Applied Industrial Technologies sales fall slightly
Applied Industrial Technologies reported 3Q fiscal 2014 sales were $618.0 million, a decrease of 0.6% compared with $621.7 million in the same quarter a year ago.
Foreign currency exchange rates resulted in a negative 1.6% impact on sales in the quarter.
Net income for the quarter was $30.4 million, or 72 cents per share, compared with $29.3 million, or 69 cents, in the third quarter of fiscal 2013.
Year-to-date sales decreased 0.9% to $1.81 billion from $1.82 billion in the same period last year. Net income was $83.1 million, or $1.96 per share, compared with $85.9 million, or $2.02, last year.
The company also announced it has acquired Reliance Industrial Products of Nisku, Alberta, Canada, a supplier to the upstream oil and gas industry.
"We faced some market headwinds earlier in the quarter, and we made nice progress with our ERP business transformation. With our most recent 'Go Live' in April, our entire U.S. Service Center network is now operating on our new system. In addition, we are very pleased to add Reliance to our Company, significantly enhancing our capabilities to serve oil and gas markets in North America," said president and CEO Neil A. Schrimsher.
Reliance was founded in 1993 as a specialty hose and fitting supplier to serve the unique needs of the oilfield drilling industry. The business has expanded to offer a full range of products and services including design and manufacturing, hydraulic and mechanical repair, and oilfield, hydraulic and safety products.
Reliance primarily serves the oil and gas industry in Western Canada and the United States with some exposure to transportation, mining and construction. The business operates from 15 locations with ten in Western Canada and five in the United States in Texas, North Dakota, Colorado and Louisiana.
Reliance generated 2013 annual sales of $135 million. The purchase price of $189 million was funded with $168 million in cash, with the remainder due to the sellers in future periods.
"The addition of Reliance creates new opportunities for synergies across our businesses. Combined with our Texas Oilpatch Services (TOPS) operation in Houston, we have a strong foundation for growth in the areas of Fluid Conveyance and Oilfield Supplies," said Schrimsher.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
