Nordson(US:NDSN)2023-05-25 16:46Financial Performance - Worldwide sales for the three months ended April 30, 2023 were $650,165, an increase of 2.3% from $635,403 in the comparable period of 2022, driven by a 1.3% increase in organic sales and a 2.8% increase from acquisitions[98]. - Net income for the three months ended April 30, 2023 was $127,563, or $2.21 per diluted share, representing a 16.4% increase in net income and a 17.6% increase in diluted earnings per share compared to the same period in 2022[105]. - Sales in the Americas region for the six months ended April 30, 2023 were $543,610, an increase of 5.8% from the comparable period of 2022, consisting of a 3.7% organic sales increase and a 2.2% increase from acquisitions[113]. - Sales of the Industrial Precision Solutions segment for the six months ended April 30, 2023 were $647,353, an increase of 1.1% from $640,367 in the comparable period of 2022, driven by a 4.8% organic sales increase[119]. - Sales of the Advanced Technology Solutions segment were $292,476 for the six months ended April 30, 2023, an increase of 7.1% from $273,206 in the comparable period of 2022, driven by a 12.9% increase from an acquisition[124]. Profitability Metrics - Operating profit as a percentage of sales decreased to 25.1% for the six months ended April 30, 2023, compared to 27.3% in the comparable period of 2022, primarily due to unfavorable sales mix and higher interest expense[116]. - Operating profit as a percentage of sales for the Advanced Technology Solutions segment decreased to 17.6% for the three months ended April 30, 2023, compared to 27.4% in the comparable period of 2022, driven by an organic sales decrease[111]. - Operating profit as a percentage of sales decreased to 27.2% for the six months ended April 30, 2023, compared to 32.4% in the comparable period of 2022, reflecting a 5.2 percentage point decline due to sales mix changes and factory inefficiencies[123]. - Operating profit as a percentage of sales decreased to 14.7% for the six months ended April 30, 2023, down from 24.7% in the comparable period, primarily due to acquisition-related charges of $10,295 and factory inefficiencies[125]. Expenses and Costs - Cost of sales for the six months ended April 30, 2023 were $579,650, up from $546,800 in the comparable period of 2022, with gross profit margin decreasing to 54.0% from 56.1%[114]. - Selling and administrative expenses for the six months ended April 30, 2023 were $364,266, an increase of 1.8% from $357,936 in the comparable period of 2022, driven by the first-year effect of acquisitions[115]. Cash Flow and Investments - Cash provided by operations during the six months ended April 30, 2023, was $287,905, compared to $214,501 for the same period in 2022[129]. - Cash used in investing activities was $393,153 for the six months ended April 30, 2023, compared to $196,374 in the comparable period, with $377,843 used for the CyberOptics acquisition[130]. - Cash provided by financing activities was $64,822 for the six months ended April 30, 2023, compared to cash used of $192,935 in the comparable period, including net borrowings of long-term debt of $184,617[131]. Regional Sales Performance - In the Asia Pacific region, sales for the six months ended April 30, 2023 were $386,189, a decrease of 4.1% from the comparable period of 2022, consisting of a 3.6% organic sales decrease[113]. Tax and Inventory - The effective tax rate for the six months ended April 30, 2023, was 20.8%, compared to 21.0% for the same period in 2022[126]. - Inventories increased by $56,781 from October 31, 2022, primarily due to the CyberOptics acquisition[132]. Currency Impact - Average exchange rates for 2023 were generally unfavorable, with estimated sales for the six months ended April 30, 2023, being approximately $39,000 higher if translated at 2022 rates[128]. Acquisition - The CyberOptics acquisition, completed on November 3, 2022, was an all-cash transaction of approximately $378,000, expanding the company's test and inspection platform in the semiconductor and electronics industries[96]. Capital Resources - The company believes its capital resources and cash from operations are adequate to meet cash requirements for the next twelve months[133].