Nordson reports record Q4
Dec 19, 2007
- Fourth Quarter Sales Grow 20.4 Percent to Record $290.8 Million
- Fourth Quarter Operating Profit Grows 17.1 Percent
- Fiscal Year 2007 Sales Grow 11.4 Percent to Record $993.6 Million
- Outlook for Record First Quarter 2008 Revenue and EPS, with Each Growing at Least 20 Percent
Nordson Corporation (Nasdaq: NDSN) reported record sales and earnings for the fourth quarter which ended October 31, 2007. Sales for the fourth quarter reached $290.8 million, a 20.4 percent increase over sales for the same period of 2006. Acquisitions accounted for 11.6 percent of the increase and core volume added 4.4 percent, with the remainder coming from the effects of currency translation.
On a diluted basis, fourth-quarter earnings per share were $.87, as compared to the prior year's $.87 from continuing operations and $.82 including discontinued operations. The current quarter's results include a charge of $.01 for short-term purchase accounting for acquired inventory.
"We had a very strong finish to the year, with record fourth quarter sales and operating profit," said Chairman and Chief Executive Officer Edward P. Campbell. "We generated significant volume growth during the quarter in all segments and each geographic region, grew operating profit by 17 percent and, after normalizing the effect on last year's earnings of non-recurring tax benefits, grew earnings per share from continuing operations by 14 percent."
Annual sales for the year, which ended October 31, 2007, reached a record $993.6 million, an 11.4 percent increase over sales of $892.2 million a year ago. Acquisitions accounted for 7.9 percent of the growth, currency accounted for 3.4 percent, and core growth accounted for 0.1 percent. Full year diluted earnings per share were $2.65 as compared to the prior year's $2.86 from continuing operations and $2.65 including discontinued operations. The current year's results include a charge of $.16 for short-term purchase accounting for acquired inventory. The effective tax rate in the current quarter is 33.2% as compared to the prior year's rate of 28.4% on continuing operations. The prior year rate benefited from certain non-recurring tax benefits. Excluding the $.16 short-term purchase accounting charge in the current year and applying the current year effective tax rate to prior year results, earnings per share from continuing operations increased 5.2 percent over 2006.
Cash flow from operations for the year, less capital expenditures and dividends, was $77.9 million or 7.8 percent of sales.
Campbell noted, "For the year, we achieved record sales and completed four acquisitions that bring us high performing businesses with market leading positions and significant technology. These new additions strengthen our base in important growth markets we have targeted for investment."