WESTLAKE, IH -- Nordson reported second-quarter net income of $13.8 million on revenues of $189 million.

For the quarter ended April 30, sales dropped 36% year-over-year, and income fell 58%. Excluding restructuring charges, operating margin in the second quarter was 13%. Free cash flow increased 60% over the first quarter to $40 million, a level approximately equal to last year’s second quarter.

Nordson is the parent company of Asymtek, Dage, EFD, YesTech and other electronics manufacturing suppliers.

In a statement, chairman, president and chief executive Ed Campbell said, “Demand in semiconductor and electronics markets served by the Advanced Technology segment continued to be weak compared to a year ago, most notably in Asia Pacific."

For the quarter, the firm's Adhesive Dispensing unit's revenues were down 18.7% and Advanced Technology was down 41%. Sales in Europe, the company's largest region by revenues, was off 23%, the US was down 35% and Asia fell 36%.

Order rates for the 12-week period ended May 17, measured in constant currency, decreased 25% over the same period a year ago. 

Backlogs at the end of the second quarter were approximately $80 million, down 29% from last year and up 4% sequentially. "Average weekly-order volume during the past two and one-half months has increased 9 percent compared to the average in the first two months of the calendar year,” Campbell said.

The company guided for third-quarter sales of $192 million to $202 million. “We continue to operate the business under the assumption that a recovery will not occur in fiscal 2009,” said Campbell.

• Prev
• Next