Posted January 24, 2019

Applied reports 25.9 percent sales gain

Applied Industrial Technologies reported second quarter fiscal 2019 sales grew 25.9 percent to $840.0 million from $667.2 million in the same quarter a year ago.

The increase for the quarter reflects a 21.3 percent gain from acquisition-related volume.

Net income of $38.7 million, or 99 cents per diluted share, compared to net income of $30.9 million, or 79 cents, in the same period last year.

“While we are pleased to post year-over-year increases in our second quarter results, we did experience some deceleration as we progressed through the quarter. The contributing factors included significantly weaker sales in the final week of the calendar year, combined with some softness and project delays in our fluid power businesses tied to technology markets (electronic equipment and component manufacturers). Additionally, we experienced an adverse impact on our margins from a LIFO inventory charge related to more pronounced inflation experienced in the quarter,” said Neil A. Schrimsher, president and chief executive officer.