Cellphone Market Drags Down Nordson in Q1 PDF Print E-mail
Written by Mike Buetow   
Wednesday, 26 February 2014 08:50

WESTLAKE, OH -- Nordson today said sales volume in its Advanced Technology Systems segment decreased 10% from a year ago as solid growth in test and inspection equipment was offset by softness in automated dispensing equipment. The unit reported operating income fell in half to $10.4 million on sales of $97.5 million for the period ended Jan. 31.

The pace of orders for some product lines slowed as the quarter progressed,” said Nordson president and chief executive Michael F. Hilton. “The long-term view for these markets continues to be positive." He said mobile devices and other niche electronics markets were slower during the period.

The ATS segment operating margin was 11% in the quarter, Hilton added.

Overall company sales for the quarter were up 4% to $359 million, on a 6 percentage point increase from acquisitions, offset by a one percentage point drop in organic volume, and a one percentage point loss due to currency effects. Operating profit was down 12.5% to $54 million, while net income was down 7% to $35 million.

“Nordson’s first quarter performance reflects our normal seasonality, lower demand in selected technology end markets, and regional variations in the pace of macroeconomic growth,” said Hilton. “We delivered very solid organic volume growth over the prior year’s first quarter in our consumer non-durable end markets, though this was offset primarily by softness in some applications related to electronics end-markets. Regionally, conditions were mixed, with organic volume growth in the US, Americas and Europe being offset by softness in Japan and Asia Pacific.”

Nordson guided for second quarter sales growth of 5% to 9%, including organic growth of 0% to 4% and 5% growth from the first-year effect of acquisitions.



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