Nordson announces record Q2 results
May 29, 2006
Record sales continue for ninth straight quarter; record earnings per share continue for fifth straight quarter
- Worldwide sales increase pearly 12 percent to $231.8 Million
- Earnings per share increase 36 percent, reaching a record $.64
- Advanced Technology Systems segment sales volume grows by 33 percent
- Asia Pacific Region sales volume grows by 52 percent
Nordson Corporation (Nasdaq: NDSN) announced record sales, earnings and earnings per share for the second quarter, which ended April 30, 2006. Worldwide sales for the quarter reached a record $231.8 million, an 11.7 percent increase over the same period last year. Volume gains of 15.4 percent were offset by negative currency effects of 3.7 percent.
On a diluted basis, earnings per share for the quarter were $.64, compared with $.47 for the same period of 2005 - a 36 percent increase. Included in second quarter operating expenses was a charge of $1 million, or $.02 per share, related to the adoption in the first quarter of new accounting guidelines for the expensing of stock options. In addition, charges related to the restructuring of the Finishing and Coating Systems segment amounted to approximately $500,000, while restructuring charges for the Adhesive Dispensing and Nonwoven Fiber Systems segment totaled approximately $400,000, for a combined $.02 per share.
Second quarter sales volume for the Advanced Technology Systems segment was up 33 percent. Volume was up 11 percent in the Adhesive Dispensing and Nonwoven Fiber Systems segment and up 7 percent in the Finishing and Coating Systems segment.
On a geographic basis, second quarter sales volume was up in all areas, with the Asia Pacific region seeing volume increases of 52 percent. Volume was up 27 percent in the Americas, 16 percent in Japan, 12 percent in Europe and 4 percent in the United States.
Backlog at the end of the second quarter was approximately $92 million, up more than $13 million since the beginning of the fiscal year, calculated at constant exchange rates.
For the first half of fiscal 2006, sales were a record $429.3 million, a 7.9 percent increase over the first half of 2005. Sales volume increased 11.5 percent, with unfavorable currency effects of 3.6 percent offsetting the gains. Year-to-date earnings per share on a diluted basis were a record $1.11, compared with $.86 for the same period last year.