Nordson Corporation Announces Third Quarter Results

WESTLAKE, Ohio, Aug. 23 /PRNewswire-FirstCall/ -- Nordson Corporation today announced sales, earnings and earnings per share for the third quarter, which ended July 31, 2007. Worldwide sales for the quarter reached a record $257.7 million, a 14 percent increase over the same period last year. The growth consisted of 9 percent from acquisitions, 3 percent from core volume growth, and 2 percent from favorable currency effects.

Third quarter sales volume was up 26 percent in the Advanced Technology Systems segment. In addition, the Industrial Coating and Automotive Systems segment achieved a third quarter sales volume increase of 14 percent. This newly named segment combines the segment formerly known as Finishing and Coating Systems with the Automotive unit of the Adhesive Dispensing Systems segment. The Adhesive Dispensing Systems segment (now excluding Automotive) showed a volume increase of 4 percent. All prior year results are adjusted to reflect the new segments.

Third quarter sales volume increased in all geographies, with volume increases of 32 percent in the Americas, 15 percent in Japan, 11 percent in the United States, 10 percent in the Asia Pacific region and 9 percent in Europe.

Backlog at the end of the third quarter was approximately $115 million, up more than $22 million from the same period last year.

Fully diluted earnings per share for the third quarter were $.72. This compares to fully diluted earnings per share from continuing operations of $.77 last year and $.72 including discontinued operations. Prior year results include a nonrecurring tax refund that contributed $.09 to earnings per share. Without last year's tax refund, current year earnings per share are up 6 percent over prior year results from continuing operations and up 14 percent over prior year results including discontinued operations.

For the first nine months of fiscal 2007, sales were a record $702.9 million, an 8 percent increase over the same period of 2006. Sales growth consisted of 6 percent from acquisitions and 3 percent from favorable currency effects; core volume was down 1 percent. Year-to-date earnings per share on a diluted basis were $1.79, compared with $1.99 from continuing operations and $1.84 including discontinued operations during the same period last year.

"Nordson had a strong third quarter exceeding the consensus of investment analysts and our own range of earnings guidance" said Edward Campbell, chairman and chief executive officer. "I am pleased with the fact that the 14- percent increase in sales is coming from solid growth across all of our segments and geographies. Furthermore, the strength in the quarter's earnings was masked by a $.05 per share current period charge from acquisition accounting related to acquired inventory. Also, the restructuring of our Industrial Coating and Automotive segment continues to yield benefits, with operating profit margins for the quarter of 13 percent, as compared to 9 percent in last year's third quarter. Looking forward, lead by recent acquisitions, our order rates continue to reflect strong global demand, with orders in the 12-week period ending August 19 increasing by 12 percent in constant currency over the prior year," Campbell said.

"Continuing Nordson's pursuit of growth markets, we are very pleased to announce today, in a separate, release our acquisition of TAH Industries. TAH's capabilities align well with our strategic plans for the EFD business," Campbell added.

Nordson will broadcast its third quarter conference call on the investor relations page of its Web site, http://www.nordson.com/, on Friday, August 24, 2007, at 8:30 a.m. EDT. For persons unable to listen to the live broadcast, a replay will be available for 14 days after the event. Information about Nordson's investor relations and shareholder services is available from Barbara Price, manager of shareholder relations, by calling [phone].

Except for historical information and comparisons contained herein, statements included in this release may constitute "forward-looking statements," as defined by The Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors, as discussed in the company's filings with the Securities and Exchange Commission that could cause actual results to differ.

A summary of sales, income and earnings is presented in the attached tables.

Nordson Corporation is one of the world's leading producers of precision dispensing equipment that applies adhesives, sealants and coatings to a broad range of consumer and industrial products during manufacturing operations. The company also manufactures equipment used in the testing and inspection of electronic components as well as technology-based systems used for curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has more than 3,900 employees worldwide, and direct operations and sales support offices in 30 countries.

Contact: Shelly Peet, Vice President, Chief Information Officer Phone: [phone] E-mail:[e-mail] CORPORATION FINANCIAL HIGHLIGHTS (Dollars in thousands except for per-share amounts) THIRD QUARTER PERIOD Period Ending July 31, 2007 (Unaudited) CONSOLIDATED STATEMENT OF INCOME Third Quarter Year-to-Date 2007 2006 2007 2006 Net sales $257,713 $225,518 $702,881 $650,709 Cost of sales 113,005 97,226 308,638 277,712 Selling & administrative expenses 103,729 91,649 290,621 266,808 Operating profit 40,979 36,643 103,622 106,189 Interest expense - net (5,579) (1,788) (14,396) (8,128) Other income (expense) - net 531 273 2,241 (415) Income before income taxes 35,931 35,128 91,467 97,646 Income taxes 11,410 8,538 30,409 29,457 Income from continuing operations 24,521 26,590 61,058 68,189 Loss from discontinued operations, net of tax - (1,776) - (5,377) Net income $24,521 $24,814 $61,058 $62,812 Continuing operations return on sales 10% 12% 9% 10% Continuing operations return on average shareholders' equity 20% 27% 18% 25% Average common shares outstanding (000's) 33,611 33,597 33,521 33,337 Average common shares and common share equivalents (000's) 34,215 34,460 34,159 34,215 Per share: Basic earnings from continuing operations $.73 $.79 $1.82 $2.04 Basic earnings from discontinued operations - (.05) - (.16) Total $.73 $.74 $1.82 $1.88 Diluted earnings from continuing operations $.72 $.77 $1.79 $1.99 Diluted earnings from discontinued operations - (.05) - (.15) Total $.72 $.72 $1.79 $1.84 Dividends paid $.175 $.17 $.525 $.50 CONSOLIDATED BALANCE SHEET July 31 October 31 2007 2006 Cash and marketable securities $30,930 $48,868 Receivables 198,028 190,459 Inventories 116,404 83,688 Other current assets 31,429 24,289 Total current assets 376,791 347,304 Property, plant & equipment - net 119,352 105,415 Other assets 643,520 370,171 $1,139,663 $822,890 Notes payable and debt due within one year $309,730 $70,188 Accounts payable and accrued liabilities 171,907 171,137 Total current liabilities 481,637 241,325 Long-term debt 22,840 47,130 Other liabilities 133,187 103,907 Total shareholders' equity 501,999 430,528 $1,139,663 $822,890 Other information: Employees 3,922 3,645 Common shares outstanding (000's) 33,760 33,411 NORDSON CORPORATION FINANCIAL HIGHLIGHTS (Dollars in thousands) THIRD QUARTER PERIOD Period Ending July 31, 2007 (Unaudited) Third Quarter % Growth over 2006 SALES BY BUSINESS SEGMENT 2007 2006 Volume Currency Total Adhesive dispensing systems $127,754 $119,412 3.5% 3.5% 7.0% Industrial coating & automotive systems 49,857 42,986 13.9% 2.1% 16.0% Advanced technology systems 80,102 63,120 25.8% 1.1% 26.9% Total sales by business segment $257,713 $225,518 11.8% 2.5% 14.3% Third Quarter OPERATING PROFIT BY BUSINESS SEGMENT 2007 2006 Adhesive dispensing systems $29,751 $26,071 Industrial Coating & Automotive Systems 6,440 3,771 Advanced technology systems 11,315 14,944 Corporate (6,527) (8,143) Total operating profit by business segment $40,979 $36,643 Third Quarter % Growth over 2006 SALES BY GEOGRAPHIC REGION 2007 2006 Volume Currency Total United States $80,935 $73,026 10.8% - 10.8% Americas 21,352 15,756 32.1% 3.4% 35.5% Europe 92,462 80,329 8.6% 6.5% 15.1% Japan 22,069 20,050 15.2% -5.1% 10.1% Asia Pacific 40,895 36,357 9.9% 2.6% 12.5% Total Sales by Geographic Region $257,713 $225,518 11.8% 2.5% 14.3% Third Quarter SELECTED SUPPLEMENTAL INFORMATION 2007 2006 Depreciation and amortization $7,597 $5,674 Capital expenditures $6,470 $2,997 Dividends paid $5,876 $5,720 Year-to-Date % Growth over 2006 SALES BY BUSINESS SEGMENT 2007 2006 Volume Currency Total Adhesive dispensing systems $361,449 $350,787 -1.1% 4.1% 3.0% Industrial coating & automotive systems 127,443 122,677 1.6% 2.3% 3.9% Advanced technology systems 213,989 177,245 19.3% 1.4% 20.7% Total sales by business segment $702,881 $650,709 5.0% 3.0% 8.0% Year-to-Date OPERATING PROFIT BY BUSINESS SEGMENT 2007 2006 Adhesive dispensing systems $82,498 $79,112 Industrial Coating & Automotive Systems 10,465 3,142 Advanced technology systems 27,011 43,337 Corporate (16,352) (19,402) Total operating profit by business segment $103,622 $106,189 Year-to-Date % Growth over 2006 SALES BY GEOGRAPHIC REGION 2007 2006 Volume Currency Total United States $217,377 $213,090 2.0% - 2.0% Americas 52,967 49,260 6.6% 0.9% 7.5% Europe 257,943 230,258 4.0% 8.0% 12.0% Japan 65,147 60,152 10.6% -2.3% 8.3% Asia Pacific 109,447 97,949 9.4% 2.3% 11.7% Total Sales by Geographic Region $702,881 $650,709 5.0% 3.0% 8.0% Year-to-Date SELECTED SUPPLEMENTAL INFORMATION 2007 2006 Depreciation and amortization $20,326 $16,872 Capital expenditures $25,689 $10,600 Dividends paid $17,593 $16,683