WESTLAKE, OH -- Nordson reported fiscal first-quarter sales at its Advanced Technology Systems fell 8% year-over-year as new revenue from acquisitions was not enough to overcome a 15% drop in organic volumes.

The firm said the unit's acquisitions of MatriX and Liquidyn boosted revenues by 7% in the quarter. Sales were also negatively impacted by a 3% loss tied to unfavorable currency translation.

The ATS unit had operating margins of 7%, or 9% if excluding approximately $2 million in one-time charges related to restructuring activities and short-term purchase accounting charges for acquired inventory, and currency effects.

“Current results in this segment are challenged in comparison to the prior year first quarter, where we delivered organic growth of 29%,” said CEO and president Michael Hilton. “Organic volume growth during the current quarter in our surface treatment and medical fluid management product lines was offset by softness in other product lines, largely related to electronics end-markets. We’re pleased by the performance of the Liquidyn and Matrix acquisitions in this segment, both of which are meeting our expectations.”

Nordson's overall January quarter sales were $372 million, down about 2% from the prior year. Volume rose 4%, primarily from acquisitions, offset by a 5% decrease due to unfavorable currency translation effects. Operating profit was $52 million, down from $63 million, and net income was $41 million, down from $43 million. Operating margin was 14%, or 17% excluding one-time charges and currency effects.

Adhesive Dispensing Systems' sales increased 12% from a year ago, 11% from organic growth and 1% on the first-year effect of the WAFO acquisition. Unfavorable currency translation reduced sales by 7%.

Nordson provided fiscal second-quarter guidance of 2 to 6% rise in sales from a year ago, including organic growth of 1 to 5%, plus 2% growth from first-year effects of acquisitions. Operating margin midpoint of the sales outlook is approximately 19%.

“Given our backlog and positive 12 week order rates for most of the last several weeks, we expect organic volume growth to be approximately 3% compared to the prior year at the midpoint of our second-quarter guidance. This is solid performance given continued softness in the global macroeconomic environment and reflects the solutions we bring to the diverse end markets we serve,” said Hilton.

Nordson is parent to Asymtek, Dage, YesTech, March, EFD and other leading electronics process and test equipment OEMs.

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