WESTLAKE, OH – Nordson reported fiscal third quarter sales were $560 million, down 4% year-over-year.
These results include approximately $1.4 million of one-time charges associated with restructuring and the step-up in value of acquired inventory.
For the quarter ended July 31, net income was $94 million, down 1% compared to the fiscal third quarter of 2018. Operating profit was $130 million, a decrease of 4.4% year-over-year. EBITDA was $158 million, or 28% of sales, compared to EBITDA of $163 million in the prior-year quarter, or 28% of sales.
“The third quarter was weaker than expected, primarily impacted by the ongoing uncertainty related to the international trade dispute and its effect on customer investments,” said senior advisor Michael F. Hilton. “The softness in product lines serving electronics end markets and those within the Industrial Coatings Segment offset solid organic growth in our Adhesives Dispensing segment and the non-electronics product lines within the Advanced Technology segment.”
Adhesive Dispensing Systems sales increased 2%, inclusive of an increase in organic volume of 4% and a decrease of 2% related to the unfavorable effects of currency translation compared to the prior year.
Advanced Technology Systems sales decreased 5% compared to the prior year’s third quarter, inclusive of a decrease in organic volume of 4% and a decrease of 1% related to the unfavorable effects of currency translation compared to fiscal 2018.
Industrial Coating Systems sales decreased 18% compared to the prior year’s third quarter, inclusive of a decrease in organic volume of 17% and a decrease of 1% related to the unfavorable effects of currency translation.
Backlog for the quarter ended July 31 was $431 million, an increase of 3% compared to the same period a year ago.
For fiscal 2019, the company now expects flat to modest organic sales growth and unfavorable foreign currency effects of approximately 2% on sales compared to the prior year.
“As we approach the end of our fiscal year, the effect of recent macroeconomic trends has had a more significant impact than most anticipated, particularly on electronics end markets. That said, the strength of our position as a valued solutions provider to our customers, combined with the diversity of our end markets, gives us confidence we will continue to drive organic growth going forward.
“On August 1, we welcomed Sundaram Nagarajan as Nordson’s new president and chief executive officer. Naga hit the ground running, already traveling and getting to know our business. I believe he is the right fit to lead Nordson to continued success. It has been an honor to lead this great company, and I would like to thank our employees, shareholders and customers for their support over the past 10 years.”