Nordson releases 3Q FY 2019 results

Sales were USD 560 million compared to the prior year’s third quarter sales of USD 581 million, a decrease of 4% that reflects decreases of 2% organic volume and 2% related to the unfavorable effects of currency translation. Growth in the quarter related to the first-year effect of the fiscal 2018 acquisition of Clada Medical Devices; the 2019 acquisition of Optical Control GmbH was not significant. In the third quarter of fiscal year 2019, reported operating profit was USD 130 million, net income was USD 94 million, and GAAP diluted earnings per share were USD 1.62. These results include approximately USD 1.4 million of one-time charges associated with restructuring and the step-up in value of acquired inventory. Prior year third quarter3Q operating profit, net income and GAAP diluted earnings per share were USD 138 million, USD 95 million and USD .61, respectively. Prior year results include approximately USD 1.5 million of restructuring charges. Michael F. Hilton, President and CEO through July 31, 2019, and now senior advisor to the company, said, “The third quarter was weaker than expected, primarily impacted by the ongoing uncertainty related to the international trade dispute and its effect on customer investments. The softness in product lines serving electronics end markets and those within the Industrial Coatings Segment offset solid organic growth in our Adhesives Dispensing segment and the non-electronics product lines within the Advanced Technology segment. The Industrial Coatings segment sales volume was impacted by some customers moving deliveries into the fourth quarter, so we are expecting a strong fourth quarter from this segment. Even with this decline in total company sales in the quarter and the pressure from tariffs, the Nordson team held adjusted operating margin, which excludes one-time charges in both years, equal to the prior year.” In regard to the outlook for full year fiscal 2019, the company now expects flat to modest organic sales growth and unfavorable foreign currency effects of approximately 2% on sales as compared to the prior year. The company will remain focused on continuous improvement initiatives to offset costs and weaker than expected sales growth in order to hold or modestly improve operating margin and EBITDA margin against prior year’s performance. A full report including segment results is available on the company’s website at www.nordson.com