Nordson Corp. (NDSN: Quote) Monday reported a bigger-than-expected decline in second-quarter earnings due to increased selling and other expenses and a slight drop in sales.
At the same time, Nordson, citing encouraging order rates, forecast a strong outlook for the third quarter, sending its shares up by about 3 percent in extended session on the Nasdaq.
Nordson makes products and systems for precision dispensing, testing and inspection, fluid management, among others.
Nordson saw a modest 1 percent decline in sales for the second quarter, on a 3 percent drop in volume and a 1 percent negative impact of currency translation.
The company said economic volatility in some end markets and geographies impacted results.
Sales in Adhesive Dispensing Systems segment fell 3 percent from last year, and a similar decline was seen at Industrial Coating Systems segment. Advanced Technology Systems segment sales was up 2.1 percent.
By region, sales in Europe slid 6.8 percent, and Asia Pacific sales slipped 3.6 percent, year-over-year. Sales in the U.S. meanwhile gained 8 percent.
Westlake, Ohio-based Nordson reported second-quarter net income of $52 million or $0.80 per share, down from $65 million or $0.95 per share last year.
Excluding items, earnings for the quarter were $55 million or $0.84 per share.
On average, 8 analysts polled by Thomson Reuters expected earnings of $0.87 per share. Analysts' estimates typically exclude special items.
Sales for the quarter were $315 million, compared to $319 million last year. Six analysts estimated revenues of $321.16 million.
Nordson expects third-quarter earnings of $0.96 to $1.04 per share and sales of $337 million to $349 million. Analysts currently expect $0.86 per share on sales of $325.96 million.
CEO Michael Hilton said, "Our current order rates are encouraging and exceed the levels we saw during the first half of our year, which are driving strong expectations for our third quarter."
"At the same time, uncertainties in the macroeconomic environment add a conservative view to the positive expectations we have for growth in future quarters...," added Hilton.
NDSN closed Monday on the Nasdaq at $49.00, up $0.80 or 1.66%. In after hours, the stock gained 2.76%.
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by RTT Staff Writer
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