Nordson Advanced Technologies Sales Slow in Q4 PDF Print E-mail
Written by Mike Buetow   
Thursday, 12 December 2013 09:06

WESTLAKE, OH -- Nordson today reported fourth-quarter net income of $60 million, down 11.8% year-over-year. For the period ended Oct. 31, sales were $411 million, down 6% from the prior year.

The conglomerate saw a 4% bump due to acquisitions, offset by a 9% decrease in volumes and a 1% loss related to unfavorable currency effects.

“Nordson’s fourth quarter results are in line with our expectations, reflecting a low-growth macroeconomic environment and comparisons to a period of very strong organic growth a year ago,” said president and chief executive Michael Hilton. “Despite the challenging macroeconomic conditions, Nordson delivered solid performance and our business continues to generate strong levels of cash, allowing us to continue our investment in several long term strategic growth and continuous improvement initiatives that should benefit future performance. Our global team also continued to execute in the areas of innovation, enhanced customer service, and operational excellence, including solid progress on the integration of recent acquisitions. We’re also encouraged by recent order rates, which began to gain momentum during the fourth quarter.”

The company's Advanced Technology Systems, which includes Dage, Asymtek, March and other leading suppliers, saw sales fall 14% from a year ago, as demand in the medical end-market was offset by softness in electronics. Operating margin was 21%.

Adhesive Dispensing Systems sales grew 3% over last year on the acquisition of Kreyenborg.

“We are encouraged by sequential sales and operating margin improvements in portions of the business,” said Hilton. “From the third to fourth quarter of fiscal 2013, Adhesive Dispensing sales grew 5% and operating margin improved by two percentage points to 28%, excluding the Kreyenborg acquisition. Though we did not see the same pattern within Advanced Technology, this is not atypical given the more seasonal nature of some of the segment’s semiconductor related end markets. We did continue to see solid customer bidding and quoting activity in this segment during the period, and order rates have gained momentum more recently.”

Sales for fiscal year 2013 were a record $1.5 billion, up 9% from 2012, boosted primarily by acquisitions. Operating profit was $324 million, down from $335 million, and net income was $222 million, down $3 million.

For the first quarter of fiscal 2014, sales are expected to be in the range of $362 million to $375 million,  a growth forecast of 4% to 8% over the first quarter a year ago. The company expects organic volumes to range from -1% to 3%, "

In the electronics market, semiconductor capital spending forecasts for the year are positive. In the medical space, demographic trends play to our strengths in dispensing devices and fluid management,” Hilton said.

 

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