Nordson Corporation (Nasdaq: NDSN) announced its fiscal first-quarter results for the period ending January 31, 2024. Sales reached $633 million, marking a 4% increase from the prior year’s $610 million. This growth included a 5% favorable acquisition impact and a 2% organic sales decrease, primarily due to ongoing challenges in electronics product lines partially offset by growth in medical interventional, industrial, and polymer processing product lines.
Net income was $110 million, translating to $1.90 earnings per diluted share, compared to the previous year’s net income of $104 million or $1.81 earnings per diluted share. Adjusted net income was $128 million, up $4 million from the prior year, with adjusted earnings per diluted share of $2.21, reflecting a 3% increase. This increase was primarily due to higher operating profit, offset by increased interest expense.
EBITDA for the quarter stood at $197 million or 31% of sales, compared to $181 million or 30% of sales for the prior year. This 9% increase was attributed to improved gross margins year-over-year.
President and Chief Executive Officer Sundaram Nagarajan commented on the first quarter results, stating that the sales were in line with expectations and the segments showed strong operating performance, exceeding first quarter earnings guidance. He expressed satisfaction with the performance of the IPS and MFS segments, as well as the steady progress of the ARAG acquisition integration.
Industrial Precision Solutions (IPS) sales increased by 14% to $355 million, driven primarily by industrial coatings, polymer processing, and nonwovens product lines. Medical and Fluid Solutions (MFS) saw a 3% increase in sales to $160 million, primarily due to growth in medical interventional solutions product lines. Advanced Technology Solutions (ATS) sales decreased by 18% to $119 million, driven by weakness across the segment, particularly in electronics dispense products serving semiconductor end markets.
Looking ahead, Nordson is entering the second quarter of fiscal 2024 with approximately $750 million in backlog, concentrated in systems businesses. Based on current visibility and order entry trends, the company is narrowing its full-year revenue growth guidance to 4%-7% over fiscal 2023 and adjusted earnings per diluted share to $10.00-$10.50.
Nordson Corporation, headquartered in Westlake, Ohio, is an innovative precision technology company that uses a scalable growth framework through an entrepreneurial, division-led organization to deliver top-tier growth with leading margins and returns. The company serves global customers through a wide variety of critical applications, including consumer non-durable, medical, electronics, and industrial end markets.
