Nordson’s has reported sales of $550m in the first quarter of 2018, which is a 35% increase over the prior year’s first quarter.
This change in sales included organic volume growth of approximately 19 percent, growth related to the first year effect of acquisitions of approximately 12 percent, and an increase related to the favorable effects of currency translation as compared to the prior year’s first quarter of approximately 5 percent.
Reported operating profit was $118 million, net income was $105 million, and GAAP diluted earnings per share were $1.78, inclusive of a net $0.43 per diluted share benefit from one-time items mostly related to the impact of the U.S. tax reform.
Prior year first quarter sales, operating profit, net income and GAAP diluted earnings per share were $407 million, $76 million, $50 million and $0.86, respectively.
A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share and calculations for EBITDA, adjusted EBITDA, free cash flow before dividends, and adjusted free cash flow before dividends are included in the attached financial exhibits.
Nordson president and CEO Michael Hilton said: “Our team delivered impressive sales, operating profit, diluted earnings per share, and EBITDA in the quarter against very challenging prior year comparisons, where total company organic sales growth was 10%.”
The current quarter’s results include incremental intangible asset amortization expense of $6 million over the prior year, or $0.08 per diluted share, and charges of $1 million, or $0.01 per diluted share, for short-term purchase accounting related to the step-up in value of acquired inventory and $1 million, or $0.01 per diluted share, of non-recurring restructuring charges.
As a result of U.S. federal income tax reform legislation passed in 2017, a one-time discrete tax benefit of $22 million, or $0.37 per diluted share, was recognized in the quarter. This includes a benefit of $45 million related to the revaluation of net deferred tax liabilities and a charge of $23 million for the transition tax on deemed unrepatriated foreign earnings.
Additionally, a discrete tax benefit of $5 million, or $0.08 per diluted share, was recognized in the quarter related to the adoption of a new accounting standard requiring excess tax benefits related to share-based payment transactions to be credited to income tax expense rather than equity.