Applied Industrial Technologies income falls
Applied Industrial Technologies reported a 16.5% drop in net income for the first quarter of fiscal 2015, as sales declined 8.6%.
Net income for the quarter was $24.3 million, or 61 cents per share, compared with $29.1 million, or 70 cents, in the first quarter of fiscal 2015.
Net sales were $641.9 million, a decrease of 8.6% compared with $702.3 million in the same quarter a year ago.
The overall sales decrease for the quarter reflects a 1.8% increase from acquisition-related volume offset by a negative 3.2% foreign currency translation impact and a 7.2% decrease in core underlying operations. This 7.2% decrease consists of a 2.3% decline in traditional core operations along with a 4.9% decrease attributable to sales from the upstream oil and gas subsidiaries.
Commenting on the results, Applied's president and CEO Neil A. Schrimsher said, "Our first quarter results reflect the continued impact of reduced demand in many industrial end markets, most notably oil and gas, as well as headwinds from foreign currency translation. We continue to take a disciplined approach to controlling costs and driving improved efficiencies across our business.
"As a result of the continued weakness in some of our served markets, we are revising our full-year guidance and now expect earnings per share between $2.65 and $2.85 per share on a sales decrease of 5% to 7%.
"We are fully committed to generating shareholder value in any economic cycle through our business performance; expanding our product, service and solution offering; and creating opportunities with current and new customers. In addition, we will continue to optimize our capital allocation through dividends, share repurchases and acquisitions. We are pleased with the recent acquisition of S. G. Morris Co., a strong strategic fit that further enhances our fluid power market leadership and provides additional growth opportunities," Schrimsher added.
INDUSTRIAL SUPPLY MAGAZINE
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