Posted April 30, 2020

Applied sees 6.2 percent sales decline

Third-quarter net sales for Applied Industrial Technologies decreased 6.2 percent to $830.8 million from $885.4 million in the prior year.

Sales decreased 9.5 percent on an organic daily basis reflecting a 10.9 percent decline in the Service Center segment and a 6.0 percent decline in the Fluid Power & Flow Control segment. The company reported a net loss of $82.8 million, or $2.14 per share, compared to net income of $16.5 million, or 43 cents, in the same quarter last year.

“We heightened our focus on cost control and cash generation during our third quarter given persistent weak industrial demand that was exacerbated by the initial impact from the COVID-19 pandemic in March," said Neil A. Schrimsher, president and chief executive officer. 

“While the ultimate impact from COVID-19 remains uncertain, we are monitoring the situation closely as it evolves, including mid-teen year-over-year organic sales declines on a days adjusted basis during March and high-teen declines month-to-date in April," he added. 

Schrimsher said Applied ended March in a positive liquidity position with over $165 million of cash on hand, as well as approximately $250 million of undrawn revolver capacity.