© evertiq Electronics Production | May 22, 2020
Nordson delivers solid quarter considering COVID-19's impact on global end markets
Nordson Corporation reported second quarter sales of USD 529 million, a 4% decrease compared to the prior year’s second quarter sales of USD 551 million.
During the second quarter of fiscal year 2020, reported operating profit was USD 125 million, net income was USD 92 million. Prior year’s second quarter sales, operating profit, net income were USD 551 million, USD 129 million and USD 92 million respectively. “In the second quarter, our team focused on two critical priorities – protecting the health and safety of our employees and responding to the needs of our customers. I am so thankful for their incredible commitment. One of the core strengths of Nordson is the diversity of the end markets and geographies we serve, and this diversity clearly contributed to our performance in the quarter,” says Sundaram Nagarajan, Nordson President and CEO, in a press release The backlog for the quarter ended April 30, 2020, was approximately USD 456 million, an increase of 6% compared to the same period a year ago. The company states that the impact from the fiscal 2019 acquisition of Optical Control GmbH was not significant. However, due to the uncertainties of the duration and impact of the COVID-19 pandemic, the company is suspending its previously announced annual guidance for fiscal 2020. “Though our performance through the first half of the year has been solid considering the impact of COVID-19 on the global end markets we serve, and we have a strong backlog heading into the second half of the year, we have seen a softening in order trends over the last six weeks. This is a dynamic environment, making it difficult to accurately forecast the impact this pandemic will have on our business for the remainder of the fiscal year. We have a solid foundation, fortified by the diversity of our business and our strong balance sheet. We will stay focused on the health and safety of our employees and the success of our customers, and we will continue to progress our long-term strategic priorities of accelerating organic growth, diversifying through acquisition, leveraging the Nordson Business System and focusing on talent development,” Nagarajan concludes.