Nordson's quarterly revenue, profit drop amid sluggish demand for equipment

Feb 19 - Dispensing equipment maker Nordson Corp NDSN.O reported a drop in quarterly revenue and profit on Wednesday, hit by a continued softening in demand for its products.

Shares of the company were down over 2% in extended trade.

Global decline in farm incomes has hit demand for new agricultural equipment, adversely affecting equipment makers such as Nordson, which makes agricultural spraying equipment.

A slowdown in consumer spending in the electronics market has also negatively impacted sales in the company's advanced technology solutions segment, which makes packaging tools for semiconductor production.

The company's industrial precision solutions unit that contributed to more than half of total sales in 2024 posted an 8.4% fall in quarterly sales.

"We experienced weakness across multiple end markets as we exited calendar year 2024, resulting in sales performance at the low end of our guidance range for our first fiscal quarter," Nordson CEO Sundaram Nagarajan said in a statement.

Nordson reported a net income of $94.7 million, or $1.65 per share, in the first quarter ended January 31, compared to $109.6 million, or $1.90 per share, a year ago.

The Westlake, Ohio-based manufacturer's quarterly revenue fell about 3% to $615.4 million.