There has been strong demand for dispensing and test and inspection equipment in the electronics end markets, especially for mobile devices. The company expects growth in mobile devices, particularly smartphones and tablets, to remain strong. It also sees growth in consumer non durables, such as rigid and flexible packaging and nonwovens. In the coatings market, appliances and small agro, niche energy and auto have been solid. Flexible packaging OEM demand has been soft. There is also weakness in PC server demand, which is linked to corporate spending. Niche solar has been weak.
The company believes the macroeconomic environment in 2013 will be similar to 2012. Europe is in a recession, there are fiscal cliff uncertainties in the United States, emerging markets are strong, but not as strong as historical levels.
Orders from the last 12 weeks (compared to the same period last years) increased by 5 percent. The highest increase was a 26 percent increase in the industrial coating segment.
The company expects sales to increase between 24 and 28 percent in 2013 and gross margins to be 58 percent. It expects strength in the industrial coating segment and systems segment to remain strong and to constitute a larger portion of its product mix. The first quarter will likely be weaker than the others as it is a seasonally weak quarter.
The transcript of the conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1064991-nordson-s-ceo-discusses-f4q2012-results-earnings-call-transcript?part=single
Copyright 2012 Jaygo's Earnings Conference Call Summaries
This work is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.
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