Recent acquisition accelerates growth track
By Terry Troy
Last week, Nordson Corporation of Westlake reported results for its third quarter ending July 31, which really came as no big surprise. The company continues on its strong growth track.
Sales were $662 million, a 2% increase compared to the prior year’s third quarter record sales of $647 million. The increase was approximately 7% driven by strong organic volume growth of 4% and a favorable acquisition impact.
The organic sales increase was driven by strong demand across most markets, particularly in electronics and medical markets. Operating profit in the third quarter was $185 million.
Founded in 1954, Nordson is an innovative technology company that serves global customers in a wide variety of markets, including consumer non-durable, medical, electronics and industrial end markets. It has operations and support offices in 35 different countries.
Earlier in August, Nordson announced that it had signed a definitive agreement for the acquisition of CyberOptics Corporation, a leading global developer and manufacturer of high-precision 3D optical sensing technology solutions, headquartered in Minneapolis. The acquisition enhances Nordson’s test and inspection platform, providing differentiated technology that expands Nordson’s product offering in the semiconductor and electronics industries.
“We are looking forward to welcoming CyberOptics’ nearly 200 employees to Nordson,” said Sundaram Nagarajan, president and CEO of Nordson. “The company’s leading-edge 3D optical sensing technology and market leading wireless measurement sensors will expand Nordson’s current test and inspection capabilities, allowing us to offer new differentiated solutions to our semiconductor and electronics customers.
“Applying the NBS Next growth framework, we will invest in CyberOptics’ greatest opportunities for profitable growth while also providing the advantages of our global business infrastructure and customer-centric model.”
CyberOptics’ sensors are used for inspection and metrology in the semiconductor and surface mount technology (SMT) markets to improve yields and productivity. The company’s inspection systems come with the assurance of high quality, accuracy and speed. Its innovative and proprietary 3D Multi-Reflection Suppression™ (MRS™) optical sensor technology and WaferSense® wireless measurement sensors for tool setup and diagnostics will expand Nordson’s growth opportunities into new areas of the semi-conductor wafer fabrication and packaging process. CyberOptics generates approximately $100 million in annual revenue.
“Our global Test & Inspection division within the Advanced Technology Solutions segment predominantly serves the electronics market in diversified end customer applications and has been delivering consistent profitable growth,” said Joseph Kelley, executive vice president and chief financial officer. “The differentiated technologies of CyberOptics combined with Nordson’s global sales, applications and service infrastructure will enable accelerated growth rates and the realization of $6 million in net cost synergies.”
