WESTLAKE, OH -- Nordson today reported fiscal second quarter sales at its Advanced Technology Systems unit increased 23% year-over-year on broad-based higher demand.

The jump included a 20 percentage point increase in organic volume and a three percentage point increase related to the first-year effect of acquisitions.

Reported operating margin in the segment for the quarter ended Apr. 30 improved five percentage points from the prior year to 24% in the quarter. Operating revenue rose 58% to $38.7 million.

“The momentum in order rates and project activity we described earlier this year resulted in robust organic growth and significantly improved operating margin in the current quarter compared to the same period a year ago,” said Nordson president and chief executive Michael F. Hilton. “The growth was broad based with increased demand for automated dispensing and test and inspection solutions in electronic end-markets, as well as continued strength in fluid management components for medical and industrial end markets. Customers in Asia Pacific, Europe and the Americas drove the growth.”

The company's Adhesive Dispensing Systems unit saw organic sales volume increase nine percentage points from a year ago, with additional volume growth of less than one percentage point related to the first-year effect of the WAFO acquisition. Operating margin improved three percentage points to 28% percent in the quarter. Operating income rose 28% to $63 million.

“This is the fourth consecutive quarter of excellent organic growth in this segment,” said Hilton. “Growth in the current quarter was broad based as we generated strong organic growth in all product lines driven by consumer non-durable end markets. Geographically, Europe and the US led the growth.”

Nordson's Advanced Technology Systems unit includes Asymtek, Dage, YesTech and March, while its Adhesive Dispensing Systems business includes EFD, among other OEMs.

For the quarter ended Apr. 30, overall sales were $438 million, up 9% from the prior year, boosted by an 8 percentage point increase in organic volume and a two percentage point increase related to the first year effect of acquisitions, and a negative 1 percent impact related to the unfavorable effects of currency translation. Operating profit was $102 million, up from $76 million a year ago. Net income was $71 million, up from $49 million in 2015.

For its third fiscal quarter, sales are expected to increase 1% to 5% versus a year ago, with organic volume forecast to show a change of -1% to 3%, plus 3% growth on acquisitions, and a negative currency effect of 1%.

“Our current backlog, recent order rates and project timing lead us to forecast modest organic volume growth at the midpoint of our third quarter guidance,” said Hilton. “This outlook compares against a period of strong organic growth a year ago and is against a current backdrop of continuing weakness in the global macroeconomic environment. Beyond this near term view, we’re continuing to execute on activities we expect will drive value for shareholders over the long term. Specifically, we continue to focus on innovative products, tiering, new applications and emerging market penetration to drive growth. We’re also pleased to report that we're making solid progress on our previously announced margin enhancement initiative using tools within the Nordson Business System and we remain on track to meet our goal of 200 basis points improvement to fiscal 2015 normalized operating margin by the end of fiscal 2017.”

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