Nordson Profit Falls, But Sales Top Estimates

(RTTNews) - Dispensing equipment maker Nordson Corp. (NDSN), Wednesday reported a lower fourth-quarter profit, hurt by weak sales amid tough macro-economic conditions. Quarterly earnings missed Wall Street estimates, but sales came in above expectations.

Nordson provided weak earnings outlook for the first quarter while sales expectations indicate strength.

The lackluster fourth-quarter results were expected as Nordson earlier warned of tough business conditions, mainly in emerging markets.

During the quarter, sales volume at Nordson's Advance Technology Systems segment slid 14 percent from last year, due mainly to weakness in the electronics end market.

Volume in Industrial Coating Systems segment fell 11 percent, on a slump at consumer durable, general industrial and automotive end markets. Meanwhile, volume in Adhesive Dispensing Systems segment grew 3 percent.

As a whole, Nordson posted quarterly sales of $410.8 million, down 6 percent from $438.7 million last year. On average, 9 analysts polled by Thomson Reuters estimated sales of $403.8 million for the quarter.

The Westlake, Ohio-based company's net income for the quarter declined to $59.8 million or $0.92 per share from $67.7 million or $1.04 per share last year.

Excluding items, adjusted earnings were $0.93 per share, compared with $1.07 per share a year ago. Analysts expected earnings of $0.96 per share for the quarter. Analysts' estimates typically exclude special items.

Backlog at the end of the quarter was about $217 million, up 23 percent from a year ago.

For the first quarter, Nordson expects net earnings of $0.55 to $0.63 per share (inclusive of $0.02 per share of non-recurring items), and sales of $362 million to $375 million. Analysts currently expect earnings of $0.69 per share, with sales of $360.75 million for the quarter.

Nordson stock closed Wednesday at $71.76, down $1.47 or 2.01%, on a volume of 263 thousand shares. In after hours, the stock dropped $0.11 or 0.15% at $71.65. In the past year, the stock has trended in the range of $60.73 - $75.88.