Posted January 28, 2021

Applied's 2Q sales fall 9.9 percent

Applied Industrial Technologies said net sales for its fiscal 2021 second quarter decreased 9.9 percent to $751.3 million from $833.4 million in the prior year.

The change includes a 0.5 percent increase from acquisitions and a 0.1 percent increase from foreign currency translation. Excluding these factors, sales decreased 10.5 percent on an organic basis reflecting a 10.5 percent decline in the Service Center segment and a 10.1 percent decline in the Fluid Power & Flow Control segment.

A net loss of $­­­5.3 million, or 14 cents per share, compared to income of $38 million, or 98 cents, in the same period last year. Results include a non-cash impairment charge of $49.5 million pre-tax and non-routine costs of $7.8 million pre-tax.

"We have multiple catalysts to expand our market potential and accelerate growth opportunities throughout calendar 2021 and beyond. This activity includes addressing customers’ break-fix MRO requirements, supporting greater demand for specialized engineered solutions, and leveraging our multi-channel cross-selling initiatives," said Neil A. Schrimsher, president and chief executive officer. "In addition, we are making solid progress expanding our next generation automation capabilities following three acquisitions in the past 16 months, putting us in a strong position to address our customers’ emerging industrial technology and operational requirements."

Based on month to date sales in January and assuming normal seasonal patterns, Applied projects fiscal 2021 third quarter sales to decline 3 percent to 4 percent year over year on an organic basis.