Nordson faces risks from fluctuating exchange rates impacting international sales and operations. Potential losses from uncollectible accounts and environmental remediation liabilities are also noted. Acquisitions, including integration challenges, and economic downturns (especially in electronics and medical sectors) pose further risks. Increased interest expense due to higher debt levels from acquisitions is a significant concern.
Financial Upside
Nordson's sales increased slightly in the recent quarter, driven by acquisitions and some organic growth. Improved gross profit margins and manufacturing efficiencies are positive signs. The company's liquidity position appears strong, with cash increases and available borrowing capacity. Acquisitions of Atrion, ARAG, and CyberOptics, while presenting integration challenges, could expand market share and product offerings.
