WESTLAKE, OHIO – Nordson reported fiscal fourth quarter sales were $569 million, down 1% year-over-year. For the quarter ended Oct. 31, net income was $87 million, up 8.8% compared to the same period last year. Operating profit was $115 million, a decrease of 8% year-over-year.
Adhesive Dispensing Systems sales for the quarter increased 1% year-over-year. Advanced Technology Systems sales decreased approximately 1%. Industrial Coating Systems sales decreased 8% compared to the prior year’s fiscal fourth quarter. Nordson’s brands include Nordson Asymtek, Nordson March, Nordson Dage, Nordson YesTech, Nordson Sonoscan, Nordson EFD, and Nordson Select.
Backlog for the quarter was approximately $394 million, a decrease of 1%.
“Despite tough comparisons to the prior year’s fourth quarter, Nordson delivered solid results,” said Michael F. Hilton, Nordson president and CEO. “Reported operating margin in the current quarter was negatively impacted by certain long-term investments, including facility consolidation efforts within the Adhesives segment and costs related to the launch of our new centralized shared service center in the United States. These investments will benefit both our customers and shareholders over the long-term.”
For the fiscal year ended Oct. 31, sales were $2.3 billion, up 9% year-over-year. Net income was $377 million, up 27.4% compared to the prior year. Operating profit was $495 million, an increase of 8%. Full year EBITDA increased 11% to $605 million.
“Our global Nordson team delivered full year organic sales growth of nearly 2.5% in the current year, against two challenging prior year comparisons, where we generated organic sales growth of 8% and 7% in fiscal years 2017 and 2016, respectively,” said Hilton. “In fiscal 2018, sales, operating profit, GAAP diluted earnings per share, and EBITDA were company records, highlighting our continued commitment to deliver the best technology solutions to our customers and to generate growth through innovation and superior customer service.”
Free cash flow before dividends increased 44% over the prior year to $415 million, or 110% of net income.
For fiscal 2019, organic sales are expected to increase in the range of 3 to 5% compared to fiscal 2018.