WESTLAKE, OH – Nordson reported total fiscal second quarter sales were $529.5 million, down 3.9% year-over-year. Organic volumes fell approximately 3%, offset in part by growth from the first year effect of acquisitions of less than 1%. Currency translation compared to the prior year’s fiscal second quarter cost the firm approximately 1%.

Total net income for the quarter was $92.1 million, up 0.2% year-over-year. Operating profit was $125 million, down 3.1%.

Advanced technology solutions segment sales for the fiscal second quarter were $247.2 million, down 0.8% year-over-year. Operating profit for the segment for the period ended Apr. 30 was $58.7 million, an increase of 3.8% compared to the same period in 2019.

The unit includes Nordson Asymtek, Nordson Dage, Nordson Select, Nordson Sonoscan, Nordson YesTech, and Nordson March.

Industrial precision solutions sales decreased approximately 6% year-over-year, inclusive of a decrease in organic volume of approximately 4% and a decrease of 2% related to the unfavorable effects of currency translation compared to the prior year. Operating profit for the segment was $76.5 million, down 10.6%.

The second quarter’s acquisitive growth includes the fiscal 2019 acquisition of Optical Control. Sales volume increases in product lines serving medical end markets and fluid dispense product lines serving electronics end markets were offset by weakness in test and inspection product lines and fluid dispense product lines serving industrial end markets.

At the end of the fiscal second quarter, the company had a cash balance of $306 million, and the full $850 million available on its revolving credit facility.

Backlog at Apr. 30 was approximately $456 million, up 6% year-over-year. Impact from the acquisition of Optical Control was not significant.

Year to date, Nordson’s sales were $1 billion, down 2.4% year-over-year. Advanced Technology Solutions sales year to date were $478.3 million, a decrease of 1.1%. Industrial Precision Solutions year to date sales were $546.1 million, down 3.4%.

Total net income year to date was $144.1 million, an increase of 2.6% compared to the same period in 2019. Year to date operating profit was $91 million, down 6.5%.

Due to the uncertainties of the duration and impact of the Covid-19 pandemic, the company is suspending its previously announced annual guidance for fiscal 2020.

"Though our performance through the first half of the year has been solid considering the impact of Covid-19 on the global end markets we serve, and we have a strong backlog heading into the second half of the year, we have seen a softening in order trends over the last six weeks. This is a dynamic environment, making it difficult to accurately forecast the impact this pandemic will have on our business for the remainder of the fiscal year. We have a solid foundation, fortified by the diversity of our business and our strong balance sheet. We will stay focused on the health and safety of our employees and the success of our customers, and we will continue to progress our long-term strategic priorities of accelerating organic growth, diversifying through acquisition, leveraging the Nordson Business System and focusing on talent development."

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