) reported its financial result for the fiscal third quarter of
2013 (ended Jul 31) on Aug 22, 2013. Non-GAAP earnings per share
in the quarter fell 6.6% year over year to 99 cents, compared
with $1.06 earned in the year-ago quarter. The result was also
below the Zacks Consensus Estimate of $1.04 and below the
company's guidance range of $1.00-$1.09 per share range.
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GAAP earnings per share, including one-time items, came in at
Nordson Corporation's revenues in the quarter increased 6.1% year
over year to $403.0 million driven primarily by 7% contribution
from acquisitions, and offset by 1% negative foreign currency
translation impact. Organic growth was flat in the quarter.
Result fell below the company's guidance range of $404-$419
Backlog exiting the quarter stood at $197 million, down 21%
compared with the year-ago period while orders for the 12-week
ended Aug 18, 2013 were flat compared with the same period a
A brief discussion of revenue segments of Nordson Corporation has
been provided below:
Revenues from Adhesive dispensing systems business increased
11.9% year over year and represented 48.6% of total revenue in
the quarter. Advanced technology systems recorded 1.8% fall in
revenues and represented 37.3% of total revenue while revenues
generated from Industrial coating systems business expanded by
9.8% and stood at 14.1% of total revenue.
On a regional basis, revenues generated in the United States grew
14.7% year over year; Europe by 9.0% and Asia Pacific by 2.9%.
These increases were offset by revenue decline of 0.1% and 12.8%
recorded in the Americas and Japan, respectively.
Cost of sales in the fiscal third quarter went up 13.5% year over
year and represented 44.1% of total revenue; up from 41.2% in the
year-ago quarter. Selling and administrative expenses, as a
percentage of total revenue, stood at 32.7%. Operating margin in
the quarter was 23.1%, down from 25.9% in the year-ago quarter.
Exiting the fiscal third quarter 2013, Nordson Corporation had
cash and marketable securities balance of $75.4 million, up from
$62.8 million in the previous quarter. Long-term debt stood at
$548.2 million, up from $551.6 million in the sequential quarter.
In the fiscal third quarter 2013, Nordson Corporation generated
roughly $92.0 million cash from operating activities, an increase
of 17% over the year-ago quarter. Capital spending increased
51.2% and came in at $92.0 million. Free cash flow was $84.8
million, up 17.5% year over year.
On Aug 16, 2013, Nordson Corporation announced an increase of
20.0% or 3 cents in its quarterly dividend rate from 15 cents to
18 cents. This increase is the company's 50th annual increase in
a row. The new dividend will be paid on Sep 10, 2013 to
shareholders of record as on Aug 27, 2013.
Also, Nordson received approval for a $200 million share buyback
program that replaces its existing $100 million authorization. Of
the old program, roughly $41 million shares have already been
repurchased by the company.
For the fiscal fourth quarter of 2013, management of Nordson
Corporation anticipates sales to range within $391-$408 million,
down 7%-11% year over year. Organic growth is predicted to
decline in 6%-10% range while currency translation is likely to
impact results negatively by 1%. Earnings per share are expected
to be within the 87-98 cents range.
Nordson Corporation is a $4.6 billion company, operating in the
diversified machinery industry. The stock currently has a Zacks
Rank #2 (Buy). Other stocks to watch out for in the industry are
), each with a Zacks Rank #1 (Strong Buy), while
The Middleby Corp.
) carries a Zacks Rank #2 (Buy).