Nordson Corporation (NDSN) has reported a 52.88 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $75.87 million, or $1.31 a share in the quarter, compared with $49.62 million, or $0.84 a share for the same period last year. On an adjusted basis, earnings per share were at $1.39 for the quarter compared with $0.95 in the same period last year.
Revenue during the quarter grew 14.14 percent to $509.28 million from $446.20 million in the previous year period. Gross margin for the quarter expanded 136 basis points over the previous year period to 53.99 percent. Total expenses were 78.23 percent of quarterly revenues, down from 83.05 percent for the same period last year. This has led to an improvement of 481 basis points in operating margin to 21.77 percent.
Operating income for the quarter was $110.86 million, compared with $75.65 million in the previous year period.
"Nordson generated record sales in the quarter, driven by the value we bring our customers, the diverse and resilient end markets we serve, and the hard work of our global team," said Michael F. Hilton, Nordson president and chief executive officer. "Outstanding organic growth of 13 percent in the fourth quarter capped a terrific year in which we delivered 7 percent organic growth. All three of our operating segments and most geographies contributed to the growth in the quarter."
For the first-quarter 2017, Nordson Corporation forecasts revenue to grow in the range of 4 percent to 8 percent. The company expects diluted earnings per share to be in the range of $0.74 to $0.84.
Working capital decreases marginally
Nordson Corporation has witnessed a decline in the working capital over the last year. It stood at $414.03 million as at Oct. 31, 2016, down 1.61 percent or $6.78 million from $420.82 million on Oct. 31, 2015. Current ratio was at 2.25 as on Oct. 31, 2016, down from 2.45 on Oct. 31, 2015.
Debt comes down
Nordson Corporation has recorded a decline in total debt over the last one year. It stood at $984.79 million as on Oct. 31, 2016, down 11.80 percent or $131.81 million from $1,116.59 million on Oct. 31, 2015. Total debt was 40.65 percent of total assets as on Oct. 31, 2016, compared with 47.30 percent on Oct. 31, 2015. Debt to equity ratio was at 1.16 as on Oct. 31, 2016, down from 1.69 as on Oct. 31, 2015. Interest coverage ratio improved to 19.78 for the quarter from 15.17 for the same period last year.
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