Diversified machinery maker Nordson Corp. (NDSN), Thursday reported a 24 percent increase in fourth-quarter profit, led by growth across all segments and key geographies. Both earnings and sales for the quarter topped Street estimates.
Moving forward, Nordson provided a strong sales outlook for the first quarter banking on emerging markets. Nevertheless, the company cited recession in Europe and the flat-growth expectations from North America as causes for concern.
CEO Michael Hilton said, "Solid demand in our end markets along with our global team's ability to meet customer needs generated another quarter of very strong results."
"Sales expanded robustly as customers continued to respond to our combination of precision technology solutions, application expertise and direct global service..," Hilton added.
Nordson makes specialized equipment to apply adhesives, sealants and coatings on a wide array of products, such as boxes, baby diapers, semiconductors and electronic circuits.
During the quarter, sales in Adhesive Dispensing Systems jumped 32.4 percent from last year. Volumes spiked 36 percent on growth in both consumer non-durable and durable end markets.
Advanced Technology Systems sales grew 27 percent, with volumes up 28 percent, as demand rose for dispensing and inspection products in electronics end markets. Sales at Industrial Coating Systems surged 45 percent.
Growth was seen across the U.S., Japan, and Asia Pacific, while Europe indicated a modest rise.
Overall, Nordson reported fourth-quarter sales of $439 million, up 33 percent from $331 million a year ago. Analysts on consensus estimated revenues of $418.02 million for the quarter.
Growth included a 19 percent increase in organic volume and 16 percent from acquisitions, while currency translation had a negative impact of 2 percent.
The Westlake, Ohio-based company posted quarterly net income of $68 million or $1.04 per share, compared with $55 million or $0.81 per share a year ago.
Excluding items, adjusted earnings for the quarter totaled $1.07 per share, compared with $0.86 per share in the prior year. Analysts expected earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude special items.
For the first quarter, Nordson expects net earnings of $0.63 to $0.70 per share and sales of $343 million to $354 million. Analysts currently expect earnings of $0.76 per share on revenues of $340.87 million.
Sales guidance reflects a growth of 24 percent to 28 percent over the same period last year.
NDSN closed Thursday at $61.97, down 0.03%, on the Nasdaq.
by RTT Staff Writer
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