Posted January 27, 2022

Applied's 2Q sales up 16.7 percent

Applied Industrial Technologies reported that its net sales for the second quarter increased 16.7 percent to $876.9 million from $751.3 million in the prior year.

The change includes a 1.6 percent increase from acquisitions and a 0.3 percent increase from foreign currency translation, partially offset by a negative 1.6 percent impact from one less selling day. Excluding these factors, sales increased 16.4 percent on an organic daily basis reflecting a 15.1 percent increase in the Service Center segment and a 19.3 percent increase in the Fluid Power & Flow Control segment.

Net income of $­­­57.0 million, or $1.46 per share, compared to a net loss of $5.3 million, or a loss of 14 cents per share, in the same period last year.

“Sales growth accelerated as the quarter progressed reflecting positive industrial activity and solid execution across our expanding addressable market. At the same time, our team is responding well to broader inflation and supply chain dynamics with gross margins and EBITDA margins improving during the quarter," said Neil A. Schrimsher, president and CEO. "Overall, the performance demonstrates our operational focus and earnings potential as we leverage our leading technical industry position and local domain expertise across an expanding industrial backdrop.”

The Cleveland-based distributor is raising guidance for fiscal 2022 and now projects EPS of $5.70 to $5.90, based on projected sales growth of 11.5 percent to 12.5 percent