nordson corp (NDSN) Key Developments
Nordson DAGE Opens New Expanded R&D Facility in Colchester
Feb 27 14
Nordson DAGE, a division of Nordson Corporation, has announced the opening of its new expanded R&D facility in Colchester, Essex, UK. The move to the new location in Phoenix Square, Colchester, had been planned in line with new R & D programs with subsequent headcount expansion to further drive Nordson DAGE's Bond Test and X-ray product development programs. The move has doubled the space and added important capability including a new cleanroom facility.
Nordson Mulls Acquisitions
Feb 26 14
Nordson Corporation (NasdaqGS:NDSN) intends to make acquisitions. Mike Hilton, President and Chief Executive Officer of the company said: “We supplement our organic growth with strategic acquisitions. Our track record is one of acquiring good companies, improving their performance, and fueling their growth. Recently we have done just that with our acquisitions in the medical space. We are in the midst of doing the same with the suite of companies we have acquired in our polymer product line. While the polymer product line has faced some short-term headwinds in terms of demand driven by market dynamics, we expect performance will improve steadily and contribute long-term value to shareholders. Overall, we continue to develop our acquisition pipeline, and we have the financial and organizational capacity to continue to add properties that fit our strategy. As we look at our operating performance, we still see opportunities to improve margins. Our continuous improvement initiatives expand engineering, operations, marketing, sales, and functional areas. We also continue to accelerate and institute best practices across the Company. We're making good progress but have additional opportunity, especially in the acquired properties. Finally our business continues to generate a high level of cash, which gives us the ability to continue our multi-faceted capital deployment strategy. In addition to funding organic growth initiatives and strategic acquisitions, our strategy includes returning capital directly to shareholders. We have increased our dividend on average 20% over the last three years as we move to a more reasonable pay-out ratio.”
Nordson Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended January 31, 2014; Provides Earnings Guidance for the Second Quarter of Fiscal 2014
Feb 25 14
Nordson Corporation reported unaudited consolidated earnings results for the first quarter ended January 31, 2014. For the quarter, the company reported net sales of $359,420,000 compared to $347,043,000 a year ago. Operating profit was $53,859,000 compared to $61,564,000 a year ago. Income before income taxes was $50,187,000 compared to $56,382,000 a year ago. Net income was $34,880,000 or $0.54 per basic and diluted share, compared to $42,011,000 or $0.65 per basic and diluted share, a year ago. Return on average shareholders' equity was 16% compared to 24% a year ago. Net cash provided by operating activities was $47,687,000 against $39,755,000 a year ago. Additions to property, plant and equipment was $7,891,000 against $7,524,000 a year ago. The sales improvement included a 6% increase related to the first year effect of acquisitions, a 1% decrease in organic volume, and a negative 1% impact related to the unfavorable effects of currency translation. EBITDA was $68 million. First quarter free cash flow before dividends was $40 million or 114% of net income again representing strong cash conversion.
For the second quarter of fiscal 2014, sales growth is expected to be in the range of 5% to 9% compared to the second quarter a year ago. This overall growth is inclusive of organic growth of 0% to 4%, and 5% growth from the first year effect of acquisitions. The effect of currency translation is expected to be immaterial as compared to the prior year's second quarter based on the current exchange rate environment. At the midpoint of this sales growth outlook, the company would expect to generate operating margin of approximately 22%. GAAP diluted earnings per share are expected to be in the range of $0.85 to $0.94. At the midpoint of the reach, diluted earnings per share would increase approximately 7% over the same period a year ago. The effect of currency translation is expected to be immaterial as compared to the prior year's second quarter based on the current exchange rate environment. And the midpoint of its revenue forecast, the company expects gross margin to be 56% and operating margin is forecast to be approximately 22% and equal to the second quarter, a year ago. The short-term charges for acquired inventory are immaterial in the second quarter. At the midpoint of the range, sequential incremental operating margin is approximately 66% reflecting strong leverage on the sequential sales forecast increase of 14%. The company is estimating second quarter interest expense of about $3.5 million and an effective tax rate of approximately 30.5%.
Nordson Corporation Releases New VersaPUR Adhesive Tank Melters
Feb 19 14
Nordson Corporation has released VersaPUR adhesive tank melters as its new moisture-curing reactive polyurethane, or PUR, adhesive system to facilitate and enable PUR adhesive use in manufacturing. The VersaPUR tank melter simplifies processing, clean-up and maintenance of moisture-curing reactive hot melt adhesive with a unique 'easy-to-clean' design. VersaPUR melters are ideal for use in a wide variety of assembly applications including edgebanding, profile wrapping, bookbinding and automotive subassembly. Smooth, non-stick release coated surfaces and a tiltable tank provide easy access for cleanup and maintenance. And, all components in contact with PUR offer easy access and quick disassembly to facilitate cleaning. User-friendly, intuitive graphic controls simplify programming and provide visibility of system status. VersaPUR adhesive tank melters features include: Easy-to-clean design and non-stick coated surfaces to simplify maintenance and operation; Graphical touch-screen controls to simplify programming and system monitoring; Intuitive melter control of relevant functions via Industrial PC; Optional sensor and warning for tank level; Integrated or external inert gas supply to produce inert gas blanket; A variety of precision, variable-speed gear pump options, with key-to-line availability; A choice of manual or automatic pressure controls.
Nordson Corporation, Q1 2014 Earnings Call, Feb 26, 2014
Feb 13 14
Nordson Corporation, Q1 2014 Earnings Call, Feb 26, 2014