscal second quarter 2013, Nordson Corporation had cash and marketable securities balance of $62.8 million, up from $54.7 million in the previous quarter. Long-term debt stood at $551.6 million up from $517.6 million in the sequential quarter.
Cash Flow

During the quarter, Nordson Corporation distributed roughly $10 million as dividend and repurchased shares worth $22 million. Free cash flow in the quarter was approximately $47 million.


For the fiscal third quarter of 2013, management of Nordson Corporation anticipates sales to range within $404-$419 million, up 6%-10% year over year. Organic growth is predicted to fall within the 0%-4% range while acquisitions are expected to have a 7% positive impact. Currency translation is likely to impact results negatively by 1%. Earnings per share are expected to be within the $1.00-$1.09 range.

Nordson Corporation is a $4.7 billion company, operating in the diversified machinery industry. The stock currently has a Zacks Rank #3 (Hold). Other stocks to watch out for in the industry are Graco Inc. (GGG), with a Zacks Rank #1 (Strong Buy) while Altra Holdings, Inc. (AIMC) and Colfax Corporation (CFX), each has a Zacks Rank #2 (Buy).

Read the Full Research Report on GGG

Read the Full Research Report on NDSN

Read the Full Research Report on AIMC

Read the Full Research Report on CFX

Zacks Investment Research

More From Zacks.com