SMT Process Equipment, Test Demand a Drag on Nordson's Q4 Sales
WESTLAKE, OH -- Nordson reported fiscal fourth-quarter sales slipped 5% year-over-year, weighed down by lower demand at its Advanced Technology Systems business unit.
For the quarter ended Oct. 31, sales were up 8% in the company's Adhesive Dispensing Systems segment, 7% organically, offset by a 10% decrease related to unfavorable currency translation.
Advanced Technology Systems' sales fell 7%, including an 11% decrease in organic volume, offset in part by a 4% increase related to first-year effects of the Liquidyn and MatriX acquisitions. Currency translation effects cost another 3% off the topline. The US and Europe saw improvement, but other regions experienced slower demand.
Operating margin was 17% in the quarter, or 18% on a normalized basis, which excludes one-time items related to restructuring activities and purchase accounting charges for acquired inventory.
“Organic growth in fluid management product lines, driven by strong demand in medical end markets, was offset by lower demand for electronic systems product lines,” said CEO and president Michael Hilton. “Results also were impacted by very challenging comparisons to the prior year fourth quarter, where we delivered organic volume growth of 21%.
Advanced Technology Systems includes Nordson's Dage, YesTech, Matrix, Asymtek, March and other companies.
Industrial Coating Systems' organic sales improved 2% from a year ago, offset by a 6% decrease related to unfavorable currency translation.
Overall corporate sales were $446 million, down 5% from last year's fourth quarter. Organic volume was flat, while acquisitions added 2% and currency translation cost 7%. Operating profit was $76 million, down from $106 million, while net income was $50 million, down from $72 million.
“Nordson delivered fourth quarter sales within our range of guidance, resulting in full year organic growth of more than three percent compared to the prior year,” said Hilton.
Sales for the fiscal year ended Oct. 31 were $1.69 billion, down approximately 1% from a year ago. Volume increased 6%, more than 3% from organic growth and more than 2% on acquisitions, offset by negative currency translation effects of 7%. Operating profit was $318 million, versus $367 million a year ago, while net income fell to $211 million from $247 million. Unfavorable currency translation negatively impacted full-year sales by $115 million, Nordson said.
Backlogs as of Oct. 31 were approximately $229 million, up 8% from 2014.
Nordson guided for first-quarter sales to slip 1% to 5%, with organic volume expected to range from a 3% drop to a 1% gain.
