WESTLAKE, OH -- Nordson today reported fiscal third-quarter revenues at its Advanced Technology Systems unit increased 8% from a year ago, boosted by a 6% increase from acquisitions.

The company reported strong demand for surface treatment and test and inspection solutions in electronics end-markets and for fluid management components serving medical markets, offset in part by lower demand for dispensing solutions.

Still, management said concerns over economic conditions will prompt some changes to Advanced Technology's product lines. The company will also take other steps to contain costs.

For the quarter ended July 31, ATS had an operating margin of 24%, or 25% excluding one-time items. Currency effects compared to the prior year were negligible. The division is the parent to such electronics assembly and test suppliers as EFD, Nordson March, Dage and Yestech.

Overall sales for the period were $463 million, up 1% over the prior year. Organic sales were up 6%, acquisitions added another 2%, and currency translation cost the firm 7%. Operating profit was $103 million, down from $459 million, and net income was $69 million, down from $114 million.

Operating margin was 22%, up three percentage points from the second quarter.

 “Nordson delivered excellent organic growth of 6% in the third quarter compared to the prior year in a macroeconomic environment that remained challenging,” said president and chief executive Michael F. Hilton.

All segments and all geographies, with the exception of Japan, delivered organic sales volume growth in the third quarter compared to the same period a year ago. Adhesive Dispensing Systems increased 4%. Industrial Coating Systems organic sales volume increased 23% 

The company said its guidance midpoint for its fourth quarter is -7% to -3% compared to the prior year. The firm expects organic sales of -1% to +3%, and 1% growth related to the first year effect of acquisitions, and -7% currency translation effect based on the current exchange rate environment.

"Given our backlog and current order rates, organic growth is positive at the midpoint of our fourth quarter guidance, even in a soft macroeconomic environment and against challenging comparisons, and would result in full year organic growth of approximately 4%," Hilton said.

"Our own visibility over the longer term is also limited. Given this uncertain outlook, we are taking actions in areas we can control to improve normalized margins in 2016, independent of sales volume leverage. The actions taken in the third quarter to optimize certain Advanced Technology product lines are among the first of these steps. We also are implementing a more concentrated effort around multiple continuous improvement initiatives, accelerating footprint consolidation activities, limiting additions to headcount, and reducing other spending.”

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