Sales Performance - Worldwide sales for the three months ended July 31, 2021 were $646,858, an increase of 20.2% from $538,181 in the comparable period of 2020, driven by a 20.2% increase in organic sales volume [101]. - For the nine months ended July 31, 2021, worldwide sales were $1,762,962, an increase of 12.8% from $1,562,575 in the comparable period of 2020, driven by an 11.6% increase in organic sales volume [113]. - Sales outside the United States accounted for 68.8% of total sales in the three months ended July 31, 2021, compared to 65.9% in the same period of 2020 [102]. - Sales in the Asia Pacific region for the nine months ended July 31, 2021 increased by 24.3% to $510,609, driven by a 21.1% organic sales volume increase [114]. - Sales of the Industrial Precision Solutions segment for the nine months ended July 31, 2021 were $932,640, an increase of 11.7% from $835,038 in the comparable period of 2020 [120]. - Sales of the Advanced Technology Solutions segment for the nine months ended July 31, 2021 were $830,322, an increase of 14.1% from $727,537 in the comparable period of 2020 [122]. Profitability - Gross profit margin increased to 56.5% for the three months ended July 31, 2021, up from 52.2% in the comparable period of 2020, primarily due to favorable sales volume leverage and product mix [104]. - Operating profit for the three months ended July 31, 2021 was $188,276, representing an increase of 67.9% from $112,055 in the same period of 2020, with an operating margin of 29.1% [106]. - Operating profit for the nine months ended July 31, 2021 was $463,692, an increase of 48.6% from $312,177 in the same period of 2020, with an operating margin of 26.3% [117]. - Net income for the three months ended July 31, 2021 was $142,182, or $2.42 per diluted share, a 63.5% increase in net income and a 62.4% increase in diluted earnings per share compared to the same period of 2020 [108]. Cash Flow and Investments - Cash provided by operations during the nine months ended July 31, 2021, was $375,456, an increase from $309,958 for the same period in 2020 [129]. - Cash used in investing activities was $22,997 for the nine months ended July 31, 2021, significantly lower than $163,192 used in the comparable period of 2020 [130]. - Cash used in financing activities was $388,126 for the nine months ended July 31, 2021, compared to $75,404 in the same period of 2020 [131]. Future Outlook - Backlog entering the fourth quarter of fiscal year 2021 is approximately $700 million, or 70% above the prior year [134]. - The company expects full-year sales growth in fiscal 2021 to be approximately 11% to 12% over fiscal year 2020 [135]. - Full year 2021 earnings per diluted share is forecasted in the range of $7.75 to $7.95, representing a strong second half with year-over-year sales growth of 14% and earnings growth of 47% [135]. Tax and Debt - The effective tax rate for the three and nine months ended July 31, 2021, was 21.2% and 20.8%, respectively, compared to 8.9% and 16.0% for the same periods in 2020 [125]. - The decrease of $83,072 in pension obligations was primarily due to pension contributions during the second and third quarters of 2021 [132]. - Long-term debt decreased by $278,221 primarily due to the full repayment of the term loan due 2024 [132]. - The company was in compliance with all debt covenants at July 31, 2021 [133].
Nordson(NDSN) - 2021 Q3 - Quarterly Report