SMT & Inspection | December 19, 2007
Nordson reports good results in Q4
The Nordson Group which owns Dage, Asymtek, EFD YesTech and other companies in the electronics industry has reported record sales and earnings for the fourth quarter which ended October 31, 2007.
Sales for the fourth quarter reached $290.8 million, a 20.4 percent increase over sales for the same period of 2006. Acquisitions accounted for 11.6 percent of the increase and core volume added 4.4 percent, with the remainder coming from the effects of currency translation. On a diluted basis, fourth-quarter earnings per share were $.87, as compared to the prior year's $.87 from continuing operations and $.82 including discontinued operations. The current quarter's results include a charge of $.01 for short-term purchase accounting for acquired inventory. Annual sales for the year, which ended October 31, 2007, reached a record $993.6 million, an 11.4 percent increase over sales of $892.2 million a year ago. Acquisitions accounted for 7.9 percent of the growth, currency accounted for 3.4 percent, and core growth accounted for 0.1 percent. Full year diluted earnings per share were $2.65 as compared to the prior year's $2.86 from continuing operations and $2.65 including discontinued operations. The current year's results include a charge of $.16 for short-term purchase accounting for acquired inventory. The effective tax rate in the current quarter is 33.2% as compared to the prior year's rate of 28.4% on continuing operations. The prior year rate benefited from certain non-recurring tax benefits. Excluding the $.16 short-term purchase accounting charge in the current year and applying the current year effective tax rate to prior year results, earnings per share from continuing operations increased 5.2 percent over 2006. Cash flow from operations for the year, less capital expenditures and dividends, was $77.9 million or 7.8 percent of sales.