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Nordson Corp. Reports Operating Results (10-Q)

June 08, 2010 | About:
10qk

10qk

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Nordson Corp. (NDSN) filed Quarterly Report for the period ended 2010-04-30.

Nordson Corp. has a market cap of $2.05 billion; its shares were traded at around $60.53 with a P/E ratio of 18.9 and P/S ratio of 2.5. The dividend yield of Nordson Corp. stocks is 1.3%. Nordson Corp. had an annual average earning growth of 8.5% over the past 10 years.NDSN is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Ron Baron of Baron Funds, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

On a geographic basis, Asia Pacific sales for the three months ended April 30, 2010 increased 104.1% from the comparable period of the prior year. The increase consisted of volume of 97.1% and favorable currency effects of 7.0%. Sales increases in this region occurred across all three business segments. Sales in the Americas region for the three months ended April 30, 2010 were up 54.3%, with volume increasing 38.5% and favorable currency effect adding 15.8%. United States sales increased 24.2%. The European sales increase of 14.8% consisted of 8.4% volume and 6.4% currency. Sales in Japan for the three months ended April 30, 2010 increased 9.1% from the three months ended April 30, 2009, with volume increases of 3.8% and favorable currency effects of 5.3%. All regions were impacted by strong demand in the Advanced Technology Systems segment.

On a geographic basis, Asia Pacific sales for the six months ended April 30, 2010 increased 84.6% from the comparable period of the prior year. The increase consisted of volume of 77.6% and favorable currency effects of 7.0%. Sales increases in this region occurred across all three business segments. Sales in the Americas region for the six months ended April 30, 2010 were up 42.9%, with volume increasing 30.1% and favorable currency effects adding 12.8%. United States sales increased 14.6%. The European sales increase of 14.1% consisted of 5.7% volume and 8.4% currency. Sales in Japan for the six months ended April 30, 2010 increased 1.8% from the six months ended April 30, 2009, with volume decreases of 2.3% offset by favorable currency effects of 4.1%. All regions were impacted by strong demand in the Advanced Technology Systems segment.

Cost of sales for the three months ended April 30, 2010 were $97,792, up from $85,957 in 2009. Cost of sales for the six months ended April 30, 2010 were $186,706, up from $165,328 in 2009. The increases compared to the prior year reflect an increase in sales volume. The gross margin percentage was 61.1% for the three months ended April 30, 2010, as compared to 54.5% for the comparable period of fiscal year 2009. The gross margin percentage was 60.5% for the six months ended April 30, 2010, as compared to 56.0% for the comparable period of fiscal year 2009. The gross margin percentage increases in the current year are due to higher absorption of fixed overhead costs, the impact of cost reduction activities taken in fiscal year 2009, changes in product mix and favorable currency effects.

Operating profit as a percent of sales for the Adhesive Dispensing Systems segment increased to 33.5% for the three months ended April 30, 2010 from 27.5% in 2009 and to 30.7% for the six months ended April 30, 2010 from 26.3% for the comparable period of 2009. The increases were primarily due to higher gross margin percentages and to sales volume increasing at a higher rate than operating costs.

For the Advanced Technology Systems segment, operating profit as a percent of sales for the three months ended April 30, 2010 was 21.6% compared to an operating loss of 1.1% of sales for the three months ended April 30, 2009. For the six months ended April 30, 2010 operating profit as a percent of sales was 19.8%, up from 0.7% last year. The increases were primarily due to sales volume increasing at a higher rate than operating costs.

Net income for the three months ended April 30, 2010 was $32,431, or $0.94 per share on a diluted basis, compared to $13,843, or $0.41 per share on a diluted basis in the same period of 2009. This represents a 134.3% increase in net income and a 129.3% increase in earnings per share. For the six months ended April 30, 2010, net income was $59,163, or $1.73 per share on a diluted basis, compared to $24,999, or $0.74 per share for the six months ended April 30, 2009. This represents a 136.7% increase in net income and a 133.8% increase in earnings per share.

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