Applied Industrial Technologies reports loss
Applied Industrial Technologies reported net sales for its fiscal third quarter were $633.2 million, a decrease of 6.9% compared with $680.0 million in the same quarter a year ago.
Net loss for the quarter was $44.7 million, or $1.14 per share, compared to net income of $28.6 million, or 70 cents per share, in the third quarter of fiscal 2015. For the nine months ended March 31, 2016, sales decreased 9.1% to $1.88 billion from $2.07 billion in the same period last year. Net income was $3.5 million, or 9 cents per share, compared with $87.4 million, or $2.11 per share, last year.
The overall sales decrease for the quarter reflects a 2.3% increase from acquisition-related volume offset by a negative 1.8% foreign currency translation impact and a 7.4% decrease in core underlying operations. This 7.4% decrease consists of a 2.7% decline attributable to sales in traditional core operations with the remainder associated with sales in operations serving the upstream oil and gas markets.
"We continue to respond to the energy market challenges by decreasing ongoing operating expenses and positioning Applied for future value creation. We have implemented restructuring activities within our upstream oil and gas focused operations to reduce our operating expenses and de-risk our balance sheet," said Applied's president and chief executive officer Neil A. Schrimsher.