Nordson Corporation is one of the world's leading producers of precision dispensing equipment that applies adhesives sealants and coatings to a broad range of consumer and industrial products during manufacturing operations. The company also manufactures technology-based systems for curing and surface treatment processes. Headquartered in Westlake Ohio Nordson has more than three thousand eight hundrednemployees worldwide and direct operations and sales support offices in thirty countries.ntainers. Nordson Corp. has a market cap of $1.8 billion; its shares were traded at around $53.58 with a P/E ratio of 21.09 and P/S ratio of 1.6. The dividend yield of Nordson Corp. stocks is 1.42%. Nordson Corp. had an annual average earning growth of 7.2% over the past 10 years. Highlight of Business Operations:Selling and administrative expenses, excluding severance and restructuring costs, for the three months ended July 31, 2009 were $83.6 million, compared to $110.9 million for the comparable period of fiscal year 2008. This represented a decrease of $27.3 million, or 24.6%. Selling and administrative expenses, excluding severance and restructuring costs, for the nine months ended July 31 30, 2009 were $248.9 million, compared to $326.0 million for the comparable period of fiscal year 2008. This represented a decrease of $77.0 million, or 23.6%. The decreases were largely due to reduced compensation expenses associated with lower employment levels, furloughs, and lower incentive compensation, and tightened control over discretionary spending. In addition, currency translation effects decreased selling and administrative costs by 4.7% for the three-month period and 5.7% for the nine-month period.
In September 2008, we initiated a cost reduction program that involved a combination of non-workforce related efficiencies and workforce reductions primarily in North America and Europe. In response to the continued economic slowdown, additional cost reduction actions were taken in fiscal year 2009. It is anticipated that the total severance and related costs of these actions will be approximately $23 million of which $5.6 million occurred in fiscal year 2008, $8.1 million occurred in the three months ended January 31, 2009, $5.1 million occurred in the three months ended April 30, 2009 and $1.0 million occurred in the three months ended July 31, 2009. The remainder will occur in the last quarter of fiscal year 2009 and in fiscal year 2010. The severance costs are being recorded in the Corporate segment.
Other income was $0.1 million for the three months ended July 31, 2009, and $2.6 million in the comparable period of the prior year. Included in those amounts were foreign exchange gains of $0.2 million in 2009 and $1.2 million in 2008. Also, included were net losses of $0.3 million related to changes in the values of a rabbi trust asset and deferred compensation liabilities in the three months ended July 31, 2009 compared to net gains of $0.5 million in the three months ended July 31, 2008. Other income for the nine months ended July 31, 2009 was $7.3 million, compared to $4.8 million for the nine months ended July 31, 2008. The current year amount included a $5.0 million gain on the sale of real estate. Also included in other income were foreign exchange gains of $1.5 million in fiscal year 2009 and $2.2 million in fiscal year 2008.
Net income for the three months ended July 31, 2009 was $24.0 million, or $0.71 per share on a diluted basis, compared to $32.4 million, or $0.93 per share on a diluted basis in the same period of 2008. This represents a 25.9% decrease in net income and a 23.9% decrease in earnings per share. For the nine months ended July 31, 2009, net income was $49.0 million, or $1.46 per share on a diluted basis, compared to $86.8 million, or $2.53 per share for the nine months ended July 31, 2008. This represents a 43.5% decrease in net income and a 42.3% decrease in earnings per share.
During the nine months ended July 31, 2009, cash and cash equivalents increased $8.8 million. Cash provided by operations during this period was $119.3 million, up from $86.6 million for the nine months ended July 31, 2008. Cash of $70.5 million was generated from net income adjusted for non-cash income and expenses, and changes in operating assets and liabilities generated $48.8 million of cash.
For the fourth quarter of fiscal year 2009, sales are expected to be in the range of $224 million to $235 million, down 21% to 25% compared to the same period a year ago. Diluted earnings per share are expected in the range of $0.75 to $0.87, inclusive of a $0.04 per share charge associated with restructuring activities.
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