Applied Industrial Technologies sales decline
Applied Industrial Technologies reported that its second quarter fiscal 2020 sales decreased 0.8 percent to $833.4 million from $840.0 million in the prior year.
Excluding a 3.2 percent increase from acquisitions, sales decreased 4.0 percent on an organic basis reflecting a 3.5 percent decline in the Service Center segment and a 4.9 percent decline in the Fluid Power & Flow Control segment. Net income was $38.0 million, or 97 cents per share, compared to $38.7 million, or 99 cents, in the prior year. EBITDA for the quarter of $74.5 million compared to $76.0 million in the prior year.
“We are executing on our earnings commitments midway through fiscal 2020 despite tepid demand industry-wide, and are on track to achieve record free cash flow. In the current slow environment, we remain focused on expense control, leveraging our technical and cross-selling capabilities, and pursuing M&A that enhances our earnings and return potential long term,” said Neil A. Schrimsher, president and CEO.
He added that end-market demand remains challenging and uncertain, with the recent quarter was impacted by an unusually slow December. "While likely impacted by typical seasonal variability this time of year, we expect subdued industry demand to persist near-term as customers slowly rebound from an evolving trade and industrial production backdrop,” he said.
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